The beneficiary of the insurance is not liable for any debts of the deceased. The deceased ESTATE is liable for the debts (our assets stand good for our debts, just listen to Dave Ramsey) so if your parent had any assets, those should be sold and the money used to cover the debts. Any remainder would then be payable to the deceased heirs.

what ever you do and whom ever you talk to get names numbers and keep a very long paper trail to follow up on if you family member had a will the lawyer that wrote it up should have the answers

*thank you, you put it much clearer than I did. :)

Spoke with my husband who has been in administration with senior care. The laws vary from state to state. He suggested contacting the sate IRS a financial planner and or legal advice all of which should be free. He indicates hospitals and care facilities can leagally put a lean on properties, insurances etc until bills are settled.

Your sister is named beneficiary on the insurance policy - that is her money, period. She is not obligated to spend it on any of your mother's bills or other debts. Note, she's also not obligated to share it with anyone else - siblings, cousins, etc. It's all hers.

If there is no will, and even if there are no viable assets, there are still papers that need to be filed so that an administrator can be named, and Letters of Office issued. No titles can be transferred or property sold without the Letters of Office.

All assets not shared (that is, having someone named as owner with her) automatically become the property of "The Estate of ..." [insert mother's name]. Cars, bank accounts, homes, jewelry, etc. All that will be sold off and used to pay any debts owed by the Estate. These debts are given certain priorities - that is, some people get paid before others according to the laws in your state. MAKE SURE you go by that list. If you pay someone out of turn, the others have a right to sue the estate AND the administrator for mishandling the estate.

Please, seek the advice of a reputable attorney in your state, even if it's just a one-time consulting visit. Estate management can be done independent of an active attorney, but at least have them give you a detailed list of what needs done, where and how to file, deadlines for filing, etc.

I would agree.

First of all thanks to all of you for your input. Even though our mother didn't have a will, only owned the trailer that they lived in, and had just the life insurance. And only my sisters name was on the policy. One of our brothers says that they have the right to take her to court to collect money and or the house. He said that my sister told him that my mom had told her to share. I don't recall my sister saying that my mom said anything like that. But she says that she is going to share but not as much as she said she would when mom first passed away. If the house goes to probate he won't be able to do anything about it right?

He can sue all he likes for the insurance, but her name is on the policy and that's the end of that.

Conversely, he can try to collect from the proceeds of the sale of the home, but that would be a judge's decision. It depends on how your state prioritizes the debtors vs unacknowledged heirs.

Again, Please have her talk to a reputable attorney.

Don't know what kind of bills your are referring too, but when my Mom passed away "most" of the credit card companies just "wrote it off" and did not require any more payments. One did want all their money and threatened to put a lien on Mom's house. I seriously doubt they would have done it as the house was not worth much. If your Mom is the only person named as the responsible party on her bills, you should not be responsible. If there is any money in her estate, some creditors may require payments until it is depleted. BUT my advise to you is contact whoever your Mom owed money to. Advise them your Mom has passed. In Texas without a will any assets are divided equally among any living spouse and or children. You may sign your share of the home over to your sister if you choose to. But your first priority is to contact, Social security, and any creditors. Let them tell you what their policy is and if you have questions absolutely request to speak to supervisor. I was able to negotiate a reduced payment on the one that was so rude and uncaring by demanding to speak with a supervisor. I was also told that no assests(the home, any insurance, personal belongings) can be dispursed until all creditors are satisfied. Hope this helps.

I would say no the insurance money is yours, not the estates.