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New Jersey Statutes, Title: 3B, ADMINISTRATION OF ESTATES--DECEDENTS AND OTHERS

    Chapter 19b:

      Section: 3B:19b-26: Transfers from income to principal for depreciation

           26. 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:

(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 of this act 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.

L.2001,c.212,s.26.



This section added to the Rutgers Database: 2013-06-10 16:36:30.






Older versions of 3b:19b-26 (if available):



Court decisions that cite this statute: CLICK HERE.