The combined $759,000 in benefits from alleged murder victim Allison Baden-Clay's insurance policies are unlikely to be distributed until charges faced by her husband have been dealt with, a court has heard.

Gerard Baden-Clay is expected to face a committal proceeding next month to determine if he will stand trial for his wife's murder.

In the Federal Court in Brisbane on Wednesday, lawyers for insurers Tal Life Limited applied to have no further dealings in the handling of a joint policy that Allison and Gerard Baden-Clay held, involving the sum of $412,267.

Barrister Stewart Webster, for TAL, said the company had abided by the Insurance Act and paid the amount to the Federal Court.

He said no beneficiary was named on the policy but as a joint holder Gerard Baden-Clay had made a claim shortly after the body of his wife was found last year, 10 days after she disappeared in April.

Since then Gerard Baden-Clay had been charged with murder.

He said the Baden-Clays had held another insurance policy with Suncorp which had been subject of a Federal Court hearing last year.

Mr Webster wants the TAL insurance policy money to be treated in the same way, with the company granted leave to have no further dealings in the matter.

In the Federal Court late last year, Suncorp Life and Superannuation Ltd paid $347,287 to be held until criminal proceedings against Gerard Baden-Clay have been finalised.

Solicitor Paul Betros, representing the executor of Allison Baden-Clay's estate, did not oppose the application by TAL.

He said ultimately the distribution of the funds could best be served by having the TAL and Suncorp money dealt with in one application.

Mr Betros said he understood if Gerard Baden-Clay was found guilty of murder he could not benefit from the insurance money.

Justice John Dowsett agreed to grant the application by TAL but not before he raised some issues about what he felt should happen to the money.

"I am not sure that courts are equipped to work as a bank," he said, expressing the opinion the money might better be managed in a bank account set up by solicitors.

However, he said in six months time it might be clearer what stage the criminal proceedings had reached.

Justice Dowsett adjourned the matter of what to do with the money.


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