N.Y. Estates, Powers & Trusts Law § 11-a-5.3: Transfers from income to principal for depreciation

§ 11-A-5.3 Transfers from income to principal for depreciation

(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 11-A-4.3 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.