What happens to alimony when the person who pays it dies?
Amy Wechsler’s Answer:
Alimony ends when either the party who pays it dies or the party who receives it dies. Many couples provide for life insurance benefits so that, if the payor dies while he or she still has an alimony obligation, the recipient will receive life insurance proceeds. The amount of insurance is usually less than the remaining alimony payments; however, based on a number of factors, including the fact that the recipient would pay taxes on the alimony, but not on the life insurance proceeds and the cost to maintain substantial levels of coverage over the duration of the alimony payments.