MS SB2425

Enacts the Mississippi Principal and Income Act of 2010, codified as Title 91, Chapter 17, establishing rules for fiduciaries to allocate receipts and disbursements between principal and income in trusts and estates.

Authorizes trustees to adjust between principal and income when necessary to comply with fiduciary duties of impartial administration, with specific limitations including prohibitions on adjustments affecting marital deduction trusts, annuities, and when the trustee is a beneficiary.

Establishes a safe-harbor adjustment allowing trustees to increase net accounting income up to 6% of trust value with conclusive presumption of propriety, calculated using average fair market value over the prior two to three years depending on trust age.

Specifies allocation rules for various asset types and receipt sources including entities, rental property, insurance proceeds, minerals, timber, derivatives, and asset-backed securities during trust administration.

Repeals the Revised Uniform Principal and Income Law and applies to all existing trusts and estates as of January 1, 2011, with effective date of January 1, 2010.