Vermont Statutes Title 14 Sec. 3373
Terms Used In Vermont Statutes Title 14 Sec. 3373
- 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
- Beneficiary: includes , in the case of a decedent's estate, an heir, legatee, and devisee and, in the case of a trust, an income beneficiary and a remainder beneficiary. See
- Decedent: A deceased person.
- following: when used by way of reference to a section of the law shall mean the next preceding or following section. See
- Income: means money or property that a fiduciary receives as current return from a principal asset. See
- Personal property: All property that is not real property.
- Principal: means property held in trust for distribution to a remainder beneficiary when the trust terminates. See
- 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.
- Trustee: includes an original, additional, or successor trustee, whether or not appointed or confirmed by a court. See
§ 3373. Transfers from income to principal for depreciation
(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 in the following instances:
(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 3353 of this title 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. (Added 2011, No. 114 (Adj. Sess.), § 1.)