My friend’s ex husband had life insurance policies in his revocable trust that is under California law. He went to a hospital for a long time in Nevada without insurance and died. The policies his trust still hold are whole term policies for his Mother who is alive and well. My friend is a beneficiary of that trust and wonders if creditors might seize the policies to satisfy the debt because the eventual payout of those policies when her former mother in law passes is considerable.
I'd recommend that you discuss this also with the family legal beagle, I live in Texas and cannot say I would have the vaguest ideas of what California tax law or debt collection procedures are, so I couldn't provide you with the direction that your lawyer could.
Thank you for asking such a great question, and good luck!