State Codes and Statutes
Statutes > Maryland > Estates-and-trusts > Title-15 > Subtitle-5 > 15-525§ 15-525. Transfers from income to principal for depreciation.
(a) "Depreciation" defined.- 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.
(b) Transfers authorized; limitations.- 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 § 15-510 of this subtitle for the business or activity in which the asset is used.
(c) Separate fund not required.- An amount transferred to principal need not be held as a separate fund.
[2000, ch. 292, § 2.]
