Section 386.494 - Transfers from income to principal for depreciation(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.Effective:1/1/2005
Created 2004, Ky. Acts ch. 158, sec. 23, effective1/1/2005.