You are here

Court Can’t Limit Use of Trust Income To Coverage of Deficits at Hospital

Court Can’t Limit Use of Trust Income To Coverage of Deficits at Hospital

Court Can’t Limit Use of Trust Income To Coverage of Deficits at Hospital

Trial court sought to assure income would be used only for local hospital after its inclusion in larger system
When a bank trustee asked for guidance on how to distribute income from eight testamentary trusts left for the benefit of Bloomsburg Hospital in Pennsylvania, there wasn’t much debate about authorizing continued use of the trust income for the Hospital, even though the Hospital had been absorbed within a large regional healthcare system. But the trial court wanted to assure that the income would not be used for other facilities within the system. It limited use of the income to making up deficits at the Hospital and ordered that income not necessary for that purpose be placed in a “pour over” trust to be utilized to make up deficits in the future. An intermediate appellate court has ruled...

lock The full text of this article is available to paid subscribers only. Login or subscribe to read more

 

Sign-up for our weekly Q&A; get a free report on electioneering