What is a beneficiary supposed to do with the money? Are they obligated to pay funeral costs?

Question

What is a beneficiary supposed to do with the money? Are they obligated to pay funeral costs?

Answer

It's a gift, The beneficiary can do what ever they want with the money.

John

Answer

Beneficiary of what? It depends. If the beneficiary is a beneficiary of a non-probate asset like a joint bank account or life insurance policy where the insured has died, then Attorney Davidson is correct; this is a gift and the beneficiary can do what he/she wishes with the money and is in no way obligated to use it to pay for the burial/funeral of the deceased.

However, if the beneficiary is only named in a will as the beneficiary of a probate asset, then things change. The personal representative for the deceased's estate must pay funeral costs and other just debts out of the assets of the deceased. Only after the debts of the estate are paid would the beneficiary then inherit probate assets.