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Transfers from income to principal for depreciation

KRS 386.494
in effect
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386.494. Transfers from income to principal for depreciation (1) 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. (2) A trustee may transfer to principal a reasonable amount of the net cash receipts from a principal asset that is subject to depreciation, but shall not transfer any amount for depreciation: (a) 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; or (b) During the administration of a decedent's estate. (3) An amount transferred to principal need not be held as a separate fund. Effective: January 1, 2005 History: Created 2004 Ky. Acts ch. 158, sec. 23, effective January 1, 2005.
Source: Kentucky Legislative Research Commission (legislature.ky.gov)URL: https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=35939Fetched: 10/20/2026

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