75A-5-407. Receipts not normally apportioned -- Insurance policy or contract.
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Effective 9/1/2024
75A-5-407. Receipts not normally apportioned -- Insurance policy or contract.
(1)This section does not apply to a contract to which Section 75A-5-409 applies.
(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.
(b)The fiduciary shall allocate dividends on an insurance policy:
(i)to income, to the extent premiums on the policy are paid from income; and
(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:
(a)occupancy or other use by a current income beneficiary;
(b)income; or
(c)subject to Section 75A-5-403 , profits from a business.
Renumbered and Amended by Chapter 364 , 2024 General Session