1. (1) In this section, depreciation means a reduction in value due to wear, tear, decay, corrosion, or gradual obsolescence of a tangible asset having a useful life of more than one year.

2. (2) A fiduciary 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. (a) Of the part of real property used or available for use by a beneficiary as a residence;
   2. (b) Of tangible personal property held or made available for the personal use or enjoyment of a beneficiary; or

   3. (c) Under this section, to the extent the fiduciary accounts:

      1. (I) Under section 15-1.2-410 for the asset; or
      2. (II) Under section 15-1.2-403 for the business or other activity in which the asset is used.
3. (3) An amount transferred to principal under this section need not be separately held.

Source: L. 2021: Entire article added, (SB 21-171), ch. 143, p. 833, § 1, effective January 1, 2022.