Chapter 46A — Chapter 46A

Chapter 46A NMSA 1978 may be cited as the "Uniform Trust Code". History: Laws 2003, ch. 122, § 1-101; 2007, ch. 128, § 1.

The Uniform Trust Code [46A-1-101 to 46A-11-1104 NMSA 1978] applies to express trusts, charitable or noncharitable, and trusts created pursuant to a statute, judgment or decree that requires the trust to be administered in the manner of an express trust. History: Laws 2003, ch. 1…

As used in the Uniform Trust Code: A. "action", with respect to an act of a trustee, includes a failure to act; B. "ascertainable standard" means a standard relating to an individual's health, education, support or maintenance within the meaning of Subparagraph (A) of Paragraph (…

A. Subject to Subsection B of this section, a person has knowledge of a fact if the person: (1) has actual knowledge; (2) has received a notice or notification of it; or (3) from all the facts and circumstances known to the person at the time in question, has reason to know it. B…

A. Except as otherwise provided in the terms of the trust, the Uniform Trust Code governs the duties and powers of a trustee, relations among trustees and the rights and interests of a beneficiary. B. The terms of a trust prevail over any provision of the Uniform Trust Code excep…

The common law of trusts and principles of equity supplement the Uniform Trust Code [46A-1-101 to 46A-11-1104 NMSA 1978], except to the extent modified by that code or another statute of this state. History: Laws 2003, ch. 122, § 1-106.

The meaning and effect of the terms of a trust are determined by: A. the law of the jurisdiction designated in the terms unless the designation of that jurisdiction's law is contrary to a strong public policy of the jurisdiction having the most significant relationship to the mat…

A. Without precluding other means for establishing a sufficient connection with the designated jurisdiction, terms of a trust designating the principal place of administration are valid and controlling if: (1) a trustee's principal place of business is located in or a trustee is …

A. Notice to a person under the Uniform Trust Code [46A-1-101 to 46A-11-1104 NMSA 1978] or the sending of a document to a person under that code must be accomplished in a manner reasonably suitable under the circumstances and likely to result in receipt of the notice or document.…

A. A charitable organization expressly designated to receive distributions under the terms of a charitable trust has the rights of a qualified beneficiary under the Uniform Trust Code [46A-1-101 NMSA 1978] if the charitable organization, on the date the charitable organization's …

A. For purposes of this section, "interested persons" means persons whose consent would be required in order to achieve a binding settlement were the settlement to be approved by the court. B. Except as otherwise provided in Subsection C of this section, interested persons may en…

The rules of construction that apply in this state to the interpretation of and disposition of property by will also apply as appropriate to the interpretation of the terms of a trust and the disposition of the trust property. History: Laws 2003, ch. 122, § 1-112.

A. In this section, "settlor" means a person that executes a trust instrument. "Settlor" includes a person for which a fiduciary or agent is acting. B. A trustee of a trust has an insurable interest in the life of an individual insured under a life insurance policy that is owned …

A. The court may intervene in the administration of a trust to the extent its jurisdiction is invoked by an interested person or as provided by law. B. A trust is not subject to continuing judicial supervision unless ordered by the court. C. A judicial proceeding involving a trus…

A. By accepting the trusteeship of a trust having its principal place of administration in this state or by moving the principal place of administration to this state, the trustee submits personally to the jurisdiction of the courts of this state regarding any matter involving th…

The district court has exclusive jurisdiction of all proceedings involving a trust. History: Laws 2003, ch. 122, § 2-203; 2007, ch. 128, § 7.

A. Except as otherwise provided in Subsection B of this section, venue for a judicial proceeding involving a trust is in the county of New Mexico in which the trust's principal place of administration is or will be located or, if the trust is created by will and the estate is not…

A. Notice to a person who may represent and bind another person pursuant to the provisions of Chapter 46A, Article 3 NMSA 1978 has the same effect as if notice were given directly to the other person. B. The consent of a person who may represent and bind another person pursuant t…

of appointment. To the extent there is no conflict of interest between the holder of a general testamentary power of appointment and the persons represented with respect to the particular question or dispute, the holder may represent and bind persons whose interests, as permissib…

To the extent there is no conflict of interest between the representative and the person represented or among those being represented with respect to a particular question or dispute: A. a conservator may represent and bind the estate that the conservator controls; B. a guardian …

interest. Unless otherwise represented, a minor, incapacitated or unborn person, or a person whose identity or location is unknown and not reasonably ascertainable, may be represented by and bound by another having a substantially identical interest with respect to the particular…

A. If the court determines that an interest is not represented under this article, or that the otherwise available representation might be inadequate, the court may appoint a representative to receive notice, give consent and otherwise represent, bind and act on behalf of a minor…

A trust may be created by: A. transfer of property to another person as trustee during the settlor's lifetime or by will or other disposition taking effect upon the settlor's death; B. declaration by the owner of property that the owner holds identifiable property as trustee; or …

A. A trust is created only if: (1) the settlor has capacity to create a trust; (2) the settlor indicates an intention to create the trust; (3) the trust has a definite beneficiary or is: (a) a charitable trust; (b) a trust for the care of an animal, as provided in Section 4-408 […

A trust not created by will is validly created if its creation complies with the law of the jurisdiction in which the trust instrument was executed or the law of the jurisdiction in which, at the time of creation: A. the settlor was domiciled, had a place of abode or was a nation…

A trust may be created only to the extent its purposes are lawful, not contrary to public policy and possible to achieve. A trust and its terms must be for the benefit of its beneficiaries. History: Laws 2003, ch. 122, § 4-404.

A. A charitable trust may be created for the relief of poverty, the advancement of education or religion, the promotion of health, governmental or municipal purposes or other purposes the achievement of which is beneficial to the community. B. If the terms of a charitable trust d…

influence. A trust is void to the extent its creation was induced by fraud, duress or undue influence. History: Laws 2003, ch. 122, § 4-406.

Except as required by a statute other than the Uniform Trust Code [46A-1-101 NMSA 1978], a trust need not be evidenced by a trust instrument, but the creation of an oral trust and its terms may be established only by clear and convincing evidence. History: Laws 2003, ch. 122, § 4…

A. A trust may be created to provide for the care of an animal alive during the settlor's lifetime. The trust terminates upon the death of the animal or, if the trust was created to provide for the care of more than one animal alive during the settlor's lifetime, upon the death o…

Except as otherwise provided in Section 4-408 [46A-4-408 NMSA 1978] of the Uniform Trust Code or by another statute, the following rules apply: A. a trust may be created for a noncharitable purpose without a definite or definitely ascertainable beneficiary or for a noncharitable …

approval or disapproval. A. In addition to the methods of termination prescribed by Sections 4-411 through 4- 414 [46A-4-411 to 46A-4-414 NMSA 1978] of the Uniform Trust Code, a trust terminates to the extent the trust is revoked or expires pursuant to its terms, no purpose of th…

trust by consent. A. A noncharitable irrevocable trust may be modified or terminated upon consent of the settlor and all beneficiaries, even if the modification or termination is inconsistent with a material purpose of the trust. If upon petition the court finds that the settlor …

circumstances or inability to administer trust effectively. A. The court may modify the administrative or dispositive terms of a trust or terminate the trust if it is established by clear and convincing evidence that there are circumstances not anticipated by the settlor and modi…

A. Except as otherwise provided in Subsection B of this section, if a particular charitable purpose becomes unlawful, impracticable, impossible to achieve or wasteful: (1) the trust does not fail, in whole or in part; (2) the trust property does not revert to the settlor or the s…

A. After notice to the qualified beneficiaries, the trustee of a trust consisting of trust property having a total value less than fifty thousand dollars ($50,000) may terminate the trust if the trustee concludes that the value of the trust property is insufficient to justify the…

The court may reform the terms of a trust, even if unambiguous, to conform the terms to the settlor's intention if it is proved by clear and convincing evidence that both the settlor's intent and the terms of the trust were affected by a mistake of fact or law, whether in express…

To achieve the settlor's tax objectives, the court may modify the terms of a trust in a manner that is not contrary to the settlor's probable intention. The court may provide that the modification has retroactive effect. History: Laws 2003, ch. 122, § 4-416.

After notice to the qualified beneficiaries, a trustee may combine two or more trusts into a single trust or divide a trust into two or more separate trusts, if the result does not impair rights of any beneficiary or adversely affect achievement of the purposes of the trust. Hist…

To the extent a beneficiary's interest is not subject to a spendthrift provision, the court may authorize a creditor or assignee of the beneficiary to reach the beneficiary's interest by attachment of present or future distributions to or for the benefit of the beneficiary or oth…

A. A spendthrift provision is valid only if it restrains both voluntary and involuntary transfer of a beneficiary's interest. B. A term of a trust providing that the interest of a beneficiary is held subject to a "spendthrift trust", or words of similar import, is sufficient to r…

A. As used in this section, "child" includes any person for whom an order or judgment for child support has been entered in this or another state. B. A spendthrift provision is unenforceable against: (1) a beneficiary's child, spouse or former spouse who has a judgment or court o…

A. As used in this section, "child" includes any person for whom an order or judgment for child support has been entered in this or another state. B. Except as otherwise provided in Subsection C of this section, whether or not a trust contains a spendthrift provision, a creditor …

A. Whether or not the terms of a trust contain a spendthrift provision, the following rules apply: (1) during the lifetime of the settlor, the property of a revocable trust is subject to claims of the settlor's creditors; (2) with respect to an irrevocable trust, a creditor or as…

A. Whether or not a trust contains a spendthrift provision, a creditor or assignee of a beneficiary may reach a mandatory distribution of income or principal, including a distribution upon termination of the trust, if the trustee has not made the distribution to the beneficiary w…

Trust property is not subject to personal obligations of the trustee, even if the trustee becomes insolvent or bankrupt. History: Laws 2003, ch. 122, § 5-507.

The capacity required to create, amend, revoke or add property to a revocable trust, or to direct the actions of the trustee of a revocable trust, is the same as that required to make a will. History: Laws 2003, ch. 122, § 6-601.

A. Unless the terms of a trust expressly provide that the trust is irrevocable, the settlor may revoke or amend the trust. This subsection does not apply to a trust created under an instrument executed before July 1, 2003. B. If a revocable trust is created or funded by more than…

A. While a trust is revocable, the trustee may follow a direction of the settlor that is contrary to the terms of the trust. B. While a trust is revocable and the settlor has capacity to revoke the trust, rights of the beneficiaries are subject to the control of, and the duties o…

trust; distribution of trust property. A. A person may commence a judicial proceeding to contest the validity of a trust that was revocable at the settlor's death within the earlier of: (1) three years after the settlor's death; or (2) one hundred twenty days after the trustee se…