(503) Transfers from income to principal for depreciation
N.D. Cent. Code § 59-04.2-26
in effect59-04.2-26. (503) Transfers from income to principal for depreciation
1. 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.
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 may not transfer any amount for
depreciation:
a. 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;
b. During the administration of a decedent's estate; or
c. Under this section if the trustee is accounting under section 59-04.2-11 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.
Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://ndlegis.gov/cencode/t59c04-2.pdf#nameddest=59-04p2-26Fetched: 10/16/2026