NJSBA Family Law Section

 View Only

Constructive Trust over "Third-Party" Assets

  • 1.  Constructive Trust over "Third-Party" Assets

    Posted 12-20-2019 03:04 PM
    Need some help with finding a case to support my client's claim to have a constructive trust imposed over a key-man life insurance policy/buy-sell insurance policy.

    Primary argument against granting my client a constructive trust--even though the divorce agreement noted that this policy was a "buy-out" policy and would be pledged for the child's benefit--is that the owner and beneficiary was the insured's company (he had 1% partnership interest) so he had no right to name a beneficiary and did not "own" the policy.  

    Beyond a key-man policy, a case where the Court imposed a Constructive Trust over policies maintained in an Irrevocable Life Insurance Trust or any asset owned/controlled by a third party would be helpful. 

    Cases can be from NJ or ANY state or federal court.  Just need something to further support my argument because in every case I am finding the insured had the authority to name a beneficiary.  

    TIA

    ------------------------------
    David Cardamone Esq.
    Miller & Gaudio, P.C.
    ------------------------------