386.494 Transfers from income to principal for depreciation.

124 words·~1 min read·/ky/chapter-386/386-494

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

(1)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.

(2)A trustee may transfer to principal a reasonable amount of the net cash receipts from

a principal asset that is subject to depreciation, but shall not transfer any amount for

depreciation:

(a)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; or

(b)During the administration of a decedent's estate.

(3)An amount transferred to principal need not be held as a separate fund.