Montana Code 72-34-436. Amounts allocated to principal
72-34-436. Amounts allocated to principal. A trustee shall allocate to principal:
Terms Used In Montana Code 72-34-436
- Accounting period: means a calendar year unless another 12-month period is selected by a fiduciary. See Montana Code 72-34-422
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. Source: OCC
- Contract: A legal written agreement that becomes binding when signed.
- Decedent: A deceased person.
- Income: means money or property that a fiduciary receives as current return from a principal asset. See Montana Code 72-34-422
- Income beneficiary: means a person to whom net income of a trust is or may be payable. See Montana Code 72-34-422
- Income interest: means the right of an income beneficiary to receive all or part of net income, whether the trust requires it to be distributed or authorizes it to be distributed in the trustee's discretion. See Montana Code 72-34-422
- Mandatory income interest: means the right of an income beneficiary to receive net income that the trust requires the fiduciary to distribute. See Montana Code 72-34-422
- Property: means real and personal property. See Montana Code 1-1-205
- Trustee: A person or institution holding and administering property in trust.
(1)to the extent not allocated to income under this chapter, assets received from a transferor during the transferor’s lifetime, a decedent‘s estate, a trust with a terminating income interest, or a payer under a contract naming the trust or its trustee as beneficiary;
(2)subject to any contrary rules in 72-34-433 through 72-34-447, money or other property received from the sale, exchange, liquidation, or change in form of a principal asset, including realized profit;
(3)amounts recovered from third parties to reimburse the trust because of disbursements described in 72-34-449(1)(g) or for other reasons to the extent not based on the loss of income;
(4)proceeds of property taken by eminent domain, but a separate award made for the loss of income with respect to an accounting period during which a current income beneficiary had a mandatory income interest is income;
(5)net income received in an accounting period during which there is no beneficiary to whom a trustee may or is required to distribute income; and
(6)other receipts allocated to principal as provided in 72-34-440 through 72-34-447.