[Code of Federal Regulations]
[Title 25, Volume 1]
[Revised as of April 1, 2005]
From the U.S. Government Printing Office via GPO Access
[CITE: 25CFR179]

[Page 634]
 
                            TITLE 25--INDIANS
 
     CHAPTER I--BUREAU OF INDIAN AFFAIRS, DEPARTMENT OF THE INTERIOR
 
PART 179_LIFE ESTATES AND FUTURE INTERESTS--Table of Contents
 
Sec.  179.4  Distribution of principal and income.

    In all cases where the document creating the life estate does not 
specify a distribution of proceeds; or where the vested remainderman and 
life tenant have not entered into a written agreement approved by the 
Secretary providing for the distribution of proceeds; or where, by such 
document or agreement or by the application of State law, the open mine 
doctrine does not apply; the Secretary shall:
    (a) Distribute all rents and profits, as income, to the life tenant.
    (b) Distribute any contract bonus one-half each to the life tenant 
and the remainderman.
    (c) In the case of mineral contracts, invest the principal, with 
interest income to be paid the life tenant during the life estate, 
except in those instances where the administrative cost of investment is 
disproportionately high, in which case Sec.  179.4(d) shall apply. The 
principal will be distributed to the remainderman upon termination of 
the life estate.
    (d) In all other instances, distribute the principal immediately 
according to the formulas set forth in Sec.  179.5, investing all 
proceeds attributable to any contingent remainderman in an account, with 
disbursement to take place upon determination of the contingent 
remainderman.