(1) Except as otherwise provided in subsection (2) of this section, 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 ORS 129.308, loss of profits from a business.
(3) This section does not apply to a contract to which ORS 129.355 applies. [2003 c.279 §16]
(Receipts Normally Apportioned)
Section: Previous 129.280 129.300 129.305 129.308 129.310 129.315 129.320 129.325 129.350 129.355 129.360 129.365 129.370 129.375 129.380 NextLast modified: August 7, 2008