Delaware § 61-503 Transfers from income to principal for depreciation

Delaware Statutes

§ 61-503 — Transfers from income to principal for depreciation

Delaware·Title 12·Part Allocation of Principal and Income·Ch. 61 DELAWARE UNIFORM PRINCIPAL AND INCOME ACT·Subch. Allocation of Disbursements During Administration of Trust

(a)In this section, “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 1 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 § 61-403 of this title for the business or activity in which the asset is used.

(c)An amount transferr

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(a) In this section, “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 1 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 § 61-403 of this title 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.

Delaware § 61-503 (Transfers from income to principal for depreciation) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.