On December 9, 2012, about 1615 central standard time, a Merritt Kelly D, N5172S, was substantially damaged following a forced landing near Brandon, Mississippi. The flight instructor sustained minor injuries and one student pilot was not injured. The experimental, amateur-built airplane was operated by a corporation under the provisions of 14 Code of Federal Regulations Part 91 as an instructional flight. Visual meteorological conditions prevailed and no flight plan was filed. The local flight was originating at the time of the accident. The commercial-rated flight instructor reported that, prior to taking off to the west, a magneto and carburetor heat check was performed with normal results. The student pilot, who held a private pilot certificate, was at the controls for the takeoff. Shortly after liftoff, the engine suddenly lost all power. The flight instructor took over the controls and maneuvered the airplane for a forced landing. The airplane collided with trees in a marshy area. A Federal Aviation Administration inspector responded to the accident site and examined the wreckage. The inspector confirmed substantial damage to the airframe. Flight control continuity was confirmed from the controls to the cockpit. The fuel tank was breached, and contained a residual amount of light blue-colored fuel. Some small flakes were observed inside the tank, consistent in appearance with tank sealant. The fuel selector valve was in the open position and no restrictions were observed. The gascolator was opened and was full of fuel. A small amount of debris was found in the bottom of the gascolator bowl. The carburetor inlet screen was free of contaminants. Further examination of the engine revealed that internal continuity was confirmed and compression was observed on all cylinders. The engine was full of oil. Left magneto drive continuity was confirmed. The top spark plugs were removed and the electrodes were clean with a light gray color. Fuel was observed on the ground around the aircraft. The temperature and dew point at the time of the accident were about 73 and 64 degrees F, respectively. According to the carburetor icing chart published in FAA Special Airworthiness Information Bulletin CE-09-35, dated June 30, 2009, the weather conditions at the time were conducive to serious icing at glide power.