Legal Question in Real Estate Law in Illinois

The house is in a land trust in Illinois with several beneficiaries to the trust. One sibling, also a beneficiary of the trust, is living in the home. The homeowner's insurance is in this sibling's name only.

If someone were to get injured on the property, could all of the beneficiaries of the trust be sued, or could only the sibling living there be sued? Or, are the beneficiaries protected from a lawsuit completely because the house is in trust?

Thank you.


Asked on 1/15/14, 4:35 am

1 Answer from Attorneys
Stephen Messutta

All sued - yes. The trust will not prevent a lawsuit based on negligence of the owners and/or occupants, and all beneficiaries are responsible even if only 1 lives there depending on how the injury occurs. The liability insurance is what protects everyone. While it may be only in the name of the beneficiary living in the house, it should name the trust and all other beneficiaries as additional named insureds. Show the policy and all endorsements to your own insurance agent to make sure it protects everyone.

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Answered on 1/15/14, 10:56 am


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