reglab/statecodes huggingface dataset:
2023 Montana Code Annotated › Title 72. Estates, Trusts, and Fiduciary Relationships › Chapter 34. Principal and Income › Part 4. Montana Uniform Principal and Income Act › 72-34-423. Allocation between principal and income -- impartial exercise of discretion

72-34-423. Allocation between principal and income -- impartial exercise of discretion.
(1) In allocating receipts and disbursements to or between principal and income and with respect to any other matter within the scope of this part, a fiduciary:
(a) shall administer a trust or decedent's estate in accordance with the trust or the will, even if there is a different provision in this part;
(b) may administer a trust or decedent's estate by the exercise of a discretionary power of administration given to the fiduciary by the trust or the will, even if the exercise of the power produces a result different from a result required or permitted by this part and no inference that the fiduciary has improperly exercised the discretion arises from the fact that the fiduciary has made an allocation contrary to a provision of this part;
(c) shall administer a trust or decedent's estate in accordance with this part if the trust or the will does not contain a different provision or does not give the fiduciary a discretionary power of administration; and
(d) shall add a receipt or charge a disbursement to principal to the extent that the trust or the will and this part do not provide a rule for allocating the receipt or disbursement to or between principal and income.
(2) In exercising a discretionary power of administration regarding a matter within the scope of this part, whether granted by a trust, a will, or this part, including the trustee's power to adjust under 72-34-424(1), the fiduciary shall administer the trust or decedent's estate impartially, except to the extent that the trust or the will expresses an intention that the fiduciary shall or may favor one or more of the beneficiaries. The exercise of discretion in accordance with this part is presumed to be fair and reasonable to all beneficiaries.
History: En. Sec. 3, Ch. 506, L. 2003.
2023 Montana Code Annotated › Title 72. Estates, Trusts, and Fiduciary Relationships › Chapter 34. Principal and Income › Part 4. Montana Uniform Principal and Income Act › 72-34-426. Proceedings relating to adjustments -- remedy

72-34-426. Proceedings relating to adjustments -- remedy.
In a proceeding with respect to a trustee's exercise or nonexercise of the power to make an adjustment under 72-34-424, the sole remedy is to direct, deny, or revise an adjustment between principal and income.
History: En. Sec. 6, Ch. 506, L. 2003.
2023 Montana Code Annotated › Title 72. Estates, Trusts, and Fiduciary Relationships › Chapter 34. Principal and Income › Part 4. Montana Uniform Principal and Income Act › 72-34-427. Application of part

72-34-427. Application of part.
This part applies to every trust or decedent's estate existing on or after October 1, 2003, except as otherwise expressly provided in the trust or will or in this part.
History: En. Sec. 7, Ch. 506, L. 2003.
2023 Montana Code Annotated › Title 72. Estates, Trusts, and Fiduciary Relationships › Chapter 34. Principal and Income › Part 4. Montana Uniform Principal and Income Act › 72-34-429. Beneficiary's portion of net income -- maintenance of records -- distribution date

72-34-429. Beneficiary's portion of net income -- maintenance of records -- distribution date.
(1) Each beneficiary described in 72-34-428(4) is entitled to receive a portion of the net income equal to the beneficiary's fractional interest in undistributed principal assets, using values as of the distribution dates and without reducing the values by any unpaid principal obligations.
(2) If a fiduciary does not distribute all of the collected but undistributed net income to each beneficiary as of a distribution date, the fiduciary shall maintain appropriate records showing the interest of each beneficiary in that net income.
(3) The distribution date for purposes of this section may be the date as of which the fiduciary calculates the value of the assets if that date is reasonably near the date on which assets are actually distributed.
History: En. Sec. 9, Ch. 506, L. 2003.
2023 Montana Code Annotated › Title 72. Estates, Trusts, and Fiduciary Relationships › Chapter 34. Principal and Income › Part 4. Montana Uniform Principal and Income Act › 72-34-430. Beneficiary's entitlement to net income -- assets subject to trust -- assets subject to successive income interest -- termination of income interest

72-34-430. Beneficiary's entitlement to net income -- assets subject to trust -- assets subject to successive income interest -- termination of income interest.
(1) An income beneficiary is entitled to net income from the date on which the income interest begins. An income interest begins on the date specified in the trust or, if no date is specified, on the date an asset becomes subject to a trust or successive income interest.
(2) An asset becomes subject to a trust at the following times:
(a) in the case of an asset that is transferred to a trust during the transferor's life, on the date it is transferred to the trust;
(b) in the case of an asset that becomes subject to a trust by reason of a will, even if there is an intervening period of administration of the testator's estate, on the date of the testator's death; or
(c) in the case of an asset that is transferred to a fiduciary by a third party because of the individual's death, on the date of the individual's death.
(3) An asset becomes subject to a successive income interest on the day after the preceding income interest ends, as determined under subsection (4), even if there is an intervening period of administration to wind up the preceding income interest.
(4) An income interest ends on the day before an income beneficiary dies or another terminating event occurs or on the last day of a period during which there is no beneficiary to whom a trustee may distribute income.
History: En. Sec. 10, Ch. 506, L. 2003.
2023 Montana Code Annotated › Title 72. Estates, Trusts, and Fiduciary Relationships › Chapter 34. Principal and Income › Part 4. Montana Uniform Principal and Income Act › 72-34-431. Allocation of income receipt or disbursement

72-34-431. Allocation of income receipt or disbursement.
(1) A trustee shall allocate an income receipt or disbursement other than one to which 72-34-428(1) applies to principal if its due date occurs before a decedent dies in the case of an estate or before an income interest begins in the case of a trust or successive income interest.
(2) A trustee shall allocate an income receipt or disbursement to income if its due date occurs on or after the date on which a decedent dies or an income interest begins and it is a periodic due date. An income receipt or disbursement must be treated as accruing from day to day if its due date is not periodic or it has no due date. The portion of the receipt or disbursement accruing before the date on which a decedent dies or an income interest begins must be allocated to principal, and the balance must be allocated to income.
(3) An item of income or an obligation is due on the date the payer is required to make a payment. If a payment date is not stated, there is no due date for the purposes of this part. Distributions to shareholders or other owners from an entity to which 72-34-433 applies are considered to be due on the date fixed by the entity for determining who is entitled to receive the distribution or, if no date is fixed, on the declaration date for the distribution. A due date is periodic for receipts or disbursements that must be paid at regular intervals under a lease or an obligation to pay interest or if an entity customarily makes distributions at regular intervals.
History: En. Sec. 11, Ch. 506, L. 2003.
2023 Montana Code Annotated › Title 72. Estates, Trusts, and Fiduciary Relationships › Chapter 34. Principal and Income › Part 4. Montana Uniform Principal and Income Act › 72-34-432. Undistributed income -- definition -- payment to beneficiary

72-34-432. Undistributed income -- definition -- payment to beneficiary.
(1) (a) For the purposes of this section, "undistributed income" means net income received before the date on which an income interest ends.
(b) The term does not include an item of income or expense that is due or accrued or net income that has been added or is required to be added to principal by the trust.
(2) Except as provided in subsection (3), on the date when a mandatory income interest ends, the trustee shall pay to a mandatory income beneficiary who survives that date or to the estate of a deceased mandatory income beneficiary whose death causes the interest to end the beneficiary's share of the undistributed income that is not disposed of under the trust.
(3) If immediately before the income interest ends, the beneficiary under subsection (2) has an unqualified power to revoke more than 5% of the trust, the undistributed income from the portion of the trust that may be revoked must be added to principal.
(4) When a trustee's obligation to pay a fixed annuity or a fixed fraction of the value of the trust's assets ends, the trustee shall prorate the final payment.
History: En. Sec. 12, Ch. 506, L. 2003.
2023 Montana Code Annotated › Title 72. Estates, Trusts, and Fiduciary Relationships › Chapter 34. Principal and Income › Part 4. Montana Uniform Principal and Income Act › 72-34-433. Allocation of receipts to income or principal -- entity defined

72-34-433. Allocation of receipts to income or principal -- entity defined.
(1) For the purposes of this section, "entity" means a corporation, partnership, limited liability company, regulated investment company, real estate investment trust, common trust fund, or any other organization in which a trustee has an interest other than a trust or decedent's estate to which 72-34-434 applies, a business or activity to which 72-34-435 applies, or an asset-backed security to which 72-34-447 applies.
(2) Except as otherwise provided in this section, a trustee shall allocate to income money received from an entity.
(3) A trustee shall allocate to principal the following receipts from an entity:
(a) property other than money;
(b) money received in one distribution or a series of related distributions in exchange for part or all of a trust's interest in the entity;
(c) money received in total or partial liquidation of the entity; and
(d) money received from an entity that is a regulated investment company or a real estate investment trust if the money distributed is a capital gain dividend for federal income tax purposes.
(4) For purposes of subsection (3)(c):
(a) money is received in partial liquidation:
(i) to the extent that the entity, at or near the time of a distribution, indicates that it is a distribution in partial liquidation; or
(ii) if the total amount of money and property received in a distribution or series of related distributions is greater than 20% of the entity's gross assets, as shown by the entity's yearend financial statements immediately preceding the initial receipt;
(b) money is not received in partial liquidation, nor may it be taken into account under subsection (4)(a)(ii), to the extent that it does not exceed the amount of income tax that a trustee or beneficiary is required to pay on taxable income of the entity that distributes the money.
(5) A trustee may rely on a statement made by an entity about the source or character of a distribution if the statement is made at or near the time of distribution by the entity's board of directors or other person or group of persons authorized to exercise powers to pay money or transfer property comparable to those of a corporation's board of directors.
History: En. Sec. 13, Ch. 506, L. 2003.
2023 Montana Code Annotated › Title 72. Estates, Trusts, and Fiduciary Relationships › Chapter 34. Principal and Income › Part 4. Montana Uniform Principal and Income Act › 72-34-434. Allocation of amounts received from specified trusts or estates

72-34-434. Allocation of amounts received from specified trusts or estates.
A trustee shall allocate to income an amount received as a distribution of income from a trust or a decedent's estate, other than an interest in an investment entity, in which the trust has an interest other than a purchased interest, and shall allocate to principal an amount received as a distribution of principal from the trust or estate.
History: En. Sec. 14, Ch. 506, L. 2003.
2023 Montana Code Annotated › Title 72. Estates, Trusts, and Fiduciary Relationships › Chapter 34. Principal and Income › Part 4. Montana Uniform Principal and Income Act › 72-34-435. Separate accounting records for business or other activity

72-34-435. Separate accounting records for business or other activity.
(1) If a trustee who conducts a business or other activity determines that it is in the best interest of all the beneficiaries to account separately for the business or other activity instead of accounting for it as part of the trust's general accounting records, the trustee may maintain separate accounting records for its transactions, whether or not its assets are segregated from other trust assets.
(2) A trustee who accounts separately for a business or other activity may determine the extent to which its net cash receipts must be retained for working capital, the acquisition or replacement of fixed assets, and its other reasonably foreseeable needs, and the extent to which the remaining net cash receipts are accounted for as principal or income in the trust's general accounting records. If a trustee sells assets of the business or other activity, other than in the ordinary course of the business or other activity, the trustee shall account for the net amount received as principal in the trust's general accounting records to the extent the trustee determines that the amount received is no longer required in the conduct of the business or other activity.
(3) Businesses and other activities for which a trustee may maintain separate accounting records include the following:
(a) retail, manufacturing, service, and other traditional business activities;
(b) farming;
(c) raising and selling livestock and other animals;
(d) managing rental properties;
(e) extracting minerals and other natural resources;
(f) timber operations; and
(g) activities to which 72-34-446 applies.
History: En. Sec. 15, Ch. 506, L. 2003.
2023 Montana Code Annotated › Title 72. Estates, Trusts, and Fiduciary Relationships › Chapter 34. Principal and Income › Part 4. Montana Uniform Principal and Income Act › 72-34-436. Amounts allocated to principal

72-34-436. Amounts allocated to principal.
A trustee shall allocate to principal:
(1) to the extent not allocated to income under this chapter, assets received from a transferor during the transferor's lifetime, a decedent's estate, a trust with a terminating income interest, or a payer under a contract naming the trust or its trustee as beneficiary;
(2) subject to any contrary rules in 72-34-433 through 72-34-447, money or other property received from the sale, exchange, liquidation, or change in form of a principal asset, including realized profit;
(3) amounts recovered from third parties to reimburse the trust because of disbursements described in 72-34-449(1)(g) or for other reasons to the extent not based on the loss of income;
(4) proceeds of property taken by eminent domain, but a separate award made for the loss of income with respect to an accounting period during which a current income beneficiary had a mandatory income interest is income;
(5) net income received in an accounting period during which there is no beneficiary to whom a trustee may or is required to distribute income; and
(6) other receipts allocated to principal as provided in 72-34-440 through 72-34-447.
History: En. Sec. 16, Ch. 506, L. 2003.
2023 Montana Code Annotated › Title 72. Estates, Trusts, and Fiduciary Relationships › Chapter 34. Principal and Income › Part 4. Montana Uniform Principal and Income Act › 72-34-437. Amounts received from rental property allocation

72-34-437. Amounts received from rental property allocation.
Unless the trustee accounts for receipts from rental property pursuant to 72-34-435, the trustee shall allocate to income an amount received as rent of real or personal property, including an amount received for cancellation or renewal of a lease. An amount received as a refundable deposit, including a security deposit or a deposit that is to be applied as rent for future periods, must be added to principal and held subject to the terms of the lease and is not available for distribution to a beneficiary until the trustee's contractual obligations have been satisfied with respect to that amount.
History: En. Sec. 17, Ch. 506, L. 2003.
2023 Montana Code Annotated › Title 72. Estates, Trusts, and Fiduciary Relationships › Chapter 34. Principal and Income › Part 4. Montana Uniform Principal and Income Act › 72-34-438. Interest on obligation to pay money -- allocation

72-34-438. Interest on obligation to pay money -- allocation.
(1) An amount received as interest, whether determined at a fixed, variable, or floating rate, on an obligation to pay money to the trustee, including an amount received as consideration for prepaying principal, must be allocated to income without any provision for amortization of premium.
(2) An amount received from the sale, redemption, or other disposition of an obligation to pay money to the trustee more than 1 year after it is purchased or acquired by the trustee, including an obligation whose purchase price or its value when it is otherwise acquired is less than its value at maturity, must be allocated to principal. If the obligation matures within 1 year after it is purchased or acquired by the trustee, an amount received in excess of its purchase price or its value when it is otherwise acquired must be allocated to income.
(3) This section does not apply to an obligation to which 72-34-441, 72-34-442, 72-34-443, 72-34-444, 72-34-446, or 72-34-447 applies.
History: En. Sec. 18, Ch. 506, L. 2003.
2023 Montana Code Annotated › Title 72. Estates, Trusts, and Fiduciary Relationships › Chapter 34. Principal and Income › Part 4. Montana Uniform Principal and Income Act › 72-34-439. Life insurance policy proceeds -- proceeds of contracts insuring against certain losses -- allocation

72-34-439. Life insurance policy proceeds -- proceeds of contracts insuring against certain losses -- allocation.
(1) Except as otherwise provided in subsection (2), 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, subject to 72-34-435, loss of profits from a business.
(3) This section does not apply to a contract to which 72-34-441 applies.
History: En. Sec. 19, Ch. 506, L. 2003.
2023 Montana Code Annotated › Title 72. Estates, Trusts, and Fiduciary Relationships › Chapter 34. Principal and Income › Part 4. Montana Uniform Principal and Income Act › 72-34-440. Insubstantial allocation -- allocation of entire amount to principal -- exceptions

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.
History: En. Sec. 20, Ch. 506, L. 2003.
2023 Montana Code Annotated › Title 72. Estates, Trusts, and Fiduciary Relationships › Chapter 34. Principal and Income › Part 4. Montana Uniform Principal and Income Act › 72-34-442. Receipts from liquidating assets -- allocation

72-34-442. Receipts from liquidating assets -- allocation.
(1) In this section, "liquidating asset" means an asset whose value will diminish or terminate because the asset is expected to produce receipts for a period of limited duration. The term includes a leasehold, patent, copyright, royalty right, and right to receive payments under an arrangement that does not provide for the payment of interest on the unpaid balance. The term does not include a payment subject to 72-34-441, natural resources subject to 72-34-443, timber subject to 72-34-444, a derivative or option subject to 72-34-446, an asset subject to 72-34-447, or any asset for which the trustee establishes a reserve for depreciation under 72-34-450.
(2) A trustee shall allocate to income 85% from a liquidating asset and the balance to principal.
History: En. Sec. 22, Ch. 506, L. 2003; amd. Sec. 5, Ch. 513, L. 2005.
2023 Montana Code Annotated › Title 72. Estates, Trusts, and Fiduciary Relationships › Chapter 34. Principal and Income › Part 4. Montana Uniform Principal and Income Act › 72-34-443. Receipts from mineral interests and other natural resources -- allocation

72-34-443. Receipts from mineral interests and other natural resources -- allocation.
(1) To the extent that a trustee accounts for receipts from an interest in minerals or other natural resources pursuant to this section, the trustee shall allocate them as follows:
(a) if received as a nominal bonus, nominal delay rental, or nominal annual rent on a lease, a receipt must be allocated to income;
(b) if received from a production payment, a receipt must be allocated to income if and to the extent that the agreement creating the production payment provides a factor for interest or its equivalent. The balance must be allocated to principal.
(c) if an amount received as a royalty, shut-in-well payment, take-or-pay payment, bonus, or delay rental is more than nominal, 15% must be allocated to principal and the balance to income; and
(d) if an amount is received from a working interest or any other interest in mineral or other natural resources not described in subsection (1)(a), (1)(b), or (1)(c), 15% of the net amount received must be allocated to principal and the balance to income.
(2) An amount received on account of an interest in water that is renewable must be allocated to income. If the water is not renewable, 15% of the amount must be allocated to principal and the balance to income.
(3) This part applies whether or not a decedent or donor was extracting minerals, water, or other natural resources before the interest became subject to the trust.
History: En. Sec. 23, Ch. 506, L. 2003.
2023 Montana Code Annotated › Title 72. Estates, Trusts, and Fiduciary Relationships › Chapter 34. Principal and Income › Part 4. Montana Uniform Principal and Income Act › 72-34-444. Receipts from sale of timber and related products -- allocation

72-34-444. Receipts from sale of timber and related products -- allocation.
(1) To the extent that a trustee accounts for receipts from the sale of timber and related products pursuant to this section, the trustee shall allocate the net receipts as follows:
(a) to income to the extent that the amount of timber removed from the land does not exceed the rate of growth of the timber during the accounting periods in which a beneficiary has a mandatory income interest;
(b) to principal to the extent that the amount of timber removed from the land exceeds the rate of growth of the timber or the net receipts are from the sale of standing timber;
(c) to or between income and principal if the net receipts are from the lease of timberland or from a contract to cut timber from land owned by a trust, by determining the amount of timber removed from the land under the lease or contract and applying the rules in subsections (1)(a) and (1)(b);
(d) to principal to the extent that advance payments, bonuses, and other payments are not allocated pursuant to subsection (1)(a), (1)(b), or (1)(c).
(2) In determining net receipts to be allocated under subsection (1), a trustee shall deduct and transfer to principal a reasonable amount for depletion.
(3) This part applies whether or not a decedent or transferor was harvesting timber from the property before it became subject to the trust.
History: En. Sec. 24, Ch. 506, L. 2003.
2023 Montana Code Annotated › Title 72. Estates, Trusts, and Fiduciary Relationships › Chapter 34. Principal and Income › Part 4. Montana Uniform Principal and Income Act › 72-34-445. Increasing income in order to maintain marital deduction

72-34-445. Increasing income in order to maintain marital deduction.
(1) If a marital deduction is allowed for all or part of a trust whose assets consist substantially of property that does not provide the spouse with sufficient income from or use of the trust assets and if the amounts that the trustee transfers from principal to income under 72-34-424 and distributes to the spouse from principal pursuant to the terms of the trust are insufficient to provide the spouse with the beneficial enjoyment required to obtain the marital deduction, the spouse may require the trustee to make property productive of income or convert it into productive property or exercise the power under 72-34-424(1) within a reasonable time. The trustee may decide which action or combination of actions to take.
(2) In cases not governed by subsection (1), proceeds from the sale or other disposition of a trust asset are principal without regard to the amount of income the asset produces during any accounting period.
History: En. Sec. 25, Ch. 506, L. 2003.
2023 Montana Code Annotated › Title 72. Estates, Trusts, and Fiduciary Relationships › Chapter 34. Principal and Income › Part 4. Montana Uniform Principal and Income Act › 72-34-446. Transactions in derivatives -- allocations of receipts and disbursements -- options to buy or sell property -- allocation of amounts received or paid

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.
History: En. Sec. 26, Ch. 506, L. 2003; amd. Sec. 154, Ch. 264, L. 2013.
2023 Montana Code Annotated › Title 72. Estates, Trusts, and Fiduciary Relationships › Chapter 34. Principal and Income › Part 4. Montana Uniform Principal and Income Act › 72-34-447. Payments from collateral financial assets and payments in exchange for interest in asset-backed security -- allocation

72-34-447. Payments from collateral financial assets and payments in exchange for interest in asset-backed security -- allocation.
(1) In this section, "asset-backed security" means an asset whose value is based upon the right it gives the owner to receive distributions from the proceeds of financial assets that provide collateral for the security. The term includes an asset that gives the owner the right to receive from the collateral financial assets only the interest or other current return or only the proceeds other than interest or current return. The term does not include an asset to which 72-34-433 or 72-34-441 applies.
(2) If a trust receives a payment from interest or other current return and from other proceeds of the collateral financial assets, the trustee shall allocate to income the portion of the payment that the payer identifies as being from interest or other current return and shall allocate the balance of the payment to principal.
(3) If a trust receives one or more payments in exchange for the trust's entire interest in an asset-backed security in one accounting period, the trustee shall allocate the payments to principal. If a payment is one of a series of payments that will result in the liquidation of the trust's interest in the security over more than one accounting period, the trustee shall allocate 10% of the payment to income and the balance to principal.
History: En. Sec. 27, Ch. 506, L. 2003.
2023 Montana Code Annotated › Title 72. Estates, Trusts, and Fiduciary Relationships › Chapter 34. Principal and Income › Part 4. Montana Uniform Principal and Income Act › 72-34-448. Disbursements from income

72-34-448. Disbursements from income.
A trustee shall make the following disbursements from income to the extent that they are not disbursements to which 72-34-428(3)(b) or (3)(c) applies:
(1) except as otherwise ordered by the court, one-half of the regular compensation of the trustee and of any person providing investment advisory or custodial services to the trustee;
(2) except as otherwise ordered by the court, one-half of all expenses for accountings, judicial proceedings, or other matters that involve both the income and remainder interests;
(3) all of the other ordinary expenses incurred in connection with the administration, management, or preservation of trust property and the distribution of income, including interest, ordinary repairs, regularly recurring taxes assessed against principal, and expenses of a proceeding or other matter that concerns primarily the income interest; and
(4) all recurring premiums on insurance covering the loss of a principal asset or the loss of income from or use of the asset.
History: En. Sec. 28, Ch. 506, L. 2003.
2023 Montana Code Annotated › Title 72. Estates, Trusts, and Fiduciary Relationships › Chapter 34. Principal and Income › Part 4. Montana Uniform Principal and Income Act › 72-34-449. Disbursements from principal

72-34-449. Disbursements from principal.
(1) A trustee shall make the following disbursements from principal:
(a) except as otherwise ordered by the court, the remaining one-half of the disbursements described in 72-34-448(1) and (2);
(b) except as otherwise ordered by the court, all of the trustee's compensation calculated on principal as a fee for acceptance, distribution, or termination and disbursements made to prepare property for sale;
(c) payments on the principal of a trust debt;
(d) expenses of a proceeding that concerns primarily principal, including a proceeding to construe the trust or to protect the trust or its property;
(e) premiums paid on a policy of insurance not described in 72-34-448(4) of which the trust is the owner and beneficiary;
(f) estate, inheritance, and other transfer taxes, including penalties, apportioned to the trust; and
(g) disbursements related to environmental matters, including reclamation, assessing environmental conditions, remedying and removing environmental contamination, monitoring remedial activities and the release of substances, preventing future releases of substances, collecting amounts from persons liable or potentially liable for the costs of those activities, penalties imposed under environmental laws or regulations and other payments made to comply with those laws or regulations, statutory or common law claims by third parties, and defending claims based on environmental matters.
(2) If a principal asset is encumbered with an obligation that requires income from that asset to be paid directly to the creditor, the trustee shall transfer from principal to income an amount equal to the income paid to the creditor in reduction of the principal balance of the obligation.
History: En. Sec. 29, Ch. 506, L. 2003.
2023 Montana Code Annotated › Title 72. Estates, Trusts, and Fiduciary Relationships › Chapter 34. Principal and Income › Part 4. Montana Uniform Principal and Income Act › 72-34-450. Assets subject to depreciation -- transfer from income to principal of portion of net cash receipts

72-34-450. Assets subject to depreciation -- transfer from income to principal of portion of net cash receipts.
(1) For purposes of this section, "depreciation" means a reduction in value due to wear, tear, decay, corrosion, or gradual obsolescence of a fixed asset having a useful life of more than 1 year.
(2) A trustee may transfer from income to principal a reasonable amount of the net cash receipts from a principal asset that is subject to depreciation, under generally accepted accounting principles, but may not transfer any amount for depreciation under this section in any of the following circumstances:
(a) as to the portion of real property used or available for use by a beneficiary as a residence or of tangible personal property held or made available for the personal use or enjoyment of a beneficiary;
(b) during the administration of a decedent's estate; or
(c) if the trustee is accounting under 72-34-435 for the business or activity in which the asset is used.
(3) An amount transferred from income to principal need not be held as a separate fund.
History: En. Sec. 30, Ch. 506, L. 2003.
2023 Montana Code Annotated › Title 72. Estates, Trusts, and Fiduciary Relationships › Chapter 34. Principal and Income › Part 4. Montana Uniform Principal and Income Act › 72-34-451. Transfer from income to principal in anticipation of principal disbursement

72-34-451. Transfer from income to principal in anticipation of principal disbursement.
(1) If a trustee makes or expects to make a principal disbursement described in this section, the trustee may transfer an appropriate amount from income to principal in one or more accounting periods to reimburse principal or to provide a reserve for future principal disbursements.
(2) Principal disbursements to which subsection (1) applies include the following, but only to the extent that the trustee has not been and does not expect to be reimbursed by a third party:
(a) an amount chargeable to income but paid from principal because it is unusually large, including extraordinary repairs;
(b) a capital improvement to a principal asset, whether in the form of changes to an existing asset or the construction of a new asset, including special assessments;
(c) disbursements made to prepare property for rental, including tenant allowances, leasehold improvements, and broker's commissions;
(d) periodic payments on an obligation secured by a principal asset to the extent that the amount transferred from income to principal for depreciation is less than the periodic payments; and
(e) disbursements described in 72-34-449(1)(g).
(3) If the asset whose ownership gives rise to the disbursements becomes subject to a successive income interest after an income interest ends, a trustee may continue to transfer amounts from income to principal as provided in subsection (1).
History: En. Sec. 31, Ch. 506, L. 2003.
2023 Montana Code Annotated › Title 72. Estates, Trusts, and Fiduciary Relationships › Chapter 34. Principal and Income › Part 4. Montana Uniform Principal and Income Act › 72-34-452. Payment of taxes

72-34-452. Payment of taxes.
(1) A tax required to be paid by a trustee based on receipts allocated to income must be paid from income.
(2) A tax required to be paid by a trustee based on receipts allocated to principal must be paid from principal, even if the tax is called an income tax by the taxing authority.
(3) A tax required to be paid by a trustee on the trust's share of an entity's taxable income must be paid:
(a) from income to the extent that receipts from the entity are allocated only to income;
(b) from principal to the extent that receipts from the entity are allocated only to principal;
(c) proportionately from principal and income to the extent that receipts from the entity are allocated to both income and principal; and
(d) from principal to the extent that the tax exceeds the total receipts from the entity.
(4) After applying subsections (1) through (3), the trustee shall adjust income or principal receipts to the extent that the trust's taxes are reduced because the trust receives a deduction for payments made to a beneficiary.
History: En. Sec. 32, Ch. 506, L. 2003; amd. Sec. 2, Ch. 285, L. 2011.
2023 Montana Code Annotated › Title 72. Estates, Trusts, and Fiduciary Relationships › Chapter 34. Principal and Income › Part 4. Montana Uniform Principal and Income Act › 72-34-453. Adjustments between principal and income in certain cases

72-34-453. Adjustments between principal and income in certain cases.
(1) A fiduciary may make adjustments between principal and income to offset the shifting of economic interests or tax benefits between income beneficiaries and remainder beneficiaries that arise from any of the following:
(a) elections and decisions, other than those described in subsection (2), that the fiduciary makes from time to time regarding tax matters;
(b) an income tax or any other tax that is imposed upon the fiduciary or a beneficiary as a result of a transaction involving or a distribution from the estate or trust; or
(c) the ownership by a decedent's estate or trust of an interest in an entity whose taxable income, whether or not distributed, is includable in the taxable income of the estate, trust, or a beneficiary.
(2) If the amount of an estate tax marital deduction or charitable contribution deduction is reduced because a fiduciary deducts an amount paid from principal for income tax purposes instead of deducting it for estate tax purposes and as a result estate taxes paid from principal are increased and income taxes paid by a decedent's estate, trust, or beneficiary are decreased, each estate, trust, or beneficiary that benefits from the decrease in income tax shall reimburse the principal from which the increase in estate tax is paid. The total reimbursement must equal the increase in the estate tax to the extent that the principal used to pay the increase would have qualified for a marital deduction or charitable contribution deduction but for the payment. The proportionate share of the reimbursement for each estate, trust, or beneficiary whose income taxes are reduced must be the same as its proportionate share of the total decrease in income tax. An estate or trust shall reimburse principal from income.
History: En. Sec. 33, Ch. 506, L. 2003.
2023 Montana Code Annotated › Title 72. Estates, Trusts, and Fiduciary Relationships › Chapter 34. Principal and Income › Part 5. Liability of Trustees to Beneficiaries (Repealed) › 72-34-501. Repealed

72-34-501. Repealed.
Sec. 162, Ch. 264, L. 2013.
History: En. Sec. 151, Ch. 685, L. 1989.
2023 Montana Code Annotated › Title 72. Estates, Trusts, and Fiduciary Relationships › Chapter 34. Principal and Income › Part 5. Liability of Trustees to Beneficiaries (Repealed) › 72-34-502. Repealed

72-34-502. Repealed.
Sec. 162, Ch. 264, L. 2013.
History: En. Sec. 152, Ch. 685, L. 1989.
2023 Montana Code Annotated › Title 72. Estates, Trusts, and Fiduciary Relationships › Chapter 34. Principal and Income › Part 5. Liability of Trustees to Beneficiaries (Repealed) › 72-34-503. Repealed

72-34-503. Repealed.
Sec. 162, Ch. 264, L. 2013.
History: En. Sec. 153, Ch. 685, L. 1989.
2023 Montana Code Annotated › Title 72. Estates, Trusts, and Fiduciary Relationships › Chapter 34. Principal and Income › Part 5. Liability of Trustees to Beneficiaries (Repealed) › 72-34-504. Repealed

72-34-504. Repealed.
Sec. 162, Ch. 264, L. 2013.
History: En. Sec. 154, Ch. 685, L. 1989.
2023 Montana Code Annotated › Title 72. Estates, Trusts, and Fiduciary Relationships › Chapter 34. Principal and Income › Part 5. Liability of Trustees to Beneficiaries (Repealed) › 72-34-506. Repealed

72-34-506. Repealed.
Sec. 162, Ch. 264, L. 2013.
History: En. Sec. 155, Ch. 685, L. 1989.
2023 Montana Code Annotated › Title 72. Estates, Trusts, and Fiduciary Relationships › Chapter 34. Principal and Income › Part 5. Liability of Trustees to Beneficiaries (Repealed) › 72-34-507. Repealed

72-34-507. Repealed.
Sec. 162, Ch. 264, L. 2013.
History: En. Sec. 156, Ch. 685, L. 1989.
2023 Montana Code Annotated › Title 72. Estates, Trusts, and Fiduciary Relationships › Chapter 34. Principal and Income › Part 5. Liability of Trustees to Beneficiaries (Repealed) › 72-34-508. Repealed

72-34-508. Repealed.
Sec. 162, Ch. 264, L. 2013.
History: En. Sec. 157, Ch. 685, L. 1989.
2023 Montana Code Annotated › Title 72. Estates, Trusts, and Fiduciary Relationships › Chapter 34. Principal and Income › Part 5. Liability of Trustees to Beneficiaries (Repealed) › 72-34-509. Repealed

72-34-509. Repealed.
Sec. 162, Ch. 264, L. 2013.
History: En. Sec. 158, Ch. 685, L. 1989.
2023 Montana Code Annotated › Title 72. Estates, Trusts, and Fiduciary Relationships › Chapter 34. Principal and Income › Part 5. Liability of Trustees to Beneficiaries (Repealed) › 72-34-511. Repealed

72-34-511. Repealed.
Sec. 162, Ch. 264, L. 2013.
History: En. Sec. 159, Ch. 685, L. 1989.
2023 Montana Code Annotated › Title 72. Estates, Trusts, and Fiduciary Relationships › Chapter 34. Principal and Income › Part 5. Liability of Trustees to Beneficiaries (Repealed) › 72-34-512. Repealed

72-34-512. Repealed.
Sec. 162, Ch. 264, L. 2013.
History: En. Sec. 160, Ch. 685, L. 1989.
2023 Montana Code Annotated › Title 72. Estates, Trusts, and Fiduciary Relationships › Chapter 34. Principal and Income › Part 5. Liability of Trustees to Beneficiaries (Repealed) › 72-34-513. Repealed

72-34-513. Repealed.
Sec. 162, Ch. 264, L. 2013.
History: En. Sec. 161, Ch. 685, L. 1989; amd. Sec. 35, Ch. 592, L. 1995.
2023 Montana Code Annotated › Title 72. Estates, Trusts, and Fiduciary Relationships › Chapter 34. Principal and Income › Part 5. Liability of Trustees to Beneficiaries (Repealed) › 72-34-514. Repealed

72-34-514. Repealed.
Sec. 162, Ch. 264, L. 2013.
History: En. Sec. 162, Ch. 685, L. 1989; amd. Sec. 2483, Ch. 56, L. 2009.
2023 Montana Code Annotated › Title 72. Estates, Trusts, and Fiduciary Relationships › Chapter 34. Principal and Income › Part 5. Liability of Trustees to Beneficiaries (Repealed) › 72-34-515. Repealed

72-34-515. Repealed.
Sec. 162, Ch. 264, L. 2013.
History: En. Sec. 163, Ch. 685, L. 1989; amd. Sec. 2484, Ch. 56, L. 2009.
2023 Montana Code Annotated › Title 72. Estates, Trusts, and Fiduciary Relationships › Chapter 34. Principal and Income › Part 5. Liability of Trustees to Beneficiaries (Repealed) › 72-34-516. Repealed

72-34-516. Repealed.
Sec. 162, Ch. 264, L. 2013.
History: En. Sec. 164, Ch. 685, L. 1989; amd. Sec. 2485, Ch. 56, L. 2009.
2023 Montana Code Annotated › Title 72. Estates, Trusts, and Fiduciary Relationships › Chapter 34. Principal and Income › Part 5. Liability of Trustees to Beneficiaries (Repealed) › 72-34-517. Repealed

72-34-517. Repealed.
Sec. 162, Ch. 264, L. 2013.
History: En. Sec. 36, Ch. 592, L. 1995.
2023 Montana Code Annotated › Title 72. Estates, Trusts, and Fiduciary Relationships › Chapter 34. Principal and Income › Part 6. Montana Uniform Prudent Investor Act (Repealed) › 72-34-601. Repealed

72-34-601. Repealed.
Sec. 162, Ch. 264, L. 2013.
History: En. Sec. 1, Ch. 484, L. 2003.
2023 Montana Code Annotated › Title 72. Estates, Trusts, and Fiduciary Relationships › Chapter 34. Principal and Income › Part 6. Montana Uniform Prudent Investor Act (Repealed) › 72-34-602. Repealed

72-34-602. Repealed.
Sec. 162, Ch. 264, L. 2013.
History: En. Sec. 2, Ch. 484, L. 2003.
2023 Montana Code Annotated › Title 72. Estates, Trusts, and Fiduciary Relationships › Chapter 34. Principal and Income › Part 6. Montana Uniform Prudent Investor Act (Repealed) › 72-34-603. Repealed

72-34-603. Repealed.
Sec. 162, Ch. 264, L. 2013.
History: En. Sec. 3, Ch. 484, L. 2003.
2023 Montana Code Annotated › Title 72. Estates, Trusts, and Fiduciary Relationships › Chapter 34. Principal and Income › Part 6. Montana Uniform Prudent Investor Act (Repealed) › 72-34-604. Repealed

72-34-604. Repealed.
Sec. 162, Ch. 264, L. 2013.
History: En. Sec. 76, Ch. 685, L. 1989; Sec. 72-34-104, MCA 2001; redes. 72-34-604 by Sec. 14, Ch. 484, L. 2003.
2023 Montana Code Annotated › Title 72. Estates, Trusts, and Fiduciary Relationships › Chapter 34. Principal and Income › Part 6. Montana Uniform Prudent Investor Act (Repealed) › 72-34-605. Repealed

72-34-605. Repealed.
Sec. 162, Ch. 264, L. 2013.
History: En. Sec. 4, Ch. 484, L. 2003.
2023 Montana Code Annotated › Title 72. Estates, Trusts, and Fiduciary Relationships › Chapter 34. Principal and Income › Part 6. Montana Uniform Prudent Investor Act (Repealed) › 72-34-606. Repealed

72-34-606. Repealed.
Sec. 162, Ch. 264, L. 2013.
History: En. Sec. 5, Ch. 484, L. 2003.
2023 Montana Code Annotated › Title 72. Estates, Trusts, and Fiduciary Relationships › Chapter 34. Principal and Income › Part 6. Montana Uniform Prudent Investor Act (Repealed) › 72-34-607. Repealed

72-34-607. Repealed.
Sec. 162, Ch. 264, L. 2013.
History: En. Sec. 6, Ch. 484, L. 2003.
2023 Montana Code Annotated › Title 72. Estates, Trusts, and Fiduciary Relationships › Chapter 34. Principal and Income › Part 6. Montana Uniform Prudent Investor Act (Repealed) › 72-34-608. Repealed

72-34-608. Repealed.
Sec. 162, Ch. 264, L. 2013.
History: En. Sec. 7, Ch. 484, L. 2003.
2023 Montana Code Annotated › Title 72. Estates, Trusts, and Fiduciary Relationships › Chapter 34. Principal and Income › Part 6. Montana Uniform Prudent Investor Act (Repealed) › 72-34-609. Repealed

72-34-609. Repealed.
Sec. 162, Ch. 264, L. 2013.
History: En. Sec. 8, Ch. 484, L. 2003.
2023 Montana Code Annotated › Title 72. Estates, Trusts, and Fiduciary Relationships › Chapter 34. Principal and Income › Part 6. Montana Uniform Prudent Investor Act (Repealed) › 72-34-610. Repealed

72-34-610. Repealed.
Sec. 162, Ch. 264, L. 2013.
History: En. Sec. 9, Ch. 484, L. 2003.
2023 Montana Code Annotated › Title 72. Estates, Trusts, and Fiduciary Relationships › Chapter 35. Trust Code -- Judicial Proceedings Concerning Trusts (Repealed) › Part 1. Jurisdiction and Venue (Repealed) › 72-35-101. Repealed

72-35-101. Repealed.
Sec. 162, Ch. 264, L. 2013.
History: En. Sec. 165, Ch. 685, L. 1989.
2023 Montana Code Annotated › Title 72. Estates, Trusts, and Fiduciary Relationships › Chapter 35. Trust Code -- Judicial Proceedings Concerning Trusts (Repealed) › Part 1. Jurisdiction and Venue (Repealed) › 72-35-102. Repealed

72-35-102. Repealed.
Sec. 162, Ch. 264, L. 2013.
History: En. Sec. 166, Ch. 685, L. 1989.
2023 Montana Code Annotated › Title 72. Estates, Trusts, and Fiduciary Relationships › Chapter 35. Trust Code -- Judicial Proceedings Concerning Trusts (Repealed) › Part 1. Jurisdiction and Venue (Repealed) › 72-35-103. Repealed

72-35-103. Repealed.
Sec. 162, Ch. 264, L. 2013.
History: En. Sec. 167, Ch. 685, L. 1989.