Baker v. Ayres and Baker Pole and Post, Inc.

KITE, Justice.

[¶ 1] After Alvin Baker passed away, the proceeds of a life insurance policy issued in his name were delivered to the named beneficiary, his wife, Joan Baker. Mrs. Baker then sought payment from Mr. Baker’s business associates, Larry and Karan Ayres, and the corporation in which he and Mr. Ayres were the sole shareholders, Ayres and Baker Pole and Post, Inc. (the Company) for the value of Mr. Baker’s shares in the Company. The Ayres and the Company asserted that the proceeds of Mr. Baker’s life insurance policy were intended to be applied against the value of his interest in the…