The Vermont Statutes Online
The Statutes below include the actions of the 2025 session of the General Assembly.
NOTE: The Vermont Statutes Online is an unofficial copy of the Vermont Statutes Annotated that is provided as a convenience.
Subchapter
004
:
ALLOCATION OF RECEIPTS DURING ADMINISTRATION OF TRUST
(Cite as: 14 V.S.A. § 3357)
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§ 3357. Insurance policies and similar contracts
(a) Except as otherwise provided in subsection (b) 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.
(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 3353 of this title, loss of profits from a business.
(c) This section does not apply to a contract to which section 3359 of this title applies. (Added 2011, No. 114 (Adj. Sess.), § 1.)