Chapter 45 — Chapter 45

A beneficiary of a transfer on death deed is liable for an allowed claim against the transferor's probate estate and statutory allowances to a surviving spouse and children to the extent provided in Section 45-6-102 NMSA 1978. History: 1978 Comp., § 45-6-415, enacted by Laws 2013…

The following form may be used to create a transfer on death deed. The provisions of the Uniform Real Property Transfer on Death Act govern the effect of this or any other instrument used to create a transfer on death deed: (front of form) "REVOCABLE TRANSFER ON DEATH DEED NOTICE…

The following form may be used to create an instrument of revocation under the Uniform Real Property Transfer on Death Act. The provisions of the Uniform Real Property Transfer on Death Act govern the effect of this or any other instrument used to revoke a transfer on death deed.…

A. A foreign corporate trustee is required to qualify as a foreign corporation doing business in New Mexico if it maintains the principal place of administration of any trust within the state. A foreign corporate cotrustee is not required to qualify in New Mexico solely because i…

History: 1953 Comp., § 32A-7-401, enacted by Laws 1975, ch. 257, § 7-401; 1987, ch. 66, § 1.

Sections 45-7-501 through 45-7-522 NMSA 1978 may be cited as the "Uniform Custodial Trust Act". History: 1978 Comp., § 45-7-501, enacted by Laws 1992, ch. 66, § 48.

As used in the Uniform Custodial Trust Act [45-7-501 to 45-7-522 NMSA 1978]: A. "adult" means an individual who is at least eighteen years of age; B. "beneficiary" means an individual for whom property has been transferred to or held under a declaration of trust by a custodial tr…

A. A person may create a custodial trust of property by a written transfer of the property to another person, evidenced by registration or by other instrument of transfer, executed in any lawful manner, naming as beneficiary an individual who may be the transferor, in which the t…

A. A person having the right to designate the recipient of property payable or transferable upon a future event may create a custodial trust upon the occurrence of the future event by designating in writing the recipient, followed in substance by: "as custodial trustee for ______…

trustee; jurisdiction. A. Obligations of a custodial trustee, including the obligation to follow directions of the beneficiary, arise under the Uniform Custodial Trust Act [45-7-501 to 45-7-522 NMSA 1978] upon the custodial trustee's acceptance, express or implied, of the custodi…

facility of payment. A. Unless otherwise directed by an instrument designating a custodial trustee pursuant to Section 45-7-504 NMSA 1978, a person, including a fiduciary other than a custodial trustee, who holds property of or owes a debt to an incapacitated individual not havin…

survivorship. A. Beneficial interests in a custodial trust created for multiple beneficiaries are deemed to be separate custodial trusts of equal undivided interests for each beneficiary. Except in a transfer or declaration for use and benefit of spouses, for whom a right of surv…

A. If appropriate, a custodial trustee shall register or record the instrument vesting title to custodial trust property. B. If the beneficiary is not incapacitated, a custodial trustee shall follow the directions of the beneficiary in the management, control, investment or reten…

A. A custodial trustee, acting in a fiduciary capacity, has all the rights and powers over custodial trust property that an unmarried adult owner has over individually owned property, but a custodial trustee may exercise those rights and powers in a fudiciary [fiduciary] capacity…

A. A custodial trustee shall pay to the beneficiary or expend for the beneficiary's use and benefit so much or all of the custodial trust property as the beneficiary while not incapacitated may direct from time to time. B. If the beneficiary is incapacitated, the custodial truste…

A. The custodial trustee shall administer the custodial trust as for an incapacitated beneficiary if: (1) the custodial trust was created under Section 45-7-506 NMSA 1978; (2) the transferor has so directed in the instrument creating the custodial trust; or (3) the custodial trus…

A third person in good faith and without a court order may act on instructions of, or otherwise deal with, a person purporting to make a transfer as, or purporting to act in the capacity of, a custodial trustee. In the absence of knowledge to the contrary, the third person is not…

A. A claim based on a contract entered into by a custodial trustee acting in a fiduciary capacity, an obligation arising from the ownership or control of custodial trust property or a tort committed in the course of administering the custodial trust, may be asserted by a third pe…

custodial trustee; designation of successor custodial trustee. A. Before accepting the custodial trust property, a person designated as custodial trustee may decline to serve by notifying the person who made the designation, the transferor or the transferor's legal representative…

Except as otherwise provided in the instrument creating the custodial trust, in an agreement with the beneficiary or by court order, a custodial trustee: A. is entitled to reimbursement from custodial trust property for reasonable expenses incurred in the performance of fiduciary…

determination of liability of custodial trustee. A. Upon the acceptance of custodial trust property, the custodial trustee shall provide a written statement describing the custodial trust property and shall thereafter provide a written statement of the administration of the custo…

A. Except as provided in Subsection C of this section, unless previously barred by adjudication, consent or limitation, a claim for relief against a custodial trustee for accounting or breach of duty is barred as to a beneficiary, a person to whom custodial trust property is to b…

A. Upon termination of a custodial trust, the custodial trustee shall transfer the unexpended custodial trust property: (1) to the beneficiary, if not incapacitated or deceased; (2) to the conservator or other recipient designated by the court for an incapacitated beneficiary; or…

A. If a transaction, including a declaration with respect to or a transfer of specific property, otherwise satisfies applicable law, the criteria of Section 45-7-503 NMSA 1978 are satisfied by: (1) the execution and either delivery to the custodial trustee or recording of an inst…

A. The Uniform Custodial Trust Act [45-7-501 to 45-7-522 NMSA 1978] applies to a transfer or declaration creating a custodial trust that refers to that act if, at the time of the transfer or declaration, the transferor, beneficiary or custodial trustee is a resident of or has its…

The Uniform Custodial Trust Act [45-7-501 to 45-7-522 NMSA 1978] shall be applied and construed to effectuate its general purpose to make uniform the law with respect to the subject of that act among states enacting it. History: 1978 Comp., § 45-7-521, enacted by Laws 1992, ch. 6…

If any provision of the Uniform Custodial Trust Act [45-7-501 to 45-7-522 NMSA 1978] or its application to any person or circumstance is held invalid, the invalidity does not affect other provisions or applications of that act that can be given effect without the invalid provisio…

Sections 45-7-601 through 45-7-612 NMSA 1978 may be cited as the "Uniform Prudent Investor Act". History: 1978 Comp., § 45-7-601, enacted by Laws 1995, ch. 210, § 82.

A. Except as otherwise provided in Subsection B of this section, a trustee who invests and manages trust assets owes a duty to the beneficiaries of the trust to comply with the prudent investor rule set forth in the Uniform Prudent Investor Act [45-7-601 to 45-7-612 NMSA 1978]. B…

objectives. A. A trustee shall invest and manage trust assets as a prudent investor would, by considering the purposes, terms, distribution requirements and other circumstances of the trust. In satisfying this standard, the trustee shall exercise reasonable care, skill and cautio…

A trustee shall diversify the investments of the trust unless the trustee reasonably determines that, because of special circumstances, the purposes of the trust are better served without diversifying. History: 1978 Comp., § 45-7-604, enacted by Laws 1995, ch. 210, § 85.

Within a reasonable time after accepting a trusteeship or receiving trust assets, a trustee shall review the trust assets and make and implement decisions concerning the retention and disposition of assets, in order to bring the trust portfolio into compliance with the purposes, …

A trustee shall invest and manage the trust assets solely in the interest of the beneficiaries. History: 1978 Comp., § 45-7-606, enacted by Laws 1995, ch. 210, § 87.

If a trust has two or more beneficiaries, the trustee shall act impartially in investing and managing the trust assets, taking into account any differing interests of the beneficiaries. History: 1978 Comp., § 45-7-607, enacted by Laws 1995, ch. 210, § 88.

In investing and managing trust assets, a trustee may only incur costs that are appropriate and reasonable in relation to the assets, the purposes of the trust and the skills of the trustee. History: 1978 Comp., § 45-7-608, enacted by Laws 1995, ch. 210, § 89.

Compliance with the prudent investor rule is determined in light of the facts and circumstances existing at the time of a trustee's decision or action and not by hindsight. History: 1978 Comp., § 45-7-609, enacted by Laws 1995, ch. 210, § 90.

A. A trustee may delegate investment and management functions that a prudent trustee of comparable skills could properly delegate under the circumstances. The trustee shall exercise reasonable care, skill and caution in: (1) selecting an agent; (2) establishing the scope and term…

The following terms or comparable language in the provisions of a trust, unless otherwise limited or modified, authorizes any investment or strategy permitted under the Uniform Prudent Investor Act [45-7-601 to 45-7-612 NMSA 1978]: "investments permissible by law for investment o…

The Uniform Prudent Investor Act [45-7-601 to 45-7-612 NMSA 1978] applies to trusts existing on and created after its effective date. As applied to trusts existing on its effective date, the Uniform Prudent Investor Act governs only decisions or actions occurring after that date.…

ANNOTATIONS Recompilations. — Laws 1993, ch. 174, § 65 recompiled former 45-8-9 NMSA 1978, as enacted by Laws 1973, ch. 276, § 8, relating to the validity and effect of wills executed by a wife prior to July 1, 1973, as 45-2-806 NMSA 1978, effective July 1, 1993. Laws 2011, ch. 1…

History: Laws 2005, ch. 143, § 5; recompiled by Laws 2011, ch. 124, § 99.

History: Laws 2005, ch. 143, § 14; recompiled by Laws 2011, ch. 124, § 99.

History: Laws 2005, ch. 143, § 15; recompiled by Laws 2011, ch. 124, § 99.

History: Laws 2005, ch. 143, § 16; repealed by Laws 2011, ch. 124, § 97.

History: Laws 2005, ch. 143, § 17; repealed by Laws 2005, ch. 124, § 97.

History: Laws 2005, ch. 143, § 6; recompiled by Laws 2011, ch. 124, § 99.

History: Laws 2005, ch. 143, § 7; recompiled by Laws 2011, ch. 124, § 99.

History: Laws 2005, ch. 143, § 8; recompiled by Laws 2011, ch. 124, § 99.

History: Laws 2005, ch. 143, § 9; recompiled by Laws 2011, ch. 124, § 99.

History: Laws 2005, ch. 143, § 10; recompiled by Laws 2011, ch. 124, § 99.