The OBA Estates and Trusts section members gathered for our penultimate Brown Bag Lunch of 2021 – and though circumstances dictated that we meet remotely, the conversation was no less engaged and lively. While it seems certain that for the foreseeable future this digital meeting format will remain, it was encouraging to see how our practitioners remain curious and enthusiastic about emerging issues relating to estates and trusts.
The BBL began with a discussion relating to a scenario where a beneficiary had a life interest in a real property owned by a trust, on the condition that he pay all expenses associated with the property, including property insurance. The beneficiary did, in fact, obtain an insurance policy, and was paying all of the premiums. The property suffered water damage, resulting in an insurance claim for the purposes of repairing the water damage. The BBLer dealing with this situation raised an interesting hypothetical question as to whether the beneficiary, or the trust, would be entitled to any excess cash from the insurance claim remaining after the repairs had been completed.
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