Allison Baden-Clay.
Allison Baden-Clay. QT file image

Baden-Clay family in bid to close final legal loophole

The family of slain Queensland mother Allison Baden-Clay has launched their final attempt to permanently block her killer husband Gerard from benefiting from her substantial life insurance policies.

More than $800,000 was paid out by Allison's insurers TAL and Suncorp following her 2012 murder but the funds remain frozen pending the outcome of a court decision about who should receive the money.

Gerard Baden-Clay is listed as the sole beneficiary of both policies.

Complete control of Allison's estate was last month handed to her father after the Supreme Court accepted she would not have wanted her murderer to remain the first beneficiary on her will.

But The Federal Court heard on Wednesday, it was unclear whether Allison's life insurance policies were considered estate assets and a ruling would be required before the money could be released to her family.

Lawyers for Allison's family and Gerard Baden-Clay have been given five weeks to make their final submissions.

The next hearing will take place on May 8.