Maryland Statutes
Part V - Allocation of Disbursements During Administration of Trust
Section 15-525 - 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 1 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 § 15-510 of this subtitle 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.

Structure Maryland Statutes