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:
(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.
Structure Massachusetts General Laws
Part II - Real and Personal Property and Domestic Relations
Chapter 203d - Principal and Income
Section 3 - Fiduciary Duties; General Principles
Section 4 - Trustee's Power to Adjust
Section 5 - Judicial Control of Discretionary Powers
Section 6 - Determination and Distribution of Net Income
Section 7 - Distribution to Residuary and Remainder Beneficiaries
Section 8 - When Right to Income Begins and Ends
Section 9 - Apportionment When Income Interest Ends
Section 10 - Character of Receipts
Section 11 - Distribution From Trust or Estate
Section 12 - Business and Other Activities Conducted by Trustee
Section 13 - Principal Receipts
Section 15 - Obligation to Pay Money
Section 16 - Insurance Policies and Similar Contracts
Section 17 - Insubstantial Allocations Not Required
Section 18 - Deferred Compensation, Annuities and Similar Payments
Section 19 - Liquidating Asset
Section 20 - Minerals, Water, and Other Natural Resources
Section 22 - Property Not Productive of Income
Section 23 - Derivatives and Options
Section 24 - Asset-Backed Securities
Section 25 - Disbursements From Income
Section 26 - Disbursements From Principal
Section 27 - Transfers From Income to Principal for Depreciation