MS HB1366

Amends Section 91-17-401 of the Mississippi Code to revise how trustees allocate money received in partial liquidation of entities to principal and income.

Defines partial liquidation as occurring when distributions by all owners collectively exceed 20% of the entity's total assets, as shown in year-end financial statements immediately preceding the initial receipt.

Requires trustees to reallocate a portion of receipts from partial liquidation from principal to income to reimburse the trustee or beneficiary for federal and state income taxes attributable to the receipt.

Takes effect July 1, 2024.