---
title: O.C.G.A. § 53-12-426. Liquidating asset.
collection: code
id: 53-12-426
cite_as: O.C.G.A. § 53-12-426 (2025)
canonical_url: https://georgiacommons.org/code/53-12-426
md_url: https://georgiacommons.org/code/53-12-426.md
text_url: https://georgiacommons.org/code/53-12-426/text
source_url: https://www.legis.ga.gov/api/document/docs/default-source/joint-features-document-library/t52-t53-(v40)-2021-pdf.pdf?sfvrsn=d23ba203_0#page=950
date: 2025
status: active
corpus_version: 2025-supplement-89aa39ab3c68
license: CC0-1.0
publisher: Georgia Commons, an independent project of Georgia Civic Data. Not the State of Georgia. Not legal advice.
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version: the only printed version
in_force: true
current_through: Including Acts of the 2025 Regular Session of the General Assembly
heading_path: WILLS, TRUSTS, AND ADMINISTRATION OF ESTATES / TRUSTS / GEORGIA PRINCIPAL AND INCOME ACT / ALLOCATION OF RECEIPTS DURING ADMINISTRATION OF TRUST / Receipts Not Normally Apportioned
---

# O.C.G.A. § 53-12-426. Liquidating asset.

(a) As used in this Code section, the term ‘‘liquidating asset’’ means an asset whose value will diminish or terminate because such asset is expected to produce receipts for a period of limited duration. Such term includes a leasehold, patent, copyright, royalty right, and right to receive payments during a period of more than one year under an arrangement that does not provide for the payment of interest on the unpaid balance. Such term shall not include a payment subject to Code Section 53-12-425, resources subject to Code Section 53-12-427, timber subject to Code Section 53-12-428, an activity subject to Code Section 53-12-430, an asset subject to Code Section 53-12-431, or any asset for which the trustee establishes a reserve for depreciation under Code Section 53-12-452.

(b) A trustee shall allocate to income 10 percent of the receipts from a liquidating asset and the balance to principal.

## History

Code 1981, § 53-12-426, enacted by Ga. L. 2010, p. 579, § 1/SB 131.