[et_pb_section fb_built=”1″ _builder_version=”4.25.2″ _module_preset=”default” custom_padding=”0px||0px||false|false” global_colors_info=”{}”][et_pb_row _builder_version=”4.25.2″ _module_preset=”default” width=”100%” max_width=”100%” custom_padding=”0px||0px||false|false” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.25.2″ _module_preset=”default” background_image=”https:\/\/brunetassocies.com\/wp-content\/uploads\/2024\/06\/Hero-section-Brunet-6.webp” background_position=”top_center” background_vertical_offset=”30%” pac_dcm_carousel_specific_module_num=”0″ global_colors_info=”{}”][et_pb_post_title meta=”off” featured_image=”off” module_class=”imfd” _builder_version=”4.25.2″ _module_preset=”default” title_text_align=”center” title_text_color=”#FFFFFF” title_font_size=”30px” use_background_color_gradient=”on” background_color_gradient_stops=”#3a3b3d 1%|#b3192f 100%” custom_padding=”200px||200px||false|false” custom_padding_tablet=”” custom_padding_phone=”100px||100px||true|false” custom_padding_last_edited=”on|phone” title_font_size_tablet=”26px” title_font_size_phone=”24px” title_font_size_last_edited=”on|desktop” global_colors_info=”{}”][\/et_pb_post_title][\/et_pb_column][\/et_pb_row][\/et_pb_section][et_pb_section fb_built=”1″ _builder_version=”4.25.1″ _module_preset=”default” background_color=”RGBA(255,255,255,0)” custom_margin=”||-90px||false|false” border_color_all=”#b3192f” border_width_right=”4vw” border_color_right=”#B3192F” global_colors_info=”{}”][et_pb_row custom_padding_last_edited=”on|phone” admin_label=”Titre de l’article” _builder_version=”4.25.2″ _module_preset=”default” custom_padding=”||0px||false|false” custom_padding_tablet=”||0px||false|false” custom_padding_phone=”0px||||false|false” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.25.2″ _module_preset=”default” pac_dcm_carousel_specific_module_num=”0″ global_colors_info=”{}”][et_pb_heading title=”Did you know that life insurance may not be included in the estate assets?” _builder_version=”4.25.2″ _module_preset=”default” title_level=”h2″ title_font=”–et_global_body_font|600|||||||” title_font_size=”16px” title_line_height=”1.3em” custom_padding_tablet=”” custom_padding_phone=”||30px||false|false” custom_padding_last_edited=”on|phone” global_colors_info=”{}”][\/et_pb_heading][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=”4.25.2″ _module_preset=”default” custom_margin=”20px||||false|false” custom_margin_tablet=”20px||||false|false” custom_margin_phone=”0px||||false|false” custom_margin_last_edited=”on|phone” custom_padding=”0px||||false|false” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.24.2″ _module_preset=”default” pac_dcm_carousel_specific_module_num=”0″ global_colors_info=”{}”][et_pb_text _builder_version=”4.25.1″ _module_preset=”default” text_font_size=”16px” header_3_font=”Prata||||||||” global_colors_info=”{}”]<\/p>\n
Thomas\u2019s mother passed away last spring. According to her last will, she left all her possessions to her son, Thomas, and appointed him as liquidator. His mother also held a $100,000.00 life insurance for which she designated her son as sole beneficiary. <\/p>\n
When preparing his mother\u2019s estate inventory, Thomas finds that she owned a 2003 Toyota and possessed a bank account, for a total value of $25,000.00. He however realises that owed a considerable amount of debt \u2013 approximately $75,000.00 in credit card and personal loans. Thomas is worried because he cannot afford to pay off his mother\u2019s debts since the estate is insolvent. <\/p>\n
He remembers that he received a $100,000.00 check by mail from the insurance company. The check was issued under his personal name. He is wondering, since he is the sole heir to his mother\u2019s estate, if he must include that amount in the inventory\u2019s list of assets. This amount, he tells himself, would pay off his mother\u2019s debts, but limit his inheritance. <\/p>\n
Did you know that a life insurance may not considered an asset in the estate? If specific beneficiary is designated in the policy, said beneficiary will be able to cash in this amount \u2013 with no responsibility and obligation towards the estate\u2019s debts. Therefore, unless otherwise provided for in the insurance policy or the will, a life insurance with a designated beneficiary will not be part of the estate and does not have to be accounted for in the estate\u2019s assets. <\/p>\n
Consequently, since Thomas\u2019s mother had appointed him as beneficiary to her life insurance, he will simply refuse the insolvent estate by renouncing it through a notarial document while still being able to use the $100,000.00 amount (which is non-taxable) as he pleases without having to repay any debt whatsoever.<\/p>\n
It is essential to point out that if no specific beneficiary were appointed for in the policy, the insurance will be paid directly to the estate. Since the amount would then go in the estate\u2019s bank account, it would also have to be accounted for in the estate\u2019s assets and thereby, be used to pay off the debts. <\/p>\n
Should you be facing such a situation and need advice, do not hesitate to contact us.<\/p>\n
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