(a) Transfers.--A trustee may transfer to principal a reasonable amount of the net cash receipts from a principal asset that is subject to depreciation. However, a trustee 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 8143 (relating to business and other activities conducted by trustee) for the business or activity in which the asset is used.
(b) Separate fund unnecessary for amount transferred.--An amount transferred to principal need not be held as a separate fund.
(c) Definition.--As used in this section, the term "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.
Structure Pennsylvania Consolidated & Unconsolidated Statutes
Pennsylvania Consolidated & Unconsolidated Statutes
Title 20 - DECEDENTS, ESTATES AND FIDUCIARIES
Chapter 81 - Principal and Income
Section 8101 - Short title of chapter
Section 8103 - Fiduciary duties; general principles
Section 8104 - Trustee's power to adjust
Section 8105 - Power to convert to unitrust
Section 8106 - Judicial control of discretionary powers
Section 8113 - Charitable trusts
Section 8121 - Determination and distribution of net income
Section 8122 - Distribution to residuary and remainder beneficiaries
Section 8131 - When right to income begins and ends
Section 8133 - Apportionment when income interest ends
Section 8141 - Character of receipts
Section 8142 - Distribution from trust or estate
Section 8143 - Business and other activities conducted by trustee
Section 8144 - Principal receipts
Section 8145 - Rental property
Section 8146 - Obligation to pay money
Section 8147 - Insurance policies and similar contracts
Section 8148 - Insubstantial allocations not required
Section 8150 - Liquidating asset
Section 8151 - Minerals, water and other natural resources
Section 8153 - Property not productive of income
Section 8154 - Derivatives and options
Section 8155 - Asset-backed securities
Section 8161 - Mandatory disbursements from income
Section 8162 - Mandatory disbursements from principal
Section 8163 - Discretionary allocation of disbursements
Section 8164 - Transfers from income to principal for depreciation
Section 8165 - Transfers from income to reimburse principal
Section 8167 - Adjustments between principal and income because of taxes