insurancetrustees may insure trust property


INSURANCE

Trustees may insure trust property against loss or damage by fire subject to the following conditions:
 
1. The insurance must not exceed the full value of the property;

2. The trustees must not insure if:

  • The trust instrument forbids this, or
  • The trustees are bound to convey the property absolutely to the beneficiary on request;

 
3. Premiums may be paid out of income of the trust property (not necessarily the property insured);

4. Insurance money received is to be treated as capital, and held on the same trusts as the property insured.

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Cost Accounting: insurancetrustees may insure trust property
Reference No:- TGS0178951

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