Not sure of your state, but in mine a falling tree that results in damages would be paid for by your neighbor's insurance. In almost 100% of the cases, their insurance company sues you and they recoup the cost.
In the case where there is no damage (ie falling in a lake), if it is on someone else's property line that it falls they can sue you to remove it. I imagine it would cost more for you to have it removed from a lake than a controlled fall on your property and disposal.
If nothing else, think of the animosity if they go to put in their dock and your tree is laying there in the way and you saying it isn't your problem! I'd make your life a living hell....
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