Montana Code 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.
Terms Used In Montana Code 72-34-430
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. Source: OCC
- Entitlement: A Federal program or provision of law that requires payments to any person or unit of government that meets the eligibility criteria established by law. Entitlements constitute a binding obligation on the part of the Federal Government, and eligible recipients have legal recourse if the obligation is not fulfilled. Social Security and veterans' compensation and pensions are examples of entitlement programs.
- Income: means money or property that a fiduciary receives as current return from a principal asset. See Montana Code 72-34-422
- Income beneficiary: means a person to whom net income of a trust is or may be payable. See Montana Code 72-34-422
- Income interest: means the right of an income beneficiary to receive all or part of net income, whether the trust requires it to be distributed or authorizes it to be distributed in the trustee's discretion. See Montana Code 72-34-422
- Net income: means the total receipts allocated to income during an accounting period minus the disbursements made from income during the accounting period, plus or minus transfers under this chapter to or from income during the accounting period. See Montana Code 72-34-422
- Testator: A male person who leaves a will at death.
- Trustee: A person or institution holding and administering property in trust.
(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.