(1) In this section, 'depreciation' means a reduction in value due to wear, tear, decay, corrosion, or gradual obsolescence of a tangible asset having a useful life of more than one year.(2) A fiduciary 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: (a) Of the part of real property used or available for use by a beneficiary as a residence;(b) Of tangible personal property held or made available for the personal use or enjoyment of a beneficiary; or(c) Under this section, to the extent the fiduciary accounts:(I) Under section 15-1.2-410 for the asset; or(II) Under section 15-1.2-403 for the business or other activity in which the asset is used.(3) An amount transferred to principal under this section need not be separately held.Added by 2021 Ch. 143, § 1, eff. 1/1/2022.
Colorado Legal Code