By JOHN COTÉ
BEE STAFF WRITER

Published: October 4, 2003, 06:50:14 AM PDT

Laci Peterson's life insurance company has asked a judge to order the more than $250,000 in benefits held in an account until the outcome of her husband's double-murder trial.
Under California law, Scott Peterson is ineligible to collect on the policy if he is found guilty.

He is the only beneficiary on the policy, according to documents Principal Life Insurance Co. filed Friday in Stanislaus County Superior Court.

If he is ineligible, the $256,000 in proceeds and interest goes to Laci Peterson's estate, according to the documents.

Laci Peterson's estate technically hasn't been established yet, said attorney Adam Stewart, who is representing Laci's mother, Sharon Rocha.

Because Laci died without a will, her estate would be her natural mother and father, Stewart said.

"We're obviously going to make a claim to funds on behalf of her family and her estate," he said. "We obviously have a dispute as to who's entitled to them."

He said his client has had no discussion with Peterson or his attorneys on reaching a settlement in the issue.

Bee staff writer John Coté can be reached at 578-2394 or jcote@modbee.com.