564-C:5-503 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 RSA 564-C:4-403 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. Source. 2006, 320:68, eff. Aug. 19, 2006.
New Hampshire Legal Code