{"data":{"id":"us-mt/72-34-440","jurisdiction":"us-mt","citation":"72-34-440","heading":"Insubstantial allocation -- allocation of entire amount to principal -- exceptions.","body":"(1) If a trustee determines that an allocation between principal and income required by 72-34-441, 72-34-442, 72-34-443, 72-34-444, or 72-34-447 is insubstantial, the trustee may allocate the entire amount to principal unless one of the circumstances described in 72-34-424(2) applies to the allocation. This power may be exercised by a cotrustee in the circumstances described in 72-34-424(3) and may be released for the reasons and in the manner provided in 72-34-424(4) and (5).\n(2) An allocation is presumed to be insubstantial in either of the following cases:\n(a) when the amount of the allocation would increase or decrease net income in an accounting period, as determined before the allocation, by less than 10%; or\n(b) when the value of the asset producing the receipt for which the allocation would be made is less than 10% of the total value of the trust's assets at the beginning of the accounting period.\n(3) Nothing in this section imposes a duty on the trustee to make an allocation under this section, and the trustee is not liable for failure to make an allocation under this section.","path":["TITLE 72. ESTATES, TRUSTS, AND FIDUCIARY RELATIONSHIPS","CHAPTER 34. PRINCIPAL AND INCOME","Part 4. Montana Uniform Principal and Income Act"],"source_url":"https://mca.legmt.gov/bills/mca/title_0720/chapter_0340/part_0040/section_0400/0720-0340-0040-0400.html","current_through":"Montana Code Annotated 2025","vintage":"","retrieved_at":"2026-09-14T04:59:29Z","sha256":"bd19871280cb241a286e9c2301663e74b15c63b3ef8a889ba7b0990b5b1e3711","source_id":"us-mt","stale":false,"prev":"us-mt/72-34-439","next":"us-mt/72-34-441"},"notice":"GroundRules: Original legal text. Not legal advice."}