Montana Code 72-34-445. Increasing income in order to maintain marital deduction
72-34-445. Increasing income in order to maintain marital deduction. (1) If a marital deduction is allowed for all or part of a trust whose assets consist substantially of property that does not provide the spouse with sufficient income from or use of the trust assets and if the amounts that the trustee transfers from principal to income under 72-34-424 and distributes to the spouse from principal pursuant to the terms of the trust are insufficient to provide the spouse with the beneficial enjoyment required to obtain the marital deduction, the spouse may require the trustee to make property productive of income or convert it into productive property or exercise the power under 72-34-424(1) within a reasonable time. The trustee may decide which action or combination of actions to take.
Terms Used In Montana Code 72-34-445
- 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.
- Income: means money or property that a fiduciary receives as current return from a principal asset. See Montana Code 72-34-422
- Marital deduction: The deduction(s) that can be taken in the determination of gift and estate tax liabilities because of the existence of a marriage or marital relationship.
- Property: means real and personal property. See Montana Code 1-1-205
- Trustee: A person or institution holding and administering property in trust.
(2)In cases not governed by subsection (1), proceeds from the sale or other disposition of a trust asset are principal without regard to the amount of income the asset produces during any accounting period.