MS HB732

Enacts the Mississippi Principal and Income Act of 2013, replacing the Revised Uniform Principal and Income Law, effective January 1, 2013.

Establishes fiduciary duties for trustees and personal representatives in allocating receipts and disbursements between principal and income, with trust terms taking precedence over statutory rules.

Authorizes trustees to adjust between principal and income when necessary to comply with impartiality duties, including a safe-harbor adjustment up to 6% of trust value, subject to specific restrictions regarding marital deductions, tax consequences, and beneficiary conflicts.

Defines rules for allocating receipts (including dividends, interest, rents, and distributions from entities) and disbursements (including trustee fees, taxes, insurance, and repairs) between principal and income during trust administration.

Provides standards for determining when income interests begin and end, apportioning receipts when decedents die or income interests terminate, and distributing undistributed income to beneficiaries.