New Jersey Statutes 3B:19B-26. Transfers from income to principal for depreciation
Terms Used In New Jersey Statutes 3B:19B-26
- Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. Source: OCC
- Decedent: A deceased person.
- Estate: means all of the property of a decedent, minor or incapacitated individual, trust or other person whose affairs are subject to this title as the property is originally constituted and as it exists from time to time during administration. See New Jersey Statutes 3B:1-1
- Trustee: A person or institution holding and administering property in trust.
a. As used 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 12 of this act 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.
L.2001,c.212,s.26.