§ 30-2-14-40 — Principal asset subject to depreciation

(a) As used 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
one (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 section 25
of this chapter 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

As added by P.L.84-2002, SEC.2.