2016 Connecticut General Statutes
Title 45a - Probate Courts and Procedure
Chapter 802c - Trusts
Section 45a-542z - 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 section 45a-542k 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.
(P.A. 99-164, S. 27, 36.)
History: P.A. 99-164 effective January 1, 2000.
