|
Absent a written
Agreement between the parties, the Maryland Court cannot require either
spouse to maintain life insurance for the other spouse’s benefit or for
a child’s benefit.
However, parties are free to enter into a written Agreement which
requires life insurance, typically done to insure against the loss of
child support or alimony. In such event, the Court will enforce the
terms of the parties’ Agreement.
When establishing life insurance for the benefit of a minor child, it is
important to establish a Trust to name a trustee who is responsible for
receiving the proceeds on behalf of the minor child.
Without a Trust, the Court can order life insurance proceeds payable to
a minor child to be held in a financial institution until a guardian of
the property is appointed by the Court or the child attains age 18, when
the funds will be paid to the child.
Back to index of articles
|
