EPTL 11-A-5.3 — Legislation

Legislation Search OpenLegislation Statutes Search Term Search icon Search previous SECTION 11-A-5.2 Disbursements from principal up PART 5 Allocation of Disbursements During Administration of Trust next SECTION 11-A-5.4 Transfers from income to reimburse principal Viewing most recent revision (from 2014-09-22) View historical revision as of: -- Choose a Date -- 2014-09-22 Share Facebook Email SECTION 11-A-5.3 Transfers from income to principal for depreciation Estates, Powers & Trusts (EPT) CHAPTER 17-B, ARTICLE 11-A, PART 5 § 11-A-5.3 Transfers from income to principal for depreciation (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 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 11-A-4.3 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.