A daughter of a man who sold his interest in a trust that held a $10 million life insurance policy may get to contest the transaction in court.
U.S. District Judge Denny Chin has handed down a ruling that says the daughter, Linda Angel, has enough of a claim for the case, Life Product Clearing L.L.C. vs. Linda Angel vs. Leon Lobel Insurance Trust and Jonathan S. Berck, trustee (No. 07 Civ. 475 (D.C.), to go to trial.
Angel’s father, Leon Lobel, a retired, 77-year-old butcher, established the Leon Lobel Insurance Trust and named himself beneficiary Nov. 15, 2005.
Lobel applied for a $10 million life insurance policy and designated the trust as the sole beneficiary, then, 6 days later, he sold his interest in the trust and any rights to the policy proceeds to Life Product Clearing L.L.C., New York.
Lobel received $300,000 in cash. He died Jan. 6, 2006. About a year later, Lincoln Life & Annuity Company of New York paid $10,712,328.77 to the trust, according to court documents.
A dispute arose when LPC claimed the benefits paid to the trust.
Lobel’s daughter, Linda Angel, filed a counterclaim, and she filed a complaint contending that Lobel could not afford to keep the life insurance policy. She sought a declaration that the trust is void and that Lobel’s estate should receive the death benefits.
Chin writes in his ruling that the issue at hand is whether the facts of the case provide a basis for Angel’s claim that LPC was a stranger to Lobel and that the transaction was essentially a wager on his death.