§ 53-12-452. Transfers From Income to Principal for Depreciation
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. A trustee may transfer to principal a reasonable amount of the net cash receipts from a principal asset that […]
§ 53-12-453. Transfers From Income to Reimburse Principal
Wherever a charge that is properly allocable to income has been made or is expected to be made from principal because of the unusually large nature of the charge or otherwise, the trustee may transfer an appropriate amount from income to principal in one or more accounting periods to reimburse principal or to provide a […]
§ 53-12-454. Income Taxes
A tax required to be paid by a trustee based on receipts allocated to income shall be paid from income. A tax required to be paid by a trustee based on receipts allocated to principal shall be paid from principal, even if the tax is called an income tax by the taxing authority. A tax […]
§ 53-12-455. Adjustments Between Principal and Income Because of Taxes
A fiduciary may make adjustments between principal and income to offset the shifting of economic interests or tax benefits between income beneficiaries and remainder beneficiaries which arise from: Elections and decisions, other than those described in subsection (b) of this Code section, that the fiduciary makes from time to time regarding tax matters; An income […]
§ 53-12-422. Obligation to Pay Money
An amount received as interest, whether determined at a fixed, variable, or floating rate, on an obligation to pay money to the trustee, including an amount received as consideration for prepaying principal, shall be allocated to income without any provision for amortization of premium. A trustee shall allocate to principal an amount received from the […]
§ 53-12-423. Insurance Policies and Similar Contracts
Except as otherwise provided in subsection (b) of this Code section, a trustee shall allocate to principal the proceeds of a life insurance policy or other contract in which the trust or its trustee is named as beneficiary, including a contract that insures the trust or its trustee against loss for damage to, destruction of, […]
§ 53-12-380. Short Title
This article shall be known and may be cited as the “Georgia Principal and Income Act.” History. Code 1981, § 53-12-380 , enacted by Ga. L. 2010, p. 579, § 1/SB 131.
§ 53-12-381. Definitions
As used in this article, the term: “Accounting period” means a calendar year unless another 12 month period is selected by a fiduciary. Such term includes a portion of a calendar year or other 12 month period that begins when an income interest begins or ends when an income interest ends. “Beneficiary” includes, in the […]
§ 53-12-390. Payment of Interest on Pecuniary Amount
If a beneficiary is to receive a pecuniary amount outright from a trust after an income interest ends, and no interest is provided for by the terms of the trust, the pecuniary amount usually bears interest at the legal rate after the expiration of 12 months from the date the income interest terminates. The general […]
§ 53-12-391. Payment of Expenses
Expenses incurred in connection with the settlement of a decedent’s estate or the winding up of a terminating income interest, including interest and penalties concerning taxes, fees of attorneys and personal representatives and trustees, and court costs, may be charged against the principal or income in the discretion of the personal representative or trustee. History. […]