Florida Bankruptcy Laws on Life Insurance Policies

Fla.Stat. §222.13 provides, in part, "Life insurance policies & disposition of proceeds. (1) Whenever any person residing in the state shall die leaving insurance on his or her life, the said insurance shall inure exclusively to the benefit of the person for whose use and benefit such insurance is designated in the policy, and the proceeds thereof shall be exempt from the claims of creditors of the insured unless the insurance policy or a valid assignment thereof provides otherwise. Notwithstanding the foregoing, whenever the insurance, by designation or otherwise, is payable to the insured or to the insured's estate or to his or her executors, administrators, or assigns, the insurance proceeds shall become a part of the insured's estate for all purposes and shall be administered by the personal representative of the estate of the insured in accordance with the probate laws of the state in like manner as other assets of the insured's estate."

Operation of Florida bankruptcy laws

Debtors frequently designate their own estates as beneficiaries under terms of policies. With the assistance of qualified legal counsel, an assignment may be possible to avoid forfeiture, subject to limitations on transfers and conveyances set forth in the Code.

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