72-34-439. Life insurance policy proceeds -- proceeds of contracts insuring against certain losses -- allocation. (1) Except as otherwise provided in subsection (2), 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.
(2) 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 72-34-435, loss of profits from a business.
(3) This section does not apply to a contract to which 72-34-441 applies.
History: En. Sec. 19, 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