Failure to carry life insurance as required in divorce related to will support will not relieve the estate of the decedent. In a recent case where a decedent’s estate challenged the right of the ex-spouse to enforce an obligation to carry life insurance, a trial court’s decision to force the estate to pay was upheld. As most people with children who are divorced know, the typical settlement agreement or judgment of divorce contains an obligation to carry some amount of life insurance in order to replace a parent’s child support obligation in the event of that parent’s untimely death. Luckily, statistics say that the life insurance will not be needed, but as we all know, sometimes tragedies happen.
Such was the case in the recently decided matter of In the Estate of John P. Boyle,deceased. To view the case, click here In that matter, John P.was divorced from his wife, Susan, in July, 1995. They had one child, John M.Boyle. The judgment of divorce provided for a term of alimony to be paid to Susan as well as for child support on behalf of John M.. At the time of divorce, he was obligated to maintain a $250,000 life insurance policy for his ex-wife and his child. When the alimony obligation was finished, the beneficiary of the policy was to be his son. Relevant to this case was the provision that the decedent was to “continue to provide a life insurance policy through his place of employment in the amount of $250,000…” When the alimony obligation ended, John P, the father changed the beneficiary designation to his son, John M.