- 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 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 12 of this act 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.
Laws 1998, SB 1291, c. 115, § 27, eff. November 1, 1998.