72-34-423. Allocation between principal and income -- impartial exercise of discretion. (1) In allocating receipts and disbursements to or between principal and income and with respect to any other matter within the scope of this part, a fiduciary:
(a) shall administer a trust or decedent's estate in accordance with the trust or the will, even if there is a different provision in this part;
(b) may administer a trust or decedent's estate by the exercise of a discretionary power of administration given to the fiduciary by the trust or the will, even if the exercise of the power produces a result different from a result required or permitted by this part and no inference that the fiduciary has improperly exercised the discretion arises from the fact that the fiduciary has made an allocation contrary to a provision of this part;
(c) shall administer a trust or decedent's estate in accordance with this part if the trust or the will does not contain a different provision or does not give the fiduciary a discretionary power of administration; and
(d) shall add a receipt or charge a disbursement to principal to the extent that the trust or the will and this part do not provide a rule for allocating the receipt or disbursement to or between principal and income.
(2) In exercising a discretionary power of administration regarding a matter within the scope of this part, whether granted by a trust, a will, or this part, including the trustee's power to adjust under 72-34-424(1), the fiduciary shall administer the trust or decedent's estate impartially, except to the extent that the trust or the will expresses an intention that the fiduciary shall or may favor one or more of the beneficiaries. The exercise of discretion in accordance with this part is presumed to be fair and reasonable to all beneficiaries.
History: En. Sec. 3, Ch. 506, L. 2003.
Structure Montana Code Annotated
Title 72. Estates, Trusts, and Fiduciary Relationships
Chapter 34. Principal and Income
Part 4. Montana Uniform Principal and Income Act
72-34-413. through 72-34-415 reserved
72-34-417. through 72-34-420 reserved
72-34-423. Allocation between principal and income -- impartial exercise of discretion
72-34-424. Adjustments between principal and income
72-34-426. Proceedings relating to adjustments -- remedy
72-34-427. Application of part
72-34-428. Rules applicable after decedent's death or termination of income interest
72-34-429. Beneficiary's portion of net income -- maintenance of records -- distribution date
72-34-431. Allocation of income receipt or disbursement
72-34-432. Undistributed income -- definition -- payment to beneficiary
72-34-433. Allocation of receipts to income or principal -- entity defined
72-34-434. Allocation of amounts received from specified trusts or estates
72-34-435. Separate accounting records for business or other activity
72-34-436. Amounts allocated to principal
72-34-437. Amounts received from rental property allocation
72-34-438. Interest on obligation to pay money -- allocation
72-34-440. Insubstantial allocation -- allocation of entire amount to principal -- exceptions
72-34-442. Receipts from liquidating assets -- allocation
72-34-443. Receipts from mineral interests and other natural resources -- allocation
72-34-444. Receipts from sale of timber and related products -- allocation
72-34-445. Increasing income in order to maintain marital deduction
72-34-448. Disbursements from income
72-34-449. Disbursements from principal
72-34-451. Transfer from income to principal in anticipation of principal disbursement
72-34-453. Adjustments between principal and income in certain cases