SB 2010 Summary

• Enacts the Mississippi Principal and Income Act of 2012 to codify rules for how fiduciaries allocate estate and trust receipts and disbursements between principal and income beneficiaries.

• Authorizes trustees to adjust between principal and income when necessary to comply with impartiality requirements, with a safe-harbor provision allowing adjustments up to 6% of trust value without challenge.

• Establishes specific allocation rules for various trust receipts including distributions from entities, rental income, natural resources, timber, and insurance proceeds, as well as disbursement rules for trustee compensation, taxes, and capital improvements.

• Requires courts to defer to fiduciary discretionary decisions unless abuse is shown, and provides remedies including restitution, withholding future distributions, or fiduciary payment when abuse occurs.

• Repeals the prior Revised Uniform Principal and Income Law (Sections 91-17-1 through 91-17-31) and becomes effective January 1, 2012.