Question: A client, Sam Curren, established the Curren Trust earlier this year. In addition to stocks and cash, the trust's assets include a life insurance policy

A client, Sam Curren, established the Curren Trust earlier this year. In addition to stocks and cash, the trust's assets include a life insurance policy on the life of Mr. Curren. The trust is both the owner and beneficiary of the policy. The insurance premiums are $8,250 per year. Are the premium payments classified as payments from the principal account or from the income account if the state that is the situs of the trust has adopted the latest version of the Uniform Principal and Income Act? Go to the Web site for the National Conference of Commissioners on Uniform State Laws, www .uniformlaws.org, and find the Uniform Principal and Income Act. Consult Section 502 of the Act and prepare a memo that addresses the classification of the payment of the insurance premium.

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