reglab/statecodes huggingface dataset:
2023 New Mexico Statutes › Chapter 46 - Fiduciaries and Trusts › Article 3A - Uniform Principal and Income › Article 5 - ALLOCATION OF DISBURSEMENTS › Section 46-3A-505 - Income taxes.

A. A tax required to be paid by a trustee based on receipts allocated to income must be paid from income.
B. A tax required to be paid by a trustee based on receipts allocated to principal must be paid from principal, even if the tax is called an income tax by the taxing authority.
C. A tax required to be paid by a trustee on the trust's share of an entity's taxable income must be paid:
(1) from income to the extent that receipts from the entity are allocated only to income;
(2) from principal to the extent that receipts from the entity are allocated only to principal;
(3) proportionately from principal and income to the extent that receipts from the entity are allocated to both income and principal; and
(4) from principal to the extent that the tax exceeds the total receipts from the entity.
D. After applying Subsections A through C of this section, the trustee shall adjust income or principal receipts to the extent that the trust's taxes are reduced because the trust receives a deduction for payments made to a beneficiary.
History:
Laws 2001, ch. 113, § 505; 2011, ch. 124, § 88.
ANNOTATIONS
The 2011 amendment,
effective January 1, 2012, in Subsection D, provided for the proportional payment of a tax from principal and income if income is allocated to both principal and interest and from principal if the tax exceeds income; and required the trustee to adjust income and principal if the trust's taxes are reduced because of a deduction for payments to a beneficiary.
2023 New Mexico Statutes › Chapter 46 - Fiduciaries and Trusts › Article 3A - Uniform Principal and Income › Article 5 - ALLOCATION OF DISBURSEMENTS › Section 46-3A-506 - Adjustments between principal and income because of taxes.

(a) A fiduciary may make adjustments between principal and income to offset the shifting of economic interests or tax benefits between income beneficiaries and remainder beneficiaries which arise from:
(1) elections and decisions, other than those described in Subsection (b), that the fiduciary makes from time to time regarding tax matters;
(2) an income tax or any other tax that is imposed upon the fiduciary or a beneficiary as a result of a transaction involving or a distribution from the estate or trust; or
(3) the ownership by an estate or trust of an interest in an entity whose taxable income, whether or not distributed, is includable in the taxable income of the estate, trust or a beneficiary.
(b) If the amount of an estate tax marital deduction or charitable contribution deduction is reduced because a fiduciary deducts an amount paid from principal for income tax purposes instead of deducting it for estate tax purposes, and as a result estate taxes paid from principal are increased and income taxes paid by an estate, trust or beneficiary are decreased, each estate, trust or beneficiary that benefits from the decrease in income tax shall reimburse the principal from which the increase in estate tax is paid. The total reimbursement must equal the increase in the estate tax to the extent that the principal used to pay the increase would have qualified for a marital deduction or charitable contribution deduction but for the payment. The proportionate share of the reimbursement for each estate, trust or beneficiary whose income taxes are reduced must be the same as its proportionate share of the total decrease in income tax. An estate or trust shall reimburse principal from income.
History:
Laws 2001, ch. 113, § 506.
ANNOTATIONS
Effective dates.
— Laws 2001, ch. 113, § 605 made the Uniform Principal and Income Act effective July 1, 2001.
2023 New Mexico Statutes › Chapter 46 - Fiduciaries and Trusts › Article 3A - Uniform Principal and Income › Article 6 - MISCELLANEOUS PROVISIONS › Section 46-3A-601 - Uniformity of application and construction.

In applying and construing the Uniform Principal and Income Act, consideration must be given to the need to promote uniformity of the law with respect to its subject matter among states that enact it.
History:
Laws 2001, ch. 113, § 601.
ANNOTATIONS
Effective dates.
— Laws 2001, ch. 113, § 605 made the Uniform Principal and Income Act effective July 1, 2001.
2023 New Mexico Statutes › Chapter 46 - Fiduciaries and Trusts › Article 3A - Uniform Principal and Income › Article 6 - MISCELLANEOUS PROVISIONS › Section 46-3A-602 - Severability clause.

If any provision of the Uniform Principal and Income Act or its application to any person or circumstance is held invalid, the invalidity does not affect other provisions or applications of the act which can be given effect without the invalid provision or application, and to this end the provisions of the act are severable.
History:
Laws 2001, ch. 113, § 602.
ANNOTATIONS
Effective dates.
— Laws 2001, ch. 113, § 605 made the Uniform Principal and Income Act effective July 1, 2001.
2023 New Mexico Statutes › Chapter 46 - Fiduciaries and Trusts › Article 3A - Uniform Principal and Income › Article 6 - MISCELLANEOUS PROVISIONS › Section 46-3A-603 - Application of the Uniform Principal and Income Act to existing trusts and estates.

The Uniform Principal and Income Act applies to every trust or decedent's estate existing on the effective date of that act, except as otherwise expressly provided in the will or terms of the trust or in that act.
History:
Laws 2001, ch. 113, § 603.
ANNOTATIONS
Effective dates.
— Laws 2001, ch. 113, § 605 made the Uniform Principal and Income Act effective July 1, 2001.
2023 New Mexico Statutes › Chapter 46 - Fiduciaries and Trusts › Article 4 - State Beneficiary Trusts › Section 46-4-1 - Trusts for state or political subdivision authorized.

Express trusts of real or personal property may be created by will or by declaration of trust by any person naming this state or any of its political subdivisions, municipalities or agencies as the beneficiary thereof.
History:
1953 Comp., § 33-6-1, enacted by Laws 1957, ch. 171, § 1.
2023 New Mexico Statutes › Chapter 46 - Fiduciaries and Trusts › Article 4 - State Beneficiary Trusts › Section 46-4-2 - Acceptance by beneficiary.

The governor in behalf of the state, or any agency thereof or the governing body of any political subdivision named as beneficiary of a trust must approve and accept by appropriate act, resolution, order or ordinance the benefits to be bestowed by such trust. Before any such trust shall affect or be binding upon the governor in behalf of the state, or any agency thereof or the governing body of any political subdivision, the trust agreement shall be approved by a majority of the members of the state board of finance.
History:
1953 Comp., § 33-6-2, enacted by Laws 1957, ch. 171, § 2.
2023 New Mexico Statutes › Chapter 46 - Fiduciaries and Trusts › Article 4 - State Beneficiary Trusts › Section 46-4-3 - Instruments to be recorded.

The instruments creating such express trusts shall be executed in such a manner as to be admitted to probate, if a will, and to recordation in the office of the county clerk in which the trust property is located if a declaration of trust, but they shall be of no effect or force until approved and accepted and endorsed to that effect by the beneficiary and either admitted to probate or filed of record by the clerk of the county where the trust property is located.
History:
1953 Comp., § 33-6-3, enacted by Laws 1957, ch. 171, § 3.
ANNOTATIONS
Cross references.
— For the requirements for recording instruments,
see
14-8-4 NMSA 1978.
For the execution of a will, see 45-2-502 NMSA 1978.
2023 New Mexico Statutes › Chapter 46 - Fiduciaries and Trusts › Article 4 - State Beneficiary Trusts › Section 46-4-4 - Trustees; appointment, succession, powers, duties, term and compensation; status of trustees; liability for acts.

The instrument or will creating such trusts may provide for the appointment, succession, powers, duties, term and compensation of the trustee or trustees; and in all such respects the terms of said instrument or will shall be controlling. If the said instrument or will makes no provision in regard to any of the foregoing, then the general laws of the state shall control as to such omission or omissions.
The trustee, or trustees, under such an instrument or will shall be an agency of the state and the regularly constituted authority of the beneficiary for the performance of the functions for which the trust shall have been created. No trustee or beneficiary shall be charged personally with any liability whatsoever by reason of any act or omission committed or suffered in the performance of such trust or in the operation of the trust property; but any act, liability for any omission or obligation of a trustee or trustees, in the execution of such trust, or in the operation of the trust property, shall extend to the whole of the trust estate, or so much thereof as may be necessary to discharge such liability or obligation, and not otherwise.
History:
1953 Comp., § 33-6-4, enacted by Laws 1957, ch. 171, § 4.
ANNOTATIONS
Cross references.
— For general laws of the state with respect to trusts and trustees,
see
Chapter 46, Articles 1, 2, and 3A NMSA 1978.
2023 New Mexico Statutes › Chapter 46 - Fiduciaries and Trusts › Article 4 - State Beneficiary Trusts › Section 46-4-5 - Trust purposes.

The trusts created for the benefit of the state, its municipalities or political subdivisions or other entities, to be acceptable as set forth in Section 2 [46-4-2 NMSA 1978] of this enactment, must have as the purpose of the trust the furtherance or the providing of funds for the furtherance of some proper and lawful function or duty of the beneficiary.
History:
1953 Comp., § 33-6-5, enacted by Laws 1957, ch. 171, § 5.
2023 New Mexico Statutes › Chapter 46 - Fiduciaries and Trusts › Article 4 - State Beneficiary Trusts › Section 46-4-6 - Funds to carry out trust.

No funds of the beneficiary except those derived from the trust may be applied to carrying out or furtherance of the trust by the trustees, except by express action of the legislative authority of the beneficiary first had.
History:
1953 Comp., § 33-6-6, enacted by Laws 1957, ch. 171, § 6.
2023 New Mexico Statutes › Chapter 46 - Fiduciaries and Trusts › Article 4 - State Beneficiary Trusts › Section 46-4-7 - Lease of property.

The officers or any other governmental agencies or authorities having the custody, management or control of any property, real or personal or both, of the beneficiary of such trust, or of such a proposed trust, which property shall be needful for the execution of the trust purposes, hereby are authorized and empowered to lease such property for said purposes, after the acceptance of the beneficial interest therein by the beneficiary as herein provided, or conditioned upon such acceptance.
History:
1953 Comp., § 33-6-7, enacted by Laws 1957, ch. 171, § 7.
2023 New Mexico Statutes › Chapter 46 - Fiduciaries and Trusts › Article 4 - State Beneficiary Trusts › Section 46-4-8 - Contractual character; duration of trust.

Upon the acceptance of the beneficial interest by the beneficiary as hereinabove authorized and provided, the same shall be and constitute a binding contract between the state of New Mexico, the beneficiary and the grantor or grantors, or the executor of the estate of the testator, for the acceptance of the beneficial interest in the trust property by the designated beneficiary and the application of the proceeds of the trust property and its operation for the purposes, and in accordance with the stipulations specified by the trustor or trustors. Such trusts shall have duration for the term of duration of the beneficiary, or such shorter length of time as shall be specified in the instrument or will creating said trust.
History:
1953 Comp., § 33-6-8, enacted by Laws 1957, ch. 171, § 8.
2023 New Mexico Statutes › Chapter 46 - Fiduciaries and Trusts › Article 4 - State Beneficiary Trusts › Section 46-4-9 - Termination of trust.

Any such trust may be terminated by agreement of the trustees and the authority of the beneficiary having power to accept the trust under the provisions of Section 2 [46-4-2 NMSA 1978] of this enactment; provided that there may be no termination while there exists any outstanding obligation chargeable against the trust property, which by reason of such termination, might become an obligation of the trustees or of the beneficiary.
History:
1953 Comp., § 33-6-9, enacted by Laws 1957, ch. 171, § 9.
2023 New Mexico Statutes › Chapter 46 - Fiduciaries and Trusts › Article 5 - Testamentary Additions to Trusts (Repealed.) › Section 46-5-1 - Repealed.

History:
1953 Comp., § 33-7-1, enacted by Laws 1965, ch. 26, § 1; repealed by Laws 1993, ch. 174, § 84.
ANNOTATIONS
Repeals.
— Laws 1993, ch. 174, § 84 repealed 46-5-1 NMSA 1978, as enacted by Laws 1965, ch. 26, § 1, relating to the short title of the act, effective July 1, 1993. For provisions of former sections,
see
the 1992 NMSA 1978 on
NMOneSource.com
.
2023 New Mexico Statutes › Chapter 46 - Fiduciaries and Trusts › Article 5 - Testamentary Additions to Trusts (Repealed.) › Section 46-5-2 - Repealed.

History:
1953 Comp., § 33-7-2, enacted by Laws 1965, ch. 26, § 2; repealed by Laws 1993, ch. 174, § 84.
ANNOTATIONS
Repeals.
— Laws 1993, ch. 174, § 84 repealed 46-5-2 NMSA 1978, as enacted by Laws 1965, ch. 26, § 2, relating to testamentary additions to trusts, effective July 1, 1993. For provisions of former sections,
see
the 1992 NMSA 1978 on
NMOneSource.com
.
2023 New Mexico Statutes › Chapter 46 - Fiduciaries and Trusts › Article 5 - Testamentary Additions to Trusts (Repealed.) › Section 46-5-3 - Repealed.

History:
1953 Comp., § 33-7-3, enacted by Laws 1965, ch. 26, § 4; repealed by Laws 1993, ch. 174, § 84.
ANNOTATIONS
Repeals.
— Laws 1993, ch. 174, § 84 repealed 46-5-3 NMSA 1978, as enacted by Laws 1965, ch. 26, § 4, relating to the uniformity of interpretation, effective July 1, 1993. For provisions of former sections,
see
the 1992 NMSA 1978 on
NMOneSource.com
.
2023 New Mexico Statutes › Chapter 46 - Fiduciaries and Trusts › Article 6 - Surety Bonds › Section 46-6-2 - Costs of bond; allowance to fiduciaries; costs in court action.

Any fiduciary not subject to the provisions of the Probate Code [Chapter 45 NMSA 1978], required by law or the order of any court or judge of this state, to give a bond or other obligation as such, may include as a part of the lawful expense of executing his trust such reasonable sum paid a company authorized under the laws of this state so to do, for becoming his surety on such bond as may be allowed by the court in which, or a judge before whom, he is required to account, not exceeding one percent per annum on [of] the amount of such bond; and in all actions and proceedings a party entitled to recover costs therein shall be allowed and may tax and recover such sum paid such a company for executing any bond, recognizance, undertaking, stipulation or other obligation therein not exceeding, however, one percent on the amount of such bond, recognizance, undertaking, stipulation or other obligation, during each year the same has been in force.
History:
Laws 1899, ch. 41, § 2; Code 1915, § 507; C.S. 1929, § 17-103; 1941 Comp., § 28-103; 1953 Comp., § 28-1-3; Laws 1975, ch. 257, § 8-117.
ANNOTATIONS
This section makes a special provision for actions and proceedings
and states specifically that it was not limited to the recovery of premiums paid by receivers and others acting in a fiduciary relation. Chrysler Credit Corp. v. Beagles Chrysler-Plymouth, 83 N.M. 272, 491 P.2d 160 (1971).
This section is general enough to include replevin bonds.
Chrysler Credit Corp. v. Beagles Chrysler-Plymouth, 83 N.M. 272, 491 P.2d 160 (1971).
Premium on appeal bond is proper item to be taxed as costs.
Chrysler Credit Corp. v. Beagles Chrysler-Plymouth, 83 N.M. 272, 491 P.2d 160 (1971).
2023 New Mexico Statutes › Chapter 46 - Fiduciaries and Trusts › Article 6 - Surety Bonds › Section 46-6-3 - Release of surety; notice.

When any surety upon the official bond of any fiduciary in this state not subject to the provisions of the Probate Code [Chapter 45 NMSA 1978], shall desire to be released from such obligation, such surety may file his application for such release in the court having jurisdiction of such fiduciary and thereupon the clerk of such court shall issue, under the seal thereof, a notice to such fiduciary, requiring him or her to furnish a new bond, with sureties to be approved by the court, within twenty days from the date of the service of said notice. Such notice may be served in the manner provided by law for the service of a summons in civil actions. If such fiduciary shall fail to furnish such bond within the time hereinbefore prescribed he or she may be summarily removed from office, and a new trustee, committee, guardian, assignee, receiver, executor, administrator or other fiduciary forthwith appointed. From and after the time when such new bond is furnished, or such new fiduciary appointed, the surety making such application shall be released from all liability upon the said bond, except for such default or other misconduct on the part of such fiduciary as occurred prior thereto.
It is further provided, that in case of the release or the withdrawal of any surety as provided in this section, and in case the principal shall account in due form of law for all his acts and doings, and all trust funds or estate, then the unearned portion of any premium paid to such surety shall be refunded and repaid by the said surety or such sureties as aforesaid.
History:
Laws 1899, ch. 41, § 3; Code 1915, § 508; C.S. 1929, § 17-104; 1941 Comp., § 28-104; 1953 Comp., § 28-1-4; Laws 1975, ch. 257, § 8-118.
ANNOTATIONS
Cross references.
— For release or reduction of bond in wills and administration,
see
45-3-604 NMSA 1978.
For the termination of appointment of personal representatives in wills and administration,
see
45-3-608 to 45-3-612, 45-3-618 NMSA 1978.
For termination of guardianship generally,
see
45-5-212 NMSA 1978.
For the dismissal of assignees for the benefit of creditors,
see
56-9-36 to 56-9-41 NMSA 1978.
Am. Jur. 2d, A.L.R. and C.J.S. references. —
74 Am. Jur. 2d Suretyship §§ 82 to 85.
2023 New Mexico Statutes › Chapter 46 - Fiduciaries and Trusts › Article 6 - Surety Bonds › Section 46-6-4 - [Surety companies; failure to pay judgment; forfeiture of right to do business.]

That if any company authorized to do business in this state shall neglect or refuse to pay any final judgment or decree rendered against it upon any such recognizance, stipulation, bond or undertaking made or guaranteed by it under the provisions of Sections 46-6-1, 46-6-2 or 46-6-3 NMSA 1978, from which no appeal, writ of error or supersedeas has been taken, for thirty days after the rendition of such judgment or decree, it shall forfeit all right to do business.
History:
Laws 1899, ch. 41, § 4; Code 1915, § 509; C.S. 1929, § 17-105; 1941 Comp., § 28-105; 1953 Comp., § 28-1-5.
ANNOTATIONS
Bracketed material.
— The bracketed material was inserted by the compiler and is not part of the law.
2023 New Mexico Statutes › Chapter 46 - Fiduciaries and Trusts › Article 6 - Surety Bonds › Section 46-6-5 - [Suits against surety companies; estoppel to deny authority.]

That any company who shall execute or guarantee any recognizance, stipulation, bond or undertaking shall be estopped in any proceeding to enforce the liability which it shall have assumed to incur, to deny its corporate power to execute or guarantee such instrument or assume such liability.
History:
Laws 1899, ch. 41, § 5; Code 1915, § 510; C.S. 1929, § 17-106; 1941 Comp., § 28-106; 1953 Comp., § 28-1-6.
ANNOTATIONS
Bracketed material.
— The bracketed material was inserted by the compiler and is not part of the law.
Judgment against the principal is conclusive, absent fraud or collusion.
State ex rel. Dar Tile Co. v. Glens Falls Ins. Co.
, 1967-NMSC-206, 78 N.M. 435, 432 P.2d 400.
Judgments against principal may not be collaterally attacked by surety
because it is claimed that attorneys' fees are not a proper element of damages in a suit based upon a statutory contractor's bond.
State ex rel. Dar Tile Co. v. Glens Falls Ins. Co.
, 1967-NMSC-206, 78 N.M. 435, 432 P.2d 400.
Am. Jur. 2d, A.L.R. and C.J.S. references. —
74 Am. Jur. 2d Suretyship § 85.
What constitutes action on bond, executed under law of United States, so as to be within Federal District Court's jurisdiction under 28 USCS § 1352, 105 A.L.R. Fed. 716.
2023 New Mexico Statutes › Chapter 46 - Fiduciaries and Trusts › Article 6 - Surety Bonds › Section 46-6-6 - [Release from obligation on bond required by statute in civil action; petition; notice; hearing; order.]

Whenever any surety upon any attachment, replevin or other bond required in civil actions by the statutes of this state shall have reason to believe himself in danger from remaining thereon, and desires to be relieved therefrom, he may present a petition for that purpose to the judge of the district court in which the action wherein the said bond is given, is pending, either in vacation or term time, setting forth such reasons and verify the same by his oath. Whereupon said judge is authorized to hear the same in a summary manner and grant an order relieving the petitioner from such bond if in his judgment the petitioner is entitled to such relief and upon such terms as shall be prescribed in order to secure the right [rights] of all parties interested in the cause; provided, that a copy of such petition shall be served upon the principal and upon the cosurety or sureties on the bond and also upon the defendant in the cause, together with the notice of the time and place where the same will be presented, at least ten days before the hearing; provided, that no surety on any replevin or attachment bond shall be relieved from his liability on such bond until a new bond shall have been given and approved, or until the property, the return or forthcoming of which such original bond was intended to secure, shall have been placed in the custody of the court.
History:
C.L. 1897, § 2685(190), added by Laws 1907, ch. 107, § 1(190); Code 1915, § 4307; C.S. 1929, § 105-1609; 1941 Comp., § 28-107; 1953 Comp., § 28-1-7.
ANNOTATIONS
Bracketed material.
— The bracketed material was inserted by the compiler and is not part of the law.
Law reviews.
— For article, "Attachment in New Mexico - Part I," see 1 Nat. Resources J. 303 (1961).
Am. Jur. 2d, A.L.R. and C.J.S. references. —
74 Am. Jur. 2d Suretyship §§ 82 to 93.
2023 New Mexico Statutes › Chapter 46 - Fiduciaries and Trusts › Article 6 - Surety Bonds › Section 46-6-7 - [Suit on attachment or replevin bond; no assignment necessary.]

Any person interested in any bond by virtue of the attachment and replevin laws, may maintain suit thereon without any assignment by the officer to whom the same is given.
History:
C.L. 1897, § 2685(222)(236), added by Laws 1907, ch. 107, § 1(222)(236); Code 1915, § 4334; C.S. 1929, § 105-1637; 1941 Comp., § 28-108; 1953 Comp., § 28-1-8.
ANNOTATIONS
Bracketed material.
— The bracketed material was inserted by the compiler and is not part of the law.
Cross references.
— For execution against sureties,
see
39-4-10 NMSA 1978.
For replevin generally,
see
Chapter 42, Article 8 NMSA 1978.
For attachment generally,
see
Chapter 42, Article 9 NMSA 1978.
This section does not apply to any bond given the sheriff.
De Witt v. United States Fid. & Guar. Co.
, 1915-NMSC-020, 20 N.M. 163, 148 P. 489.
Law reviews.
— For article, "Attachment in New Mexico - Part II," see 2 Nat. Resources J. 75 (1962).
2023 New Mexico Statutes › Chapter 46 - Fiduciaries and Trusts › Article 6 - Surety Bonds › Section 46-6-8 - [Agreement with surety over deposits of principal.]

It shall be lawful for any party of whom a bond, undertaking or other obligation is required, to agree with his surety or sureties for the deposit of any or all moneys and assets for which he and his surety or sureties are or may be held responsible, with a bank or trust company, authorized by law to do business as such, or with [any] other depository approved by the court or a judge thereof, if such deposit is otherwise proper, for the safekeeping thereof, and in such manner as to prevent the withdrawal of such money or assets or any part thereof, without the written consent of such surety or sureties, or an order of court, or a judge thereof made on such notice to such surety or sureties as such court or judge may direct; provided, however, that such agreement shall not in any manner release from [liability] or change the liability of the principal or sureties as established by the terms of the said bond.
History:
1941 Comp., § 28-109, enacted by Laws 1943, ch. 71, § 1; 1953 Comp., § 28-1-9.
ANNOTATIONS
Bracketed material.
— The bracketed material was inserted by the compiler and is not part of the law.
2023 New Mexico Statutes › Chapter 46 - Fiduciaries and Trusts › Article 6 - Surety Bonds › Section 46-6-9 - [Arrest bond certificates; surety company undertakings authorized.]

A. Any domestic or foreign surety company which has qualified to transact surety business in this state may, in any year, become surety in an amount not to exceed two hundred dollars ($200.00) with respect to any guaranteed arrest bond certificates issued in such year by an automobile club or association by filing with the superintendent of insurance an undertaking thus to become surety.
B. Such undertaking shall be in form to be prescribed by the superintendent and shall state the following:
(1) the name and address of the automobile club or clubs or automobile association or associations with respect to the guaranteed arrest bond certificates of which the surety company undertakes to be surety;
(2) the unqualified obligation of the surety company to pay the fine or forfeiture in an amount not to exceed two hundred dollars ($200.00) of any person who, after posting a guaranteed arrest bond certificate with respect to which the surety company has undertaken to be surety, fails to make the appearance to guarantee which the guaranteed arrest bond certificate was posted.
C. The term, guaranteed arrest bond certificate, means any printed card or other certificate issued by an automobile club or association to any of its members, which card or certificate is signed by such member and contains a printed statement that such automobile club or association and a surety company guarantee the appearance of the person whose signature appears on the card or certificate and that they will, in the event of failure of such person to appear in court at the time of trial, pay any fine or forfeiture imposed on such person in an amount not to exceed two hundred dollars ($200.00).
History:
1953 Comp., § 28-1-10, enacted by Laws 1955, ch. 120, § 1.
ANNOTATIONS
Bracketed material.
— The bracketed material was inserted by the compiler and is not part of the law.
2023 New Mexico Statutes › Chapter 46 - Fiduciaries and Trusts › Article 7 - Transfers to Minors › Section 46-7-1 to 46-7-10 - Repealed.

ANNOTATIONS
Repeals.
— Laws 1989, ch. 357, § 26 repealed 46-7-1 to 46-7-10 NMSA 1978, as amended by Laws 1967, ch. 258, §§ 2, 3, 5, 6, 8 to 10 and Laws 1973, ch. 138, §§ 19 to 21, relating to the Uniform Gifts to Minors Act, effective July 1, 1989. For present comparable provisions,
see
46-7-11 NMSA 1978 et seq.
2023 New Mexico Statutes › Chapter 46 - Fiduciaries and Trusts › Article 7 - Transfers to Minors › Section 46-7-11 - Short title.

Sections 1 through 24 [46-7-11 to 46-7-34 NMSA 1978] of this act may be cited as the "Uniform Transfers to Minors Act".
History:
Laws 1989, ch. 357, § 1.
ANNOTATIONS
Compiler's notes.
— As enacted by Laws 1989, ch. 357, § 1, the phrase "As used in the Uniform Transfers to Minors Act:" inadvertently appeared at the end of this section. For purposes of clarity, the compiler has transferred that phrase, in brackets, to the beginning of 46-7-12 NMSA 1978.
Cross references.
— For Uniform Act for Simplification of Fiduciary Security Transfers,
see
Chapter 46, Article 8 NMSA 1978.
For the lowering of age of majority to 18 not affecting the time for delivery of gift to donee,
see
28-6-1 NMSA 1978.
Am. Jur. 2d, A.L.R. and C.J.S. references. —
59 Am. Jur. 2d, Parent and Child §§ 127, 128.
Unexplained gratuitous transfer of property from one relative to another as raising presumption of gift, 94 A.L.R.3d 608.
Effect of testamentary gift to child conditioned upon specified arrangements for parental control, 11 A.L.R.4th 940.
43 C.J.S., Infants §§ 135 to 138.
2023 New Mexico Statutes › Chapter 46 - Fiduciaries and Trusts › Article 7 - Transfers to Minors › Section 46-7-12 - Definitions.

[As used in the Uniform Transfers to Minors Act [46-7-11 to 46-7-34 NMSA 1978]:]
A. "adult" means an individual who has attained the age of twenty-one years;
B. "benefit plan" means an employer's plan for the benefit of an employee or partner;
C. "broker" means a person lawfully engaged in the business of effecting transactions in securities or commodities for the person's own account or for the account of others;
D. "conservator" means a person appointed or qualified by a court to act as general, limited, or temporary guardian of a minor's property or a person legally authorized to perform substantially the same functions;
E. "court" means the district court;
F. "custodial property" means:
(1) any interest in property transferred to a custodian under the Uniform Transfers to Minors Act; and
(2) the income from and proceeds of that interest in property;
G. "custodian" means a person so designated under Section 10 [46-7-20 NMSA 1978] of the Uniform Transfers to Minors Act or a successor or substitute custodian designated under Section 19 [46-7-29 NMSA 1978] of that act;
H. "financial institution" means a bank, trust company, savings institution or credit union chartered and supervised under state or federal law;
I. "legal representative" means an individual's personal representative or conservator;
J. "member of the minor's family" means the minor's parent, stepparent, spouse, grandparent, brother, sister, uncle or aunt, whether of the whole or half blood or by adoption;
K. "minor" means an individual who has not attained the age of twenty-one years;
L. "person" means an individual, corporation, organization or other legal entity;
M. "personal representative" means an executor, administrator, successor, personal representative or special administrator of a decendent's [decedent's] estate or a person legally authorized to perform substantally [substantially] the same functions;
N. "state" includes any state of the United States, the District of Columbia, the commonwealth of Puerto Rico and any territory or possession subject to the legislative authority of the United States;
O. "transfer" means a transaction that creates custodial property under Section 10 of the Uniform Transfers to Minors Act;
P. "transferor" means a person who makes a transfer under that act; and
Q. "trust company" means a financial institution, corporation, or other legal entity authorized to exercise general trust powers.
History:
Laws 1989, ch. 357, § 2.
ANNOTATIONS
Bracketed material.
— As this act appears in the Session Laws, the phrase "As used in the Uniform Transfers to Minors Act:" inadvertently appeared at the end of 46-7-11 NMSA 1978. For purposes of clarity, the compiler has transferred that phrase, in brackets, to the beginning of this section.
The bracketed material in Subsection M was inserted by the compiler and is not part of the law.
2023 New Mexico Statutes › Chapter 46 - Fiduciaries and Trusts › Article 7 - Transfers to Minors › Section 46-7-13 - Scope and jurisdiction.

A. The Uniform Transfers to Minors Act applies to a transfer that refers to that act in the designation under Subsection A of Section 10 [46-7-20 NMSA 1978] of that act by which the transfer is made if at the time of the transfer, the transferor, the minor or the custodian is a resident of this state or the custodial property is located in this state. The custodianship so created remains subject to that act despite a subsequent change in residence of a transferor, the minor or the custodian or the removal of custodial property from this state.
B. A person designated as custodian under the Uniform Transfers to Minors Act is subject to personal jurisdiction in this state with respect to any matter relating to the custodianship.
C. A transfer that purports to be made and which is valid under the Uniform Transfers to Minors Act, the Uniform Gifts to Minors Act or a substantially similar act of another state is governed by the law of the designated state and may be executed and is enforceable in this state if at the time of the transfer, the transferor, the minor or the custodian is a resident of the designated state or the custodial property is located in the designated state.
History:
Laws 1989, ch. 357, § 3.
ANNOTATIONS
Compiler's notes.
— The Uniform Gifts to Minors Act was repealed in 1989 by the act that enacted this section.
2023 New Mexico Statutes › Chapter 46 - Fiduciaries and Trusts › Article 7 - Transfers to Minors › Section 46-7-14 - Nomination of custodian.

A. A person having the right to designate the recipient of property transferable upon the occurrence of a future event may revocably nominate a custodian to receive the property for a minor beneficiary upon the occurrence of the event by naming the custodian followed in substance by the words: "as custodian for ______________ (name of minor) under the Uniform Transfers to Minors Act." The nomination may name one or more persons as substitute custodians to whom the property shall be transferred, in the order named, if the first nominated custodian dies before the transfer or is unable, declines or is ineligible to serve. The nomination may be made in a will, a trust, a deed, an instrument exercising a power of appointment or in a writing designating a beneficiary of contractual rights which is registered with or delivered to the payer, issuer or other obligor of the contractual rights.
B. A custodian nominated under this section shall be a person to whom a transfer of property of that kind may be made under Subsection A of Section 10 [46-7-20 NMSA 1978] of the Uniform Transfers to Minors Act.
C. The nomination of a custodian under this section does not create custodian property until the nominating instrument becomes irrevocable or a transfer to the nominated custodian is completed under Section 10 of the Uniform Transfers to Minors Act. Unless the nomination of a custodian has been revoked, upon the occurrence of the future event the custodianship becomes effective and the custodian shall enforce a transfer of the custodial property pursuant to Section 10 of that act.
History:
Laws 1989, ch. 357, § 4.
2023 New Mexico Statutes › Chapter 46 - Fiduciaries and Trusts › Article 7 - Transfers to Minors › Section 46-7-15 - Transfer by gift or exercise of power of appointment.

A person may make a transfer by irrevocable gift to, or the irrevocable exercise of a power of appointment in favor of, a custodian for the benefit of a minor pursuant to Section 10 [46-7-20 NMSA 1978] of the Uniform Transfers to Minors Act.
History:
Laws 1989, ch. 357, § 5.
2023 New Mexico Statutes › Chapter 46 - Fiduciaries and Trusts › Article 7 - Transfers to Minors › Section 46-7-16 - Transfer authorized by will or trust.

A. A personal representative or trustee may make an irrevocable transfer pursuant to Section 10 [46-7-20 NMSA 1978] of the Uniform Transfers to Minors Act to a custodian for the benefit of a minor as authorized in the governing will or trust.
B. If the testator or settler has nominated a custodian under Section 4 [46-7-14 NMSA 1978] of the Uniform Transfers to Minors Act to receive the custodial property, the transfer shall be made to that person.
C. If the testator or settler has not nominated a custodian under Section 4 of that act, or all persons so nominated as custodian die before the transfer or are unable, decline or are ineligible to serve, the personal representative or the trustee, as the case may be, shall designate the custodian from among those eligible to serve as custodian for property of that kind under Section 9 [46-7-19 NMSA 1978] of that act.
History:
Laws 1989, ch. 357, § 6.
2023 New Mexico Statutes › Chapter 46 - Fiduciaries and Trusts › Article 7 - Transfers to Minors › Section 46-7-17 - Other transfer by fiduciary.

A. Subject to Subsection C of this section, a personal representative or trustee may make an irrevocable transfer to another adult or trust company as custodian for the benefit of a minor pursuant to Section 10 [46-7-20 NMSA 1978] of the Uniform Transfers to Minors Act in the absence of a will or under a will or trust that does not contain an authorization to do so.
B. Subject to Subsection C of this section, a conservator may make an irrevocable transfer to another adult or trust company as custodian for the benefit of the minor pursuant to Section 10 of that act.
C. A transfer under Subsection A or B of this section may be made only if:
(1) the personal representative, trustee, or conservator considers the transfer to be in the best interest of the minor;
(2) the transfer is not prohibited by or inconsistent with provisions of the applicable will, trust agreement or other governing instrument; and
(3) the transfer is authorized by the court if it exceeds ten thousand dollars ($10,000) in value.
History:
Laws 1989, ch. 357, § 7.
2023 New Mexico Statutes › Chapter 46 - Fiduciaries and Trusts › Article 7 - Transfers to Minors › Section 46-7-18 - Transfer by obligor.

A. Subject to Subsections B and C of this section, a person not subject to Section 6 or 7 [46-7-16 or 46-7-17 NMSA 1978] of the Uniform Transfers to Minors Act who holds property of or owes a liquidated debt to a minor not having a conservator may make an irrevocable transfer to a custodian for the benefit of the minor pursuant to Section 10 [46-7-20 NMSA 1978] of that act.
B. If a person having the right to do so under Section 4 [46-7-14 NMSA 1978] of that act, has nominated a custodian under that section to receive the custodial property, the transfer shall be made to that person;
C. If no custodian has been nominated under Section 4 of that act, or all persons so nominated as custodian die before the transfer or are unable, decline or are ineligible to serve, a transfer under this section may be made to an adult member of the minor's family or to a trust company unless the property exceeds ten thousand dollars ($10,000) in value.
History:
Laws 1989, ch. 357, § 8.
2023 New Mexico Statutes › Chapter 46 - Fiduciaries and Trusts › Article 7 - Transfers to Minors › Section 46-7-19 - Receipt for custodial property.

A written acknowledgment of delivery by a custodian constitutes a sufficient receipt and discharge for custodial property transferred to the custodian pursuant to the Uniform Transfers to Minors Act.
History:
Laws 1989, ch. 357, § 9.
2023 New Mexico Statutes › Chapter 46 - Fiduciaries and Trusts › Article 7 - Transfers to Minors › Section 46-7-21 - Single custodianship.

A transfer may be made only for one minor and only one person may be the custodian. All custodial property held under the Uniform Transfers to Minors Act by the same custodian for the benefit of the same minor constitutes a single custodianship.
History:
Laws 1989, ch. 357, § 11.
2023 New Mexico Statutes › Chapter 46 - Fiduciaries and Trusts › Article 7 - Transfers to Minors › Section 46-7-22 - Validity and effect of transfer.

A. The validity of a transfer made in a manner prescribed in the Uniform Transfers to Minors Act is not affected by:
(1) failure of the transferor to comply with Subsection C of Section 10 [46-7-20 NMSA 1978] of that act concerning possession and control;
(2) designation of an ineligible custodian, except designation of the transferor in the case of property for which the transferor is ineligible to serve as custodian under Subsection A of Section 10 of that act; or
(3) death or incapacity of a person nominated under Section 4 [46-7-14 NMSA 1978] or designated under Section 10 of that act as custodian or the disclaimer of the office by that person.
B. A transfer made pursuant to Section 10 of the Uniform Transfers to Minors Act is irrevocable, and the custodial property is indefeasibly vested in the minor, but the custodian has all the rights, powers, duties and authority provided in the Uniform Transfers to Minors Act and neither the minor nor the minor's legal representative has any right, power, duty or authority with respect to the custodial property except as provided in that act.
C. By making a transfer, the transferor incorporates in the disposition all the provisions of that act and grants to the custodian, and to any third person dealing with a person designated as custodian, the respective powers, rights and immunities provided in that act.
History:
Laws 1989, ch. 357, § 12.
ANNOTATIONS
Am. Jur. 2d, A.L.R. and C.J.S. references. —
38 Am. Jur. 2d Gifts § 15, 16.
Construction and effect of Uniform Gifts to Minors Act, 50 A.L.R.3d 528.
2023 New Mexico Statutes › Chapter 46 - Fiduciaries and Trusts › Article 7 - Transfers to Minors › Section 46-7-23 - Care of custodial property.

A. A custodian shall:
(1) take control of custodial property;
(2) register or record title to custodial property if appropriate; and
(3) collect, hold, manage, invest, and reinvest custodial property.
B. In dealing with custodial property, a custodian shall observe the standard of care that would be observed by a prudent person dealing with property of another and is not limited by any other statute restricting investments by fiduciaries. If a custodian has a special skill or expertise or is named custodian on the basis of representations of a special skill or expertise, the custodian shall use that skill or expertise. However, a custodian, in the custodian's discretion and without liability to the minor or the minor's estate, may retain any custodial property received from a transferor.
C. A custodian may invest in or pay premiums on life insurance or endowment policies on:
(1) the life of the minor only if the minor or the minor's estate is the sole beneficiary; or
(2) the life of another person in whom the minor has an insurable interest only to the extent that the minor, the minor's estate or the custodian in the capacity of custodian is the irrevocable beneficiary.
D. A custodian at all times shall keep custodial property separate and distinct from all other property in a manner sufficient to identify it clearly as custodial property of the minor. Custodial property consisting of an undivided interest is so identified if the minor's interest is held as a tenant in common and is fixed. Custodial property subject to recordation is so identified if it is recorded, and custodial property subject to registration is so identified if it is either registered, or held in an account designated, in the name of the custodian, followed in substance by the words: "as a custodian for
____________________ (name of minor) under the Uniform Transfers to Minors Act".
E. A custodian shall keep records of all transactions with respect to custodial property, including information necessary for the preparation of the minor's tax returns, and shall make them available for inspection at reasonable intervals by a parent or legal representative of the minor or by the minor if the minor has attained the age of fourteen years.
History:
Laws 1989, ch. 357, § 13.
ANNOTATIONS
Treasurer and board of finance subject to "prudent person" test.
— The state treasurer and the state board of finance in selecting proper investments for investment of the permanent funds belonging to the museum of New Mexico are subject to the "prudent person" test in this section. 1964 Op. Att'y Gen. No. 64-29.
2023 New Mexico Statutes › Chapter 46 - Fiduciaries and Trusts › Article 7 - Transfers to Minors › Section 46-7-24 - Powers of custodian.

A. A custodian, acting in a custodial capacity, has all the rights, powers and authority over custodial property that unmarried adult owners have over their own property, but a custodian may exercise those rights, powers and authority in that capacity only.
B. This section does not relieve a custodian from liability for breach of Section 13 [46-7-23 NMSA 1978] of the Uniform Transfers to Minors Act.
History:
Laws 1989, ch. 357, § 14.
2023 New Mexico Statutes › Chapter 46 - Fiduciaries and Trusts › Article 7 - Transfers to Minors › Section 46-7-25 - Use of custodial property.

A. A custodian may deliver or pay to the minor or expend for the minor's benefit so much of the custodial property as the custodian considers advisable for the use and benefit of the minor, without court order and without regard to:
(1) the duty or ability of the custodian personally or of any other person to support the minor; or
(2) any other income or property of the minor which may be applicable or available for that purpose.
B. On petition of an interested person or the minor if the minor has attained the age of fourteen years, the court may order the custodian to deliver or pay to the minor or expend for the minor's benefit so much of the custodial property as the court considers advisable for the use and benefit of the minor.
C. A delivery, payment or expenditure under this section is in addition to, not in substitution for, and does not affect any obligation of a person to support the minor.
History:
Laws 1989, ch. 357, § 15.
2023 New Mexico Statutes › Chapter 46 - Fiduciaries and Trusts › Article 7 - Transfers to Minors › Section 46-7-26 - Custodian's expenses, compensation and bond.

A. A custodian is entitled to reimbursement from custodial property for reasonable expenses incurred in the performance of the custodian's duties.
B. Except for one who is a transferor under Section 5 [46-7-15 NMSA 1978] of the Uniform Transfers to Minors Act a custodian has a noncumulative election during each calendar year to charge reasonable compensation for services performed during that year.
C. Except as provided in Subsection F of Section 19 [46-7-29 NMSA 1978] of the Uniform Transfers to Minors Act, a custodian need not give a bond.
History:
Laws 1989, ch. 357, § 16.
2023 New Mexico Statutes › Chapter 46 - Fiduciaries and Trusts › Article 7 - Transfers to Minors › Section 46-7-27 - Exemption of third person from liability.

A third person in good faith and without court order may act on the instructions of or otherwise deal with any person purporting to make a transfer or purporting to act in the capacity of a custodian and, in the absence of knowledge, is not responsible for determining:
A. the validity of the purported custodian's designation;
B. the propriety of, or the authority under the Uniform Transfers to Minors Act, for any act of the purported custodian;
C. the validity or propriety under that act of any instrument or instructions executed or given either by the person purporting to make a transfer or by the purported custodian; or
D. the propriety of the application of any property of the minor delivered to the purported custodian.
History:
Laws 1989, ch. 357, § 17.
2023 New Mexico Statutes › Chapter 46 - Fiduciaries and Trusts › Article 7 - Transfers to Minors › Section 46-7-28 - Liability to third persons.

A. A claim based on:
(1) a contract entered into by a custodian acting in a custodial capacity;
(2) an obligation arising from the ownership or control of custodial property; or
(3) a tort committed during the custodianship, may be asserted against the custodial property by proceeding against the custodian in the custodial capacity, whether or not the custodian or the minor is personally liable therefore.
B. A custodian is not personally liable:
(1) on a contract properly entered into in the custodial capacity unless the custodian fails to reveal that capacity and to identify the custodianship in the contract; or
(2) for an obligation arising from control of custodial property or for a tort committed during the custodianship unless the custodian is personally at fault.
C. A minor is not personally liable for an obligation arising from ownership of custodial property or for a tort committed during the custodianship unless the minor is personally at fault.
History:
Laws 1989, ch. 357, § 18.