§ 30-2-14-29 — Life insurance policy proceeds; proceeds of other contracts

(a) Except as otherwise provided in
subsection (b), 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.
(b) 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, subject to section 25 of this chapter,
loss of profits from a business.
(c) This section does not apply to a contract to which section 31 of
this chapter applies.

Legislative History

As added by P.L.84-2002, SEC.2.