MS SB2451

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

Changes the definition of "total assets" in partial liquidation calculations to mean the amount of cash and aggregate adjusted bases of other property held by the entity, removing reference to "gross assets."

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

Specifies that partial liquidation occurs 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.

Takes effect July 1, 2025.