DIVISION 9. TRUST LAW 15000-19403›PART 4. TRUST ADMINISTRATION 16000-16504›CHAPTER 3. Uniform Principal and Income Act 16320-16375›ARTICLE 5.2. Allocation of Receipts During Administration of Trust: Receipts Not Normally Apportioned 16355-16358
§ 16358
California Probate Code · 2018-11 edition · updated 2026-10-04 · California
(a) Except as otherwise provided in subdivision (b), 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.
(b) 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 Section 16352, loss of profits from a business.
(c) This section does not apply to a contract to which Section 16361 applies.
(Added by Stats. 1999, Ch. 145, Sec. 5. Effective January 1, 2000.)
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