TITLE 53 WILLS, TRUSTS, AND ADMINISTRATION OF ESTATES

Section 12. (Revised Trust Code of 2010) Trusts, 53-12-1 through 53-12-506.

ARTICLE 17 GEORGIA PRINCIPAL AND INCOME ACT

53-12-452. Transfers from income to principal for depreciation.

1. As used in this Code 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.
2. A trustee may transfer to principal a reasonable amount of the net cash receipts from a principal asset that is subject to depreciation but shall 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 Code section if the trustee is accounting under Code Section 53-12-412 for the business or activity in which the asset is used.
3. An amount transferred to principal need not be held as a separate fund.

(Code 1981, §53-12-452, enacted by Ga. L. 2010, p. 579, § 1/SB 131; Ga. L. 2011, p. 551, § 18/SB 134.)

The 2011 amendment, effective May 12, 2011, substituted "Code Section 53-12-412" for "Section 403 of the federal Internal Revenue Code of 1986" in paragraph (b)(3).