GroundRules
12 Del. C. § 61-503: Transfers from income to principal for depreciation.
Where this section sits in the code
- Title 12. Decedents’ Estates and Fiduciary Relations
- Allocation of Principal and Income
- CHAPTER 61. Delaware Uniform Principal and Income Act
- Subchapter V. Allocation of Disbursements During Administration of Trust
(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.
(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 § 61-403 of this title 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.
Collected 2026-09-05T23:02:16Z. Source file · JSON