2005 Idaho Code - 68-10-503 — TRANSFERS FROM INCOME TO PRINCIPAL FOR DEPRECIATION

                                  TITLE  68
                            TRUSTS AND FIDUCIARIES
                                  CHAPTER 10
                       UNIFORM PRINCIPAL AND INCOME ACT
                                   PART 5.
          ALLOCATION OF DISBURSEMENTS DURING ADMINISTRATION OF TRUST
    68-10-503.  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 (1) 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
    68-10-403, Idaho Code, 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.