386.476 Receipts from insurance policies and similar contracts--Exception.
144 words·~1 min read·
/ky/chapter-386/386-476A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
(1)Except as otherwise provided in subsection
(2)of this section, a trustee shall
allocate to principal the proceeds of a life insurance policy or other contract in
which the trust or its trustee is named as 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 insurance policy to
income if the premiums on the policy are paid from income, and to principal if the
premiums are paid from principal.
(2)A trustee shall allocate to income proceeds of a contract that insures the trustee
against loss of occupancy or other use by an income beneficiary, loss of income, or
loss of profits from a business.
(3)This section shall not apply to a contract to which KRS 386.480 applies.