As reported by Robin Miller of CBAR, an Indiana Insurance policy was exempt where beneficiaries were debtor’s non-dependent adult children.
Under Indiana law insurance upon the life of any person, as well as the proceeds or avails of such insurance, including cash surrender value, “which name[s] as beneficiary … the spouse, children, or any relative dependent upon such person” is exempt from the claims of the insured’s creditors, dependency is not required for the exemption so long as the beneficiary is the insured’s spouse or child; it only becomes necessary if the beneficiary is some other relative of the insured. According, here the debtor could exempt the cash value of a life insurance policy under which the debtor’s adult children were the beneficiaries, even though the children were not dependents of the debtor.
In re Spears, 2014 WL 295172 (Bankr. N.D. Ind., Jan. 9, 2014)
(case no. 1:13-bk-11972) (Chief Bankruptcy Judge Robert E. Grant)