Montana § 72-34-450 Assets Subject To Depreciation -- Transfer From Income To Principal Of Portion Of Net Cash Receipts

Montana Statutes

§ 72-34-450 — Assets Subject To Depreciation -- Transfer From Income To Principal Of Portion Of Net Cash Receipts

Montana § 72-34-450

Title 72ESTATES, TRUSTS, AND FIDUCIARY RELATIONSHIPS

Ch. 34PRINCIPAL AND INCOME

Part 4Montana Uniform Principal and Income Act

This text of Montana § 72-34-450 (Assets Subject To Depreciation -- Transfer From Income To Principal Of Portion Of Net Cash Receipts) is published on Counsel Stack Legal Research, covering Montana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Mont. Code Ann. § 72-34-450 (2026).

Text

72-34-450 . Assets subject to depreciation -- transfer from income to principal of portion of net cash receipts.

(1)For purposes of 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.

(2)A trustee may transfer from income to principal a reasonable amount of the net cash receipts from a principal asset that is subject to depreciation, under generally accepted accounting principles, but may not transfer any amount for depreciation under this section in any of the following circumstances:

(a)as to the 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 enjoym

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72-34-450 . Assets subject to depreciation -- transfer from income to principal of portion of net cash receipts. (1) For purposes of 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.
(2) A trustee may transfer from income to principal a reasonable amount of the net cash receipts from a principal asset that is subject to depreciation, under generally accepted accounting principles, but may not transfer any amount for depreciation under this section in any of the following circumstances:
(a) as to the 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;
(b) during the administration of a decedent's estate; or
(c) if the trustee is accounting under 72-34-435 for the business or activity in which the asset is used.
(3) An amount transferred from income to principal need not be held as a separate fund.