My mother recently passed away and left approx. $3,000. In life insurance. This amount was used to cover her final expenses which totaled $5,700. The remainder was paid by me. Was I under any obligation to pay her remaining credit card debt first out of the proceeds ? Or was I legally entitled to use all of the money to pay her final expenses. My mother had no other assets.. there is no "estate".. . she was in a nursing home which was paid for by medicare and medicade. Also, I reside in New Jersey if that is relevant. Thank you

I'm not sure, but that does not sound right. I don't see how the credit card company would even know that she passed unless you told them. In that case, all they should have to know is that she passed. I don't think that they would know about the policy unless you told them.

If you were the beneficiary of that policy then it was outside her estate and you could do with it as you wished.

The nursing home or you should be sending back any bills unopened with RETURN TO SENDER, ADDRESSEE DECEASED marked on the envelope.

Thanks Scott, I will let the credit card companies know she is deceased now. I just didn't want to say anything until I was sure they had no claim to the insurance.