Statute · New York Estates, Powers & Trusts Law

N.Y. Est. Powers & Trusts Law § 11-A-5.3 — Transfers from income to principal for depreciation

N.Y. Est. Powers & Trusts Law § 11-A-5.3

Type: Statute
Source: New York Estates, Powers & Trusts Law
Jurisdiction: New York
Current through: Nov 5, 2026 (NY Senate Open Legislation)

§ 11-A-5.3 Transfers from income to principal for depreciation

Citator

N.Y. Est. Powers & Trusts Law § 11-A-5.3 — Transfers from income to principal for depreciation is in force in the current edition of the Code, and nothing recorded condemns it.

§ 11-A-5.3 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 11-A-4.3 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.