Insurance and Insurance Proceeds. The governing instrument may permit the trust to hold one or more policies of insurance on the residence. In addi- tion, the governing instrument may permit the trust to hold, in a separate account, proceeds of insurance payable to the trust as a result of damage to or destruction of the residence. For pur- poses of this paragraph, amounts (other than insurance proceeds payable to the trust as a result of damage to or destruction of the residence) received as a result of the involuntary conver- sion (within the meaning of section 1033) of the residence are treated as proceeds of insurance.
Appears in 3 contracts
Samples: Internal Revenue Service Regulations, Property Conversion Agreement, Property Transfer Agreement
Insurance and Insurance Proceeds. The governing instrument may permit the trust to hold one or more policies of insurance on the residence. In addi- tion, the governing instrument may permit the trust to hold, in a separate account, proceeds of insurance payable to the trust as a result of damage to or destruction of the residence. For pur- poses of this paragraph, amounts (other than insurance proceeds payable to the trust as a result of damage to or destruction of the residence) received as a result of the involuntary conver- sion (within the meaning of section 1033) of the residence are treated as proceeds of insurance.conver-
Appears in 1 contract
Samples: Property Division Agreement
