Section 16358 Of Article 5.2. Allocation Of Receipts During Administration Of Trust: Receipts Not Normally Apportioned From California Probate Code >> Division 9. >> Part 4. >> Chapter 3. >> Article 5.2.
16358
. (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.