In short: The Estate of Albart v. U.S. Bank argument (Fla. 5th DCA, No. 5D24-2854) involves an estate, a revocable trust, a life insurance trust, and a bank acting as securities intermediary for an investor that held a policy on the decedent’s life. Related federal litigation involved a claim that the policy lacked insurable interest. We haven’t located a published Florida appellate decision.
Some life insurance policies end up owned by investors, not families. When the insured dies, the estate may claim the investors had no right to the proceeds.
The Case as Argued
The appeal, docketed in October 2024, involves the estate of Edward Albart and a dispute over estate assets, a revocable trust, and a life insurance trust, with a bank acting as securities intermediary and an investment fund as parties. In separate federal litigation, the estate sued an investor and the bank, alleging a $9 million policy issued in 2005 was a stranger-originated (STOLI) policy lacking insurable interest; a federal court in Delaware declined to abstain in 2021. Whether the Florida appeal turns on the same theory isn’t confirmed.
Outcome: We have not located a published decision for this appeal. Many appeals end in an unpublished affirmance or a dismissal. Check the court’s online docket before relying on any result. The case facts below come from the oral argument, not from a court opinion.
Background: Life Settlements and STOLI
- A life settlement is a sale of an existing policy to an investor, who pays premiums and collects the death benefit.
- A STOLI policy is one procured from the start for investors who lack an insurable interest in the insured’s life. Some states let the insured’s estate recover the death benefit from the investor.
- Florida law requires an insurable interest at the time a policy is issued (§ 627.404).
- Banks often hold policies as "securities intermediaries" for investors, which is why they appear as defendants.
Lessons for Families
- If a relative sold or was induced to take out a policy for investors, ask how the policy was originated.
- Personal representatives should identify every policy on the decedent’s life, including ones the family doesn’t own.
- These claims involve choice-of-law and timing issues; get advice early.
Watch the Oral Argument
This is the recording of the actual oral argument, posted on the channel. We have not located a published decision in this appeal, so treat the argument as illustration, not as the court’s ruling.
Florida Estate Appeal: Life Insurance Trust & Probate Disputes Explained
Go Deeper
- The Florida Probate Process Step by Step: What the Personal Representative Must Do and the 12-Month Clock
- When a Revocable Trust Doesn’t Work: Unfunded Trusts, the Death of the Trust Owner, and Trust Litigation in Florida
Frequently Asked Questions
What is a securities intermediary in life insurance?
A bank or custodian that holds a policy on behalf of an investor, often named as owner or beneficiary of record.
What is a STOLI policy?
Stranger-originated life insurance: a policy taken out for investors who lack an insurable interest in the insured’s life.
Can an estate recover life insurance proceeds paid to an investor?
In some states, if the policy lacked insurable interest at issuance. The answer depends on governing law.
What was the outcome in Estate of Albart?
We have not located a published decision. Check the Fifth District docket for No. 5D24-2854.
Talk to a Florida probate litigation lawyer
Weidner Law, P.A. handles Florida probate litigation and appeals from St. Petersburg. If you need a probate appeal lawyer, call (727) 954-8752 or email weidner@mattweidnerlaw.com.
Read the law yourself, free: the full Florida Probate Code and Probate Rules and the Florida Trust Code are on floridarules.net.
This article is general information about Florida law, not legal advice about your situation. Reading it, watching the videos, or contacting the firm does not create an attorney-client relationship. Every case turns on its own facts, and past results do not guarantee a similar outcome. The hiring of a lawyer is an important decision that should not be based solely upon advertisements.
