Utah Code 75A-5-407. Receipts not normally apportioned — Insurance policy or contract
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(1) This section does not apply to a contract to which Section 75A-5-409 applies.
Terms Used In Utah Code 75A-5-407
- 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
- Beneficiary: includes :(3)(a) for a trust:(3)(a)(i) a current beneficiary, including a current income beneficiary and a beneficiary that may receive only principal;(3)(a)(ii) a remainder beneficiary; and(3)(a)(iii) any other successor beneficiary;(3)(b) for an estate, an heir and devisee; and(3)(c) for a life estate or term interest, a person that holds a life estate, term interest, or remainder, or other interest following a life estate or term interest. See Utah Code 75A-5-102
- Contract: A legal written agreement that becomes binding when signed.
- Fiduciary: A trustee, executor, or administrator.
- Fiduciary: includes :
(8)(a) a trustee, trust director as defined in Section75-12-102 , personal representative, life tenant, holder of a term interest, and person acting under a delegation from a fiduciary;(8)(b) a person that holds property for a successor beneficiary whose interest may be affected by an allocation of receipts and expenditures between income and principal; and(8)(c) if there are two or more co-fiduciaries, all co-fiduciaries acting under the terms of the trust and applicable law. See Utah Code 75A-5-102- Income: includes a part of receipts from a sale, exchange, or liquidation of a principal asset to the extent provided in Part 4, Allocation of Receipts. See Utah Code 75A-5-102
- Principal: means property held in trust for distribution to, production of income for, or use by a current or successor beneficiary. See Utah Code 75A-5-102
(2)(2)(a) Except as otherwise provided in Subsection (3), a fiduciary shall allocate to principal the proceeds of a life insurance policy or other contract received by the fiduciary as beneficiary, including a contract that insures against damage to, destruction of, or loss of title to an asset.(2)(b) The fiduciary shall allocate dividends on an insurance policy:(2)(b)(i) to income, to the extent premiums on the policy are paid from income; and(2)(b)(ii) to principal, to the extent premiums on the policy are paid from principal.(3) A fiduciary shall allocate to income proceeds of a contract that insures the fiduciary against loss of:(3)(a) occupancy or other use by a current income beneficiary;(3)(b) income; or(3)(c) subject to Section75A-5-403 , profits from a business.