22-3-503. Transfer 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 tangible asset having a useful life of more than one year.
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Terms Used In Utah Code 22-3-503
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
Fiduciary: A trustee, executor, or administrator.
(2)
A fiduciary 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:
(a)
of the part of real property used or available for use by a beneficiary as a residence;
(b)
of tangible personal property held or made available for the personal use or enjoyment of a beneficiary; or
(c)
under this section, to the extent the fiduciary accounts:
