Massachusetts General Laws ch. 203D sec. 27 – Transfers from income to principal for depreciation
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Section 27. (a) 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:
Terms Used In Massachusetts General Laws ch. 203D sec. 27
- 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.
- Personal property: All property that is not real property.
- Real property: Land, and all immovable fixtures erected on, growing on, or affixed to the land.
- Trustee: A person or institution holding and administering property in trust.
(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 for the business or activity in which the asset is used.
(b) An amount transferred to principal need not be held as a separate fund.