New Hampshire Revised Statutes 564-C:5-503 – Transfers from Income to Principal for Depreciation
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(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 N.H. Rev. Stat. § 564-C:4-403 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.
(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:
Terms Used In New Hampshire Revised Statutes 564-C:5-503
- 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
- 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 N.H. Rev. Stat. § 564-C:4-403 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.