{"data":{"id":"us-de/12-del.-c.-61-503","jurisdiction":"us-de","citation":"12 Del. C. § 61-503","heading":"Transfers from income to principal for depreciation.","body":"(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.\n(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:\n(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;\n(2) During the administration of a decedent’s estate; or\n(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.\n(c) An amount transferred to principal need not be held as a separate fund.","path":["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"],"source_url":"https://delcode.delaware.gov/title12/c061/sc05/index.html#61-503","current_through":"2026-08-10 (85 Del. Laws, c. 421, 424)","vintage":"","retrieved_at":"2026-09-05T23:02:16Z","sha256":"03fd11230826e962f6365ef567510c9887740731775758acc1484b74ecbabb19","source_id":"us-de","stale":true,"prev":"us-de/12-del.-c.-61-502","next":"us-de/12-del.-c.-61-504"},"notice":"GroundRules: Original legal text. Not legal advice."}