MS SB2669

Enacts the Mississippi Principal and Income Act of 2013, codified in Title 91, Chapter 17, establishing rules for fiduciaries to allocate receipts and disbursements between principal and income in estates and trusts.

Authorizes trustees to adjust between principal and income to the extent necessary when unable to comply with impartial administration requirements, subject to specific restrictions and limitations designed to protect tax benefits and prevent conflicts of interest.

Provides a safe-harbor adjustment allowing trustees to increase net trust accounting income by up to 6% of the trust's value without the adjustment being subject to challenge.

Establishes detailed allocation rules for various types of receipts (dividends, royalties, insurance proceeds, annuities) and disbursements (taxes, fees, repairs, environmental costs) between principal and income accounts.

Repeals the Revised Uniform Principal and Income Law (Sections 91-17-1 through 91-17-31) and makes the new act effective January 1, 2013, applicable to all existing trusts and estates unless the trust document provides otherwise.