[WSBAPT] Life Insurance Proceeds Subject to Decedent's Debts?

[Stromberg, Spencer]

Hello listmates -

I'd appreciate anyone's insight on the following situation regarding a
probate question.

Background:

   - Decedent was divorced.
   - Decedent had a life insurance policy listing former spouse as
   beneficiary with no alternate beneficiary named.
   - Adult Child of Decedent was told by the insurance company that they
   needed to present letters testamentary to claim the proceeds of the life
   insurance policy.
   - Adult Child opened probate and a creditor of Decedent submitted a
   claim.
   - Insurer paid the policy proceeds to Adult Child.

Clearly, the former spouse is treated as having predeceased Decedent (RCW
11.07.010).

   1. Does RCW 48.18.410 make the proceeds of the life insurance policy
   exempt from Decedent's debts? It certainly seems to, as Adult Child is a
   "payee" if not a "lawful beneficiary" of the policy.
   2. Does it depend on the existence of a "facility-of-payment" clause
   under .410(4)?
   3. Are the proceeds not an asset of the estate? This seems to be the
   logical result if they were payable to the heirs directly.
   4. If the proceeds are not subject to the debts of Decedent and there
   are no other assets in the estate, the estate is insolvent, right?

Thanks in advance.


Spencer A. W. Stromberg
Attorney at Law

1403 S. Grand Blvd., Suite 201-S
Spokane, WA 99203-2278

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