Not sure how things were divided when his estate was settled, but I remembered this story and did a quick Google search:
"Oklahoma State University implemented a unique fundraising program called the "Gift of a Lifetime" in 2007, which used life insurance policies to fund future donations to its athletic department. The idea originated from billionaire alumnus Boone Pickens, who had previously made significant donations to the university. Under this program, Oklahoma State purchased $10 million life insurance policies on 25 of its supporters, primarily donors and season-ticket holders aged between 65 and 85. The university paid the insurance premiums—projected to total $20 million, financed through credit—and was named as the beneficiary of the policies.
The program was designed to provide long-term financial stability by using the proceeds from the policies to endow athletic scholarships, fund facilities, and support operations. Athletic director Mike Holder described it as the largest known use of life insurance for fundraising by a college athletic department. The initiative was facilitated by Oklahoma state law, which permits charitable institutions to be named as beneficiaries of life insurance contracts even without a traditional insurable interest, as long as no individual is named as a beneficiary.
Although the program generated interest from other schools like Texas Tech and Oregon, it was ultimately discontinued. By its conclusion, OSU Athletics Inc. had spent approximately $33 million on premiums. The funds from the policies were intended to support long-term goals, including facility upgrades and scholarship endowments, complementing other major gifts such as Pickens’ $165 million donation in 2006."