asechrest
En-Route
I know we've got some legal geeks here, so I thought I'd throw this up.
I am trying understanding some elements trust law. My research indicates that a trust is really a legal construct that bifurcates ownership, with legal title being held by the trustees and equity title being held by the beneficiary. Further, my understanding is that the trustees may be "personally" liable and sued as individuals if suit is filed against the trust. I've seen some case law that says when you sue a trust, you actually sue the trustees.
I am trying to understand two things: which individuals or entities have insurable interest in the trust property, and of those individuals or entities, who has the most interest. Based on my reading, I think I could argue that the trustees and beneficiary all have insurable interest. (And maybe the grantor?). But it would seem that the trustees are most important. But IANAL.
I guess I am essentially asking, if you had to form a hierarchy of trust entities, from most important to insure vs. least important to insure, how would it be ordered?
(As background: I'm in a heated argument among insurance folks, with some saying only the beneficiary has insurable interest. I believe otherwise.)
I am trying understanding some elements trust law. My research indicates that a trust is really a legal construct that bifurcates ownership, with legal title being held by the trustees and equity title being held by the beneficiary. Further, my understanding is that the trustees may be "personally" liable and sued as individuals if suit is filed against the trust. I've seen some case law that says when you sue a trust, you actually sue the trustees.
I am trying to understand two things: which individuals or entities have insurable interest in the trust property, and of those individuals or entities, who has the most interest. Based on my reading, I think I could argue that the trustees and beneficiary all have insurable interest. (And maybe the grantor?). But it would seem that the trustees are most important. But IANAL.
I guess I am essentially asking, if you had to form a hierarchy of trust entities, from most important to insure vs. least important to insure, how would it be ordered?
(As background: I'm in a heated argument among insurance folks, with some saying only the beneficiary has insurable interest. I believe otherwise.)