The Vermont Statutes Online
The Statutes below include the actions of the 2024 session of the General Assembly.
NOTE: The Vermont Statutes Online is an unofficial copy of the Vermont Statutes Annotated that is provided as a convenience.
Title 14 : Decedents Estates and Fiduciary Relations
Chapter 118 : Uniform Principal and Income Act
Subchapter 005 : ALLOCATION OF DISBURSEMENTS DURING ADMINISTRATION OF TRUST
(Cite as: 14 V.S.A. § 3373)-
§ 3373. Transfers from income to principal for depreciation
(a) As used in this section, “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 may not transfer any amount for depreciation in the following instances:
(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 3353 of this title 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. (Added 2011, No. 114 (Adj. Sess.), § 1.)
