HRS §557A-503
Moving money from income to principal for depreciation
Read the official text at capitol.hawaii.gov ↗This section lets a trustee set aside some income from an asset to cover its loss in value over time, but only in certain cases. It cannot be done for property a beneficiary lives in or uses personally, during estate administration, or if the trustee already accounts for the asset under a different rule. The set-aside money does not need its own separate account.
trustees
The statute, as written — Transfers from income to principal for depreciation
A copy, taken August 20, 2026. The version published by the Legislature is the one that governs, and it may have changed since. Check it before relying on anything here.
(a) As used in this section, "depreciation" means a reduction in value of a fixed asset having a useful life of more than one year, due to wear, tear, decay, corrosion, or gradual obsolescence. (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 a transfer may not be made 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 section 557A-403 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.
Sections this one refers to
§557A-403 Trustee can keep separate books for a business
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