386.494 Transfers from income to principal for depreciation. (1) 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 (1) year. (2) A trustee may transfer to principal a reasonable amount of the net cash receipts from a principal asset that is subject to depreciation, but shall not transfer any amount for depreciation: (a) Of that portion of real property used or available for use by a beneficiary as a residence or of tangible personal property held o r made available for the personal use or enjoyment of a beneficiary; or (b) During the administration of a decedent's estate. (3) An amount transferred to principal need not be held as a separate fund. Effective: January 1, 2005 History: Created 2004 Ky. A cts ch. 158, sec. 23, effective January 1, 2005.
Kentucky Legal Code