22-3-407 - Receipts not normally apportioned -- Insurance policies and similar contracts.
22-3-407. Receipts not normally apportioned -- Insurance policies and similarcontracts.
(1) Except as otherwise provided in Subsection (2), a trustee shall allocate to principalthe proceeds of a life insurance policy or other contract in which the trust or its trustee is namedas 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 insurancepolicy to income if the premiums on the policy are paid from income, and to principal if thepremiums are paid from principal.
(2) A trustee shall allocate to income proceeds of a contract that insures the trusteeagainst loss of occupancy or other use by an income beneficiary, loss of income, or, subject toSection 22-3-403, loss of profits from a business.
(3) This section does not apply to a contract to which Section 22-3-409 applies.
Enacted by Chapter 285, 2004 General Session