Florida Protects Beneficiaries of Life Insurance Proceeds
The law in Florida states creditors cannot take life insurance proceeds left to a beneficiary in order to satisfy the debts of the insured. Life insurance proceeds should be left either directly to beneficiaries or should be placed in a trust and owned by the trust rather than by the insured. Life insurance proceeds which are left to the estate or become part of the estate before distribution to beneficiaries may not be protected against creditors’ claims.
The law in Florida also protects the cash surrender value of life insurance. Creditors of an individual are not allowed to attach or garnish any part of the cash surrender value of life insurance to satisfy the debts of the insured.