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§ 15-525. Transfers from income to principal for depreciation

West's Annotated Code of MarylandEstates and Trusts

West's Annotated Code of Maryland
Estates and Trusts (Refs & Annos)
Title 15. Fiduciaries (Refs & Annos)
Subtitle 5. Maryland Uniform Principal and Income Act (Refs & Annos)
Part V. Allocation of Disbursements During Administration of Trust (Refs & Annos)
MD Code, Estates and Trusts, § 15-525
§ 15-525. Transfers from income to principal for depreciation
Currentness
Depreciation defined
(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 1 year.
Transfers from income to principal for depreciation
(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 § 15-510 of this subtitle for the business or activity in which the asset is used.
Amount as separate fund
(c) An amount transferred to principal need not be held as a separate fund.

Credits

Added by Acts 2000, c. 292, § 2, eff. Oct. 1, 2000.
MD Code, Estates and Trusts, § 15-525, MD EST & TRST § 15-525
Current through legislation effective through April 9, 2023, from the 2024 Regular Session of the General Assembly. Some statute sections may be more current, see credits for details.
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