1. (a) This section applies to:

   1. (1) property in a trust that is subject to a spouse's right of election under IC 29-1-3 ; and

   2. (2) a trust that receives property from the settlor's estate;

      if the settlor's spouse files an effective election to take a share of the settlor's estate against the settlor's will under IC 29-1-3 .

2. (b) The trustee shall dispose of the assets received from the settlor's estate and the portion of the trust remaining after the spouse's election as if the settlor's spouse had died before the settlor died.

As added by P.L.200-1991, SEC.4.