Kelly v. Medical Life Insurance

Appellee Joseph Kelly concedes that a constructive trust should be imposed in appellants’ favor on the insurance proceeds at bar. The sole question remaining for our determination is whether the constructive trust is to be imposed on the entire amount of such proceeds, or only on that portion which would be necessary to satisfy James Kelly’s child support obligation. For the following reasons, we conclude that appellants are entitled to the imposition of a constructive trust on the entire amount of the insurance proceeds in this case.

The settlement agreement between Cordelia E. Kelly and…