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·Title 72 ESTATES, TRUSTS, AND FIDUCIARY RELATIONSHIPS·Ch. 34 PRINCIPAL AND INCOME·Part 4 Montana Uniform Principal and Income Act

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.

Montana § 72-34-450 (Assets Subject To Depreciation -- Transfer From Income To Principal Of Portion Of Net Cash Receipts) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.