In re Estate of Jackson
South Dakota Supreme Court
508 N.W.2d 374 (S.D. 1993)
Mary Jackson conveyed her house to remaindermen Iola Miller and Ileane Brosnan (plaintiff) in 1968 while retaining a life estate, and continued insuring the home until her death in 1991; shortly before her death, the house was substantially damaged in a hailstorm, and her insurer began processing the claim, ultimately paying the proceeds to her estate after her death. Miller (defendant), appointed executrix, split the proceeds evenly between herself and Brosnan, but the estate's attorney argued the proceeds actually belonged to the estate rather than the remaindermen; the probate court agreed with the attorney over Brosnan's objection, and Brosnan appealed.
Whether insurance proceeds paid for storm damage to a home, where the deceased policyholder held only a life estate at the time of the damage, belong to the life tenant's estate or pass directly to the remaindermen who hold the underlying property interest.