30-3144. Transfers from income to principal for depreciation.
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/ne/chapter-30/30-3144A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
(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 section 30-3129 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.