<p>My 27 year old niece passed away early this month (she took an intentional overdose of tylenol.) She was unmarried with no children. In addition to her parents dealing with this tragic loss, there is the financial/paperwork aspect to be dealt with. I am helping them with these issues.</p>
<p>I know from earlier posts not to close any accounts and that nothing needs to be taken care of immediately. </p>
<p>She had a leased apartment and it will be vacant by the end of this month. Her cable and electric/gas service will be discontinued by the end of this month. </p>
<p>The funeral expenses were very high I believe they were well over 10K. She had paid into a pension and had a life insurance policy. There was an autopsy done although the results are not ready. Death certificates are prepared and ready to be submitted to both life insurance and pension offices. Her last paycheck will be disbursed to her sisters as shed requested on her intake papers. </p>
<p>She had debt amounting to about 7K. </p>
<p>My questions:
I do not believe that the life insurance will be paid in this situation. Is that correct?
What do we do about the unsecured debt?</p>
<p>I am sure I have more questions but cant think of them right now. </p>
<p>If the life insurance policy is more than 2 years old, it will likely pay. of course, each policy can be unique, but that is frequently the case.</p>
<p>Many insurance companies realize now that people don’t buy insurance policies and then wait for two years to commit suicide.</p>
<p>Unsecured debt (like credit cards) may just get charged off if she has no assets. Her debtors can’t go after relatives (such as her parents) as long as they aren’t inheriting anything…which it sounds like they’re not.</p>
<p>My BIL’s brother died similarly and had no assets. His debts (credit cards) were just charged off. He was single and no one else could be held responsible for his debts.</p>
<p>*Her last paycheck will be disbursed to her sisters as she’d requested on her intake papers. *</p>
<p>I don’t know if this can happen if there is debt to pay first. However, I’m not sure about this.</p>
<p>If she belonged to a union, they can be very helpful. If she did not, speak to HR where she worked.</p>
<p>Her life insurance may pay out but there is only one way to find out. You must speak with the company or its representative plus get a copy of the policy. </p>
<p>Also, I would not pay out her last check to her sisters just yet. That money may be needed to pay for the funeral. </p>
<p>Again, I am so sorry and please accept my sympathies.</p>
<p>Pengo, so sorry about your family’s loss. You should consult an attorney as soon as you can regarding the various steps to close the estate. Although you may be able to help with some paperwork, legally someone probably needs to be named the personal representative for the estate to do things like handle checks, pay debts, collect from the insurance company, etc. I am the executor for a sibling’s estate, and my estate attorneys have been worth their weight in gold. Please find an attorney as soon as you can, and do not rely on postings here (as much as I love fellow CCers, and love to dispense advice as much as anyone does!). I know from experience that laws vary widely from state to state, and also that an attorney can help protect the heirs’ interests in these situation (ie, if insurance company tried to get out of paying, but maybe really should pay under state law, etc.). I suggest an attorney with some estate experience (ask them) – they don’t have to specialize in estates if it isn’t too complex, but you sure don’t want to be the first one someone deals with just because the attorney is a personal friend or something.</p>
<p>I agree with the attorney advice. There are too many particulars that those who are not constantly working in that specific field are not going to know. I, too, am sorry to read about this.</p>
<p>Who is the executor of her estate? Her parents? Did they make any commitments to pay for the funeral themselves or did they sign something that the insurance money will be used (or both)?</p>
<p>How much is the life insurance policy for? Is it more than the cost of her debts and funeral?</p>
<p>Was her life insurance a private policy or one provided by her job? A private policy will likely have a 2 year exclusion for suicide, but one provided by a job may not. My in-laws owned an independent insurance agency for over 50 years, and they gave me this info. Of course, each state has its own insurance regulations, but private life insurance often have those 2 year suicide exclusion clauses. </p>
<p>I would wait a bit before bringing an attorney into this. If the insurance company will pay out, then you won’t need one to fight that issue. I’m concerned that an attorney will just add to the bill. And, if the policy was thru a job, it may have a different provision for suicide, so you need to look at the policy.</p>
<p>Sure, it’s nice to have an atty to sort this out, but if the parents end up being liable for some of the funeral costs, they may not also want to pay for an atty also. </p>
<p>If the life insurance policy pays out, but the amount is less then her total debts (including the funeral costs), how would an attorney get paid??? If the parents end up having to pay for some of the funeral costs, will they also want to pay for an atty if there’s no money left over after paying debts and funeral?</p>
<p>I agree that the siblings cannot be given the last paycheck. It doesn’t matter that the deceased requested such. Debts get paid first.</p>
<p>Thank you all for your thoughts. There are some things pointed out that I hadn’t thought of. Brain’s not been clear lately. </p>
<p>Life insurance was through her job (which she held for 5.5 years.) Her parents have already paid the funeral expenses - not sure how they did that. It was such a shock that not much thought was put into everything that had to be done. I am pretty sure that if the $ is paid to the siblings, they will most probably give it to their parents. Their’s is a very tight-knit family.</p>
<p>I will pass on the info and look to read the ins policy.</p>
<p>Too late in this case, but for others reading this, I called around to get cremation prices and was quoted a rather low price, like $800-$1000 out the door, so to speak. Had I not called first and gotten the phone deal the same services would have been $2700! Definitely call first.</p>
<p>Life insurance has a two year contestability period, after that it does not matter if she committed suicide, so in all the state I know of it should pay.</p>
<p>Also, I have been dealing with an estate for several months, don’t stress getting it all done ASAP, just do it over a bit of time and</p>
<p>*
Life insurance payouts are sacrosanct and they can not be touched by private creditors. *</p>
<p>But, sometimes when people are arranging to cover funeral costs (which can be high), they sign something that indicates that proceeds from insurance will go towards the funeral costs.</p>
<p>Someone will have to be appointed an administrator in order to get the pension paid out, and this is by the probate court (or court of similar function in your state). Many times publication is required so that creditors may be paid out prior to heirs, and funeral expense reimbursement may get some priority over other debts - seek advice of qualified attorney, it is not so expensive.</p>
<p>I want to agree with Somemom. Don’t stress out. These things take time and there is no reason to panic. A good lawyer is a blessing. So sorry to hear about your niece.</p>