58-9-503. Transfers from income to principal for depreciation. - Kansas Statutes

58-9-503

Chapter 58.--PERSONAL AND REAL PROPERTY Part 5.--ALLOCATION OF DISBURSEMENTS DURING ADMINISTRATION OF TRUST Article 9.--UNIFORM PRINCIPAL AND INCOME ACT (1997)

      58-9-503.   Transfers from income to principal fordepreciation.(a) As used in this section, "depreciation" means areduction in value due to wear,tear, decay, corrosion, or gradual obsolescence of a fixed asset having auseful lifeof more than one year.

      (b)   A trustee may transfer to principal a reasonable amount of the netcashreceipts from a principal asset that is subject to depreciation, but may nottransferany amount for depreciation:

      (1)   Of that portion of real property used or available for use by abeneficiary as a residence or of tangible personal property held or madeavailablefor 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 K.S.A. 58-9-403 forthe business or activity in which the asset is used.

      (c)   An amount transferred to principal need not be held as a separate fund.

      History:   L. 2000, ch. 61, § 27; July 1.