The death of a loved one is always an emotionally difficult time. But the loved one’s death also creates many obligations and legal requirements that the deceased successors must accomplish. Often, these processes can be complex and may lead to litigation, especially when money is involved. A recent court case out of the Third Circuit Court of Appeal for Louisiana illustrates these problems.
The case surrounds the life insurance policy of Triston Knoll. Mr. Knoll obtained a life insurance agreement and named his then-wife, Tina Knoll, and their minor child, Andree Knoll, as the primary beneficiaries (the individuals who would receive the payment made upon the death of Mr. Knoll pursuant to the life insurance agreement). The life insurance agreement was designed to pay Andree two-thirds and Ms. Knoll one-third of the total life insurance policy amount. Years after Mr. Knoll obtained the life insurance policy, Ms. Knoll and himself filed and were granted, a divorce. Mr. Knoll passed two years after the divorce.
Upon the death of Mr. Knoll, Ms. Knoll and Andree were supposed to receive the insurance policy payment because both were still both named primary beneficiaries. Andree’s biological mother, Andrienne Theriot, contested the insurance policy payment, arguing that prior to Mr. Knoll’s death he intended to name Ms. Theriot as a beneficiary and therefore Ms. Theriot was entitled to some of the life insurance proceeds. This controversy was brought before a federal district court where the court ruled that Ms. Knoll and Andree were entitled to all of the proceeds from the life insurance policy. While fighting the litigation in federal district court, Ms. Knoll and Andree entered into an agreement where Andree would receive the all of the life insurance proceeds and that those proceeds would be placed in a trust. However, after their success in the federal district court, Ms. Knoll argued that she did not intend to give up her right to some of the life insurance proceeds. Ms. Knoll then decided to file a claim in Louisiana district court.