Official Code of Georgia Annotated

Title 53. WILLS, TRUSTS, AND ADMINISTRATION OF ESTATES · Chapter 12. TRUSTS · Article 17. GEORGIA PRINCIPAL AND INCOME ACT · Part 5. ALLOCATION OF DISBURSEMENTS DURING ADMINISTRATION OF TRUST

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

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Current through: Including Acts of the 2025 Regular Session of the General Assembly.

(a)
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.#
(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 shall not transfer any amount for depreciation:#
1. (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. (2)
  During the administration of a decedent’s estate; or#
3. (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.#
(c)
An amount transferred to principal need not be held as a separate fund.#

The notes below are printed with the section but are not enacted law (O.C.G.A. § 1-1-1(c)). They are shown apart from the text.

History

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

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Current through: Including Acts of the 2025 Regular Session of the General Assembly.

Text read from t52-t53-(v40)-2021-pdf.pdf, Volume V40, 2021 edition, page 956; merge action: carried; file SHA-256 062775612dfc.

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