Montana § 72-34-446 Transactions In Derivatives -- Allocations Of Receipts And Disbursements -- Options To Buy Or Sell Property -- Allocation Of Amounts Received Or Paid

Montana Statutes

§ 72-34-446 — Transactions In Derivatives -- Allocations Of Receipts And Disbursements -- Options To Buy Or Sell Property -- Allocation Of Amounts Received Or Paid

Montana § 72-34-446

Title 72ESTATES, TRUSTS, AND FIDUCIARY RELATIONSHIPS

Ch. 34PRINCIPAL AND INCOME

Part 4Montana Uniform Principal and Income Act

This text of Montana § 72-34-446 (Transactions In Derivatives -- Allocations Of Receipts And Disbursements -- Options To Buy Or Sell Property -- Allocation Of Amounts Received Or Paid) is published on Counsel Stack Legal Research, covering Montana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Mont. Code Ann. § 72-34-446 (2026).

Text

72-34-446 . Transactions in derivatives -- allocations of receipts and disbursements -- options to buy or sell property -- allocation of amounts received or paid.

(1)In this section, "derivative" means a contract or financial instrument or a combination of contracts and financial instruments that gives a trust the right or obligation to participate in some or all changes in the price of a tangible or intangible asset or group of assets or changes in a rate, an index of prices or rates, or other market indicator for an asset or a group of assets.

(2)To the extent that a trustee does not account under 72-34-435 for transactions in derivatives, the trustee shall allocate to principal receipts from and disbursements made in connection with those transactions.

(3)If a trustee grants an optio

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72-34-446 . Transactions in derivatives -- allocations of receipts and disbursements -- options to buy or sell property -- allocation of amounts received or paid. (1) In this section, "derivative" means a contract or financial instrument or a combination of contracts and financial instruments that gives a trust the right or obligation to participate in some or all changes in the price of a tangible or intangible asset or group of assets or changes in a rate, an index of prices or rates, or other market indicator for an asset or a group of assets.
(2) To the extent that a trustee does not account under 72-34-435 for transactions in derivatives, the trustee shall allocate to principal receipts from and disbursements made in connection with those transactions.
(3) If a trustee grants an option to buy property from the trust, whether or not the trust owns the property when the option is granted, grants an option that permits another person to sell property to the trust, or acquires an option to buy property for the trust or an option to sell an asset owned by the trust and the trustee or other owner of the asset is required to deliver the asset if the option is exercised, an amount received for granting the option must be allocated to principal. An amount paid to acquire the option must be paid from principal. A gain or loss realized upon the exercise of an option, including an option granted to a settlor of the trust for services rendered, must be allocated to principal.