72-34-444. Receipts from sale of timber and related products -- allocation. (1) To the extent that a trustee accounts for receipts from the sale of timber and related products pursuant to this section, the trustee shall allocate the net receipts as follows:
(a) to income to the extent that the amount of timber removed from the land does not exceed the rate of growth of the timber during the accounting periods in which a beneficiary has a mandatory income interest;
(b) to principal to the extent that the amount of timber removed from the land exceeds the rate of growth of the timber or the net receipts are from the sale of standing timber;
(c) to or between income and principal if the net receipts are from the lease of timberland or from a contract to cut timber from land owned by a trust, by determining the amount of timber removed from the land under the lease or contract and applying the rules in subsections (1)(a) and (1)(b);
(d) to principal to the extent that advance payments, bonuses, and other payments are not allocated pursuant to subsection (1)(a), (1)(b), or (1)(c).
(2) In determining net receipts to be allocated under subsection (1), a trustee shall deduct and transfer to principal a reasonable amount for depletion.
(3) This part applies whether or not a decedent or transferor was harvesting timber from the property before it became subject to the trust.
History: En. Sec. 24, 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