My husband was convicted in a criminal case and has to pay a hefty restitution. There is a life insurance policy on him that we had in place prior to any of his worng-doings that my daughter and I are beneficiaries of. In the event of his death, can the proceeds from this policy be taken for restitution as part of his estate?
Answer
Maybe. Who owns the policy? If he is the owner, not merely the insured, it seems to be one of his assets that a creditor can reach. Is it whole life, with any cash surrender value, or merely a term policy with no current value? This answer may have impact on whether or not a creditor will seek to attach the policy. This is a response to an Internet question and the rerply is not intended to be legal advice or as creating an attorney-client relationship.
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