Kimball Castle Court Decision Reversed

As an update to a prior blog post on a donor intent case, the August 21, 2013 Wall Street Journal reports that a New York State Judge estate planning, estate planning tipsreversed her own prior opinion and ruled that the struggling Brooklyn Hospital must repay tens of millions of dollars it borrowed from an endowment set up by the Othmers, who were early Buffet investors.

The decision orders that a “constructive trust” be established for the benefit of the Othmer endowment. It provides little detail on how this will work.

In this decision the Judge reversed her own prior decision and ordered the funds that were previously borrowed to be restored. In her decision she cited a “legal and moral responsibility to correct her earlier error in approving the merger”.

An unusual decision such as this one which reverses a prior court decision will certainly make major institutions give pause when borrowing against endowed funds.

 

Patricia Annino is a sought after speaker and nationally recognized authority on women and estate planning.  She educates and empowers women to value themselves and their contributions in order to ACCOMPLISH GREAT THINGS in the world – and in so doing PROTECT THEMSELVES, those they love, and the organizations they care about.  Annino recently released an updated version of her successful book, Women and Money: A Practical Guide to Estate Planning to include recent changes in the laws that govern how we protect our assets during and beyond our lifetime.  To download Annino’s FREE eBook, Estate Planning 101 visit, http://www.patriciaannino.com.

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