§ 28-4805.03 — Transfers from income to principal for depreciation.

District of Columbia § 28-4805.03

• Jurisdiction: District of Columbia
• Title 28: Commercial Instruments and Transactions. [Enacted title]
• Ch. 48: Principal and Income; Uniform Law.
• Subch. V: Allocation Of Disbursements During Administration Of Trust.

Text

(a) For the purposes of this section, the term “depreciation” means a reduction in value due to wear, tear, decay, corrosion, or gradual obsolescence of a fixed asset having a useful life of more than one year.

(b) A trustee may transfer to principal a reasonable amount of the net cash receipts from a principal asset that is subject to depreciation, but may not transfer any amount for depreciation:

(1) Of that portion of real property used or available for use by a beneficiary as a residence or of tangible personal property held or made available for the personal use or enjoyment of a beneficiary;

(2) During the administration of a decedent’s estate; or

(3) Under this section if the trustee is accounting under § 28-4804.03 for the business or activity in which the asset is used.

(c) An amount transferred to principal need not be held as a separate fund.

Legislative History

Apr. 27, 2001, D.C. Law 13-292, § 502(c), 48 DCR 2087