Montana § 72-34-440 Insubstantial Allocation -- Allocation Of Entire Amount To Principal -- Exceptions

Montana Statutes

§ 72-34-440 — Insubstantial Allocation -- Allocation Of Entire Amount To Principal -- Exceptions

Montana·Title 72 ESTATES, TRUSTS, AND FIDUCIARY RELATIONSHIPS·Ch. 34 PRINCIPAL AND INCOME·Part 4 Montana Uniform Principal and Income Act

72-34-440 . Insubstantial allocation -- allocation of entire amount to principal -- exceptions.

(1)If a trustee determines that an allocation between principal and income required by 72-34-441 , 72-34-442 , 72-34-443 , 72-34-444 , or 72-34-447 is insubstantial, the trustee may allocate the entire amount to principal unless one of the circumstances described in 72-34-424 (2) applies to the allocation. This power may be exercised by a cotrustee in the circumstances described in 72-34-424 (3) and may be released for the reasons and in the manner provided in 72-34-424 (4) and (5).

(2)An allocation is presumed to be insubstantial in either of the following cases:

(a)when the amount of the allocation would increase or decrease net income in an accounting period, as determined before the alloc

Free access — add to your briefcase to read the full text and ask questions with AI

72-34-440 . Insubstantial allocation -- allocation of entire amount to principal -- exceptions. (1) If a trustee determines that an allocation between principal and income required by 72-34-441 , 72-34-442 , 72-34-443 , 72-34-444 , or 72-34-447 is insubstantial, the trustee may allocate the entire amount to principal unless one of the circumstances described in 72-34-424 (2) applies to the allocation. This power may be exercised by a cotrustee in the circumstances described in 72-34-424 (3) and may be released for the reasons and in the manner provided in 72-34-424 (4) and (5).
(2) An allocation is presumed to be insubstantial in either of the following cases:
(a) when the amount of the allocation would increase or decrease net income in an accounting period, as determined before the allocation, by less than 10%; or
(b) when the value of the asset producing the receipt for which the allocation would be made is less than 10% of the total value of the trust's assets at the beginning of the accounting period.
(3) Nothing in this section imposes a duty on the trustee to make an allocation under this section, and the trustee is not liable for failure to make an allocation under this section.

Montana § 72-34-440 (Insubstantial Allocation -- Allocation Of Entire Amount To Principal -- Exceptions) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.