Transfers from income to principal for depreciation.

Del. Code tit. 12, § 61-503
in effect
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(a) 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 1 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: (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 § 61-403 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.
Source: DE Code (Official Site)URL: https://delcode.delaware.gov/title12/c061/sc05/index.htmlFetched: 10/4/2026

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Del. Code tit. 12, § 61-503 — Transfers from income to principal for depreciation | Delaware Code | Corpus