If you are the beneficary of an insurance policy it is yours. You will need to pay her bills out of her money though.

Each state is different, you need to check to see what is legal.

When my mother passed I just had to send her death certificate to the ones she owed and it was all I had to do....

Sending you a PM, I live in Illinois too.

If I were an heir and also he beneficiary of a life insurance policy, to be quite honest, my conscience would bother me, and i would pay the bills off that concerned medical care first. I would not feel any obligation for credit cards, because those large companies are protected through their own insurance policies for loss. Most states do require that bills be paid off first. If the person died intestate, then the state would handle the money, or the attorney you hire to handle the estate. The attorney would be the one that would be able to counsel you concerning the laws of your state.

First of all, my deepest sympathy. My daughter, the lawyer, handled everything for me when her sister died . Every state has guidelines how to "probate estates." First paid is the funeral. If there is any money left-then the bills get paid. Even if you just call a lawyer to get information on the rules in your state,and how to get them you won't be guessing. I assume there was no will. Two years after my daughter's death, I am still getting bills for her. I think that is crazy, where have they been, who lets a bill go over a year before billing for payment! I just send them a letter telling them they are too late, she died over a year ago. Case closed.

When my father passes away, I called J C Penneys to get the total of the balance. I was told I didn't have to pay it. My brother and I were in the will and on the life insurance. We paid all his bills and split what was left. My father would have been very angry if we didn't pay his bills. Even if he didn't have any estate I would ha e tried to pay some part of his bills. That's just me.

According to Susie Orman, when a person dies so does their debts, but if their is a surviving spouse, then it becomes their responsibility.

Wrote one message and lost it so will try again.

If the life insurance is payable to the estate then the bills should be paid from that as it is part of the deceased's estate. If the life insurance is payable to an individual than that individual collects the insurance and the bills do not have to be paid from it. If there is not enough money in the estate itself to pay all the bills, the creditors will have to write off their bills. As for the will stating all the bills should be paid, they are to be paid from the estate and they are not required to be paid by other individuals.

I would check with a lawyer to be sure that your state is like that as different states have different rules, but I think the above is pretty well general. The lawyer shouldn't charge much for answering a few questions for you I wouldn't think and then you will know what the laws are in your state for sure.

Just my two cents worth for the day.

Just saw where you said there was a trailer involved, that is another whole ball of wax depending on whose name it was titled in. If it is in your mother's name even though your sister lived with her, you will need to see an attorney as that trailer will be part of her estate and most likely will have to go thru probate depending on it's value. If it is titled in both their names it will depend on how it is titled, "with right of survivorship" or however as those things at tricky. You can't just transfer the title on it, there are rules and regulations in most states. Consult an attorney at least to get some questions answered. He may be able to file a small estate affidavit and can advise you on the bills as a result of the trailer. Too many "ifs ands and buts" to give general information on a board like this. Life insurance is one thing but the rest is another whole ball of wax.