68-10-407. INSURANCE POLICIES AND SIMILAR CONTRACTS. (a) Except as otherwise provided in subsection (b) of this section, a trustee shall allocate to principal the proceeds of a life insurance policy or other contract in which the trust or its trustee is named as beneficiary, including a contract that insures the trust or its trustee against loss for damage to, destruction of, or loss of title to a trust asset. The trustee shall allocate dividends on an insurance policy to income if the premiums on the policy are paid from income, and to principal if the premiums are paid from principal.
(b) A trustee shall allocate to income proceeds of a contract that insures the trustee against loss of occupancy or other use by an income beneficiary, loss of income or, subject to section 68-10-403, Idaho Code, loss of profits from a business.
(c) This section does not apply to a contract to which section 68-10-409, Idaho Code, applies.
History:
[68-10-407, added 2001, ch. 261, sec. 2, p. 954.]
Structure Idaho Code
Title 68 - TRUSTS AND FIDUCIARIES
Chapter 10 - UNIFORM PRINCIPAL AND INCOME ACT
Part 4 - ALLOCATION OF RECEIPTS DURING ADMINISTRATION OF TRUST
Section 68-10-401 - CHARACTER OF RECEIPTS.
Section 68-10-402 - DISTRIBUTION FROM TRUST OR ESTATE.
Section 68-10-403 - BUSINESS AND OTHER ACTIVITIES CONDUCTED BY TRUSTEE.
Section 68-10-404 - PRINCIPAL RECEIPTS.
Section 68-10-405 - RENTAL PROPERTY.
Section 68-10-406 - OBLIGATION TO PAY MONEY.
Section 68-10-407 - INSURANCE POLICIES AND SIMILAR CONTRACTS.
Section 68-10-408 - INSUBSTANTIAL ALLOCATIONS NOT REQUIRED.
Section 68-10-409 - DEFERRED COMPENSATION, ANNUITIES, AND SIMILAR PAYMENTS.
Section 68-10-410 - LIQUIDATING ASSET.
Section 68-10-411 - MINERALS, WATER AND OTHER NATURAL RESOURCES.
Section 68-10-413 - PROPERTY NOT PRODUCTIVE OF INCOME.