reglab/statecodes huggingface dataset:
2023 New Mexico Statutes › Chapter 45 - Uniform Probate Code › Article 6 - Nonprobate Transfers › Part 4 - UNIFORM REAL PROPERTY TRANSFER ON DEATH › Section 45-6-409 - Requirements.

A transfer on death deed shall:
A. contain the essential elements and formalities of a properly recordable inter vivos deed;
B. state that the transfer to the designated beneficiary is to occur at the transferor's death; and
C. be recorded before the transferor's death in the public records in the office of the county clerk for the county where the property is located.
History:
1978 Comp., § 45-6-409, enacted by Laws 2013, ch. 38, § 9.
ANNOTATIONS
Effective dates.
— Laws 2013, ch. 38, § 18 provided that Laws 2013, ch. 38, § 9 was effective January 1, 2014.
2023 New Mexico Statutes › Chapter 45 - Uniform Probate Code › Article 6 - Nonprobate Transfers › Part 4 - UNIFORM REAL PROPERTY TRANSFER ON DEATH › Section 45-6-410 - Notice, delivery, acceptance or consideration not required.

A transfer on death deed does not require:
A. notice or delivery to or acceptance by the designated beneficiary during the transferor's life; or
B. consideration.
History:
1978 Comp., § 45-6-410, enacted by Laws 2013, ch. 38, § 10.
ANNOTATIONS
Effective dates.
— Laws 2013, ch. 38, § 18 provided that Laws 2013, ch. 38, § 10 was effective January 1, 2014.
2023 New Mexico Statutes › Chapter 45 - Uniform Probate Code › Article 6 - Nonprobate Transfers › Part 4 - UNIFORM REAL PROPERTY TRANSFER ON DEATH › Section 45-6-411 - Revocation by instrument authorized; revocation by act not permitted.

A. Subject to Subsection B of this section, an instrument is effective to revoke a recorded transfer on death deed, or any part of it, only if the instrument:
(1) is acknowledged by the transferor after the acknowledgment of the deed being revoked;
(2) is recorded before the transferor's death in the public records in the office of the county clerk for the county in which the deed is recorded; and
(3) is:
(a) a transfer on death deed that revokes the deed or part of the deed expressly or by inconsistency;
(b) an instrument of revocation that expressly revokes the deed or part of the deed; or
(c) an inter vivos deed that expressly revokes the transfer on death deed or part of the deed.
B. If a transfer on death deed is made by more than one transferor:
(1) revocation by a transferor does not affect the deed as to the interest of another transferor; and
(2) a deed of joint owners is revoked only if it is revoked by all of the living joint owners.
C. After a transfer on death deed is recorded, it may not be revoked by a revocatory act on the deed.
D. This section does not limit the effect of an inter vivos transfer of the property.
History:
1978 Comp., § 45-6-411, enacted by Laws 2013, ch. 38, § 11.
ANNOTATIONS
Effective dates.
— Laws 2013, ch. 38, § 18 provided that Laws 2013, ch. 38, § 11 was effective January 1, 2014.
2023 New Mexico Statutes › Chapter 45 - Uniform Probate Code › Article 6 - Nonprobate Transfers › Part 4 - UNIFORM REAL PROPERTY TRANSFER ON DEATH › Section 45-6-412 - Effect of transfer on death deed during transferor's life.

During a transferor's life, a transfer on death deed does not:
A. affect an interest or right of the transferor or any other owner, including the right to transfer or encumber the property;
B. affect an interest or right of a transferee, even if the transferee has actual or constructive notice of the deed;
C. affect an interest or right of a secured or unsecured creditor or future creditor of the transferor, even if the creditor has actual or constructive notice of the deed;
D. affect the transferor's or designated beneficiary's eligibility for any form of public assistance;
E. create a legal or equitable interest in favor of the designated beneficiary; or
F. subject the property to claims or process of a creditor of the designated beneficiary.
History:
1978 Comp., § 45-6-412, enacted by Laws 2013, ch. 38, § 12.
ANNOTATIONS
Effective dates.
— Laws 2013, ch. 38, § 18 provided that Laws 2013, ch. 38, § 12 was effective January 1, 2014.
2023 New Mexico Statutes › Chapter 45 - Uniform Probate Code › Article 6 - Nonprobate Transfers › Part 4 - UNIFORM REAL PROPERTY TRANSFER ON DEATH › Section 45-6-413 - Effect of transfer on death deed at transferor's death.

A. Except as otherwise provided in the transfer on death deed or in Subsection B, C or D of this section or in Section 45-2-603, 45-2-702, 45-2-706, 45-2-707, 45-2-802, 45-2-803 or 45-2-804 NMSA 1978, on the death of the transferor, the following rules apply to property that is the subject of a transfer on death deed and owned by the transferor at death:
(1) provided that the designated beneficiary survives the transferor, the interest in the property is transferred to the designated beneficiary in accordance with the deed;
(2) the interest of a designated beneficiary that fails to survive the transferor lapses;
(3) subject to Paragraph (4) of this subsection, concurrent interests are transferred to the beneficiaries in equal and undivided shares with no right of survivorship; and
(4) if the transferor has identified two or more designated beneficiaries to receive concurrent interests in the property, the share of one that lapses or fails for any reason is transferred to the other, or to the others in proportion to the interest of each in the remaining part of the property held concurrently.
B. Subject to Chapter 14, Article 9 NMSA 1978, a beneficiary takes the property subject to all recorded conveyances, encumbrances, assignments, contracts, mortgages, liens and other recorded interests to which the property is subject at the transferor's death. For purposes of this subsection and Chapter 14, Article 9 NMSA 1978, the recording of the transfer on death deed is deemed to have occurred at the transferor's death.
C. If a transferor is a joint owner and is:
(1) survived by one or more other joint owners, the property that is the subject of a transfer on death deed belongs to the surviving joint owner or owners with right of survivorship; or
(2) the last surviving joint owner, the transfer on death deed is effective.
D. A transfer on death deed transfers property without covenant or warranty of title even if the deed contains a contrary provision.
History:
1978 Comp., § 45-6-413, enacted by Laws 2013, ch. 38, § 13.
ANNOTATIONS
Effective dates.
— Laws 2013, ch. 38, § 18 provided that Laws 2013, ch. 38, § 13 was effective January 1, 2014.
2023 New Mexico Statutes › Chapter 45 - Uniform Probate Code › Article 6 - Nonprobate Transfers › Part 4 - UNIFORM REAL PROPERTY TRANSFER ON DEATH › Section 45-6-414 - Disclaimer.

A beneficiary may disclaim all or part of the beneficiary's interest as provided by the Uniform Disclaimer of Property Interests Act [Chapter 45, Article 2, Part 11 NMSA 1978].
History:
1978 Comp., § 45-6-414, enacted by Laws 2013, ch. 38, § 14.
ANNOTATIONS
Effective dates.
— Laws 2013, ch. 38, § 18 provided that Laws 2013, ch. 38, § 14 was effective January 1, 2014.
2023 New Mexico Statutes › Chapter 45 - Uniform Probate Code › Article 6 - Nonprobate Transfers › Part 4 - UNIFORM REAL PROPERTY TRANSFER ON DEATH › Section 45-6-415 - Liability for creditor claims and statutory allowances.

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, ch. 38, § 15.
ANNOTATIONS
Effective dates.
— Laws 2013, ch. 38, § 18 provided that Laws 2013, ch. 38, § 15 was effective January 1, 2014.
2023 New Mexico Statutes › Chapter 45 - Uniform Probate Code › Article 6 - Nonprobate Transfers › Part 4 - UNIFORM REAL PROPERTY TRANSFER ON DEATH › Section 45-6-417 - Optional form of revocation.

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.
(front of form)
"REVOCATION OF TRANSFER ON DEATH DEED
NOTICE TO OWNER
This revocation must be recorded before you die or it will not be effective. This revocation is effective only as to the interests in the property of owners who sign this revocation.
IDENTIFYING INFORMATION
Owner or Owners of Property Making This Revocation:
____________________________
_____________________________
Printed name
Mailing address
____________________________
_____________________________
Printed name
Mailing address
Legal description of the property:
_______________________________________________________________________
REVOCATION
I revoke all my previous transfers of this property by transfer on death deed.
SIGNATURE OF OWNER OR OWNERS MAKING THIS REVOCATION
____________________________
_____________________________
Signature
Date
____________________________
_____________________________
Signature
Date
ACKNOWLEDGMENT
(insert acknowledgment here)"
(back of form)
"COMMON QUESTIONS ABOUT THE USE OF THIS FORM
How do I use this form to revoke a Transfer on Death (TOD) deed? Complete this form. Have it acknowledged before a notary public or other individual authorized to take acknowledgments. Record the form in the public records in the office of the county clerk of each county where the property is located. The form must be acknowledged and recorded before your death or it has no effect.
How do I find the "legal description" of the property? This information may be on the TOD deed. It may also be available in the office of the county clerk for the county where the property is located. If you are not absolutely sure, consult a lawyer.
How do I "record" the form? Take the completed and acknowledged form to the office of the county clerk of the county where the property is located. Follow the instructions given by the county clerk to make the form part of the official property records. If the property is located in more than one county, you should record the form in each of those counties.
I am being pressured to complete this form. What should I do? Do not complete this form under pressure. Seek help from a trusted family member, friend or lawyer.
I have other questions about this form. What should I do? This form is designed to fit some but not all situations. If you have other questions, consult a lawyer."
History:
1978 Comp., § 45-6-417, enacted by Laws 2013, ch. 38, § 17.
ANNOTATIONS
Effective dates.
— Laws 2013, ch. 38, § 18 provided that Laws 2013, ch. 38, § 17 was effective January 1, 2014.
2023 New Mexico Statutes › Chapter 45 - Uniform Probate Code › Article 7 - Trust Administration › Part 1 - Principal Place Of Administration › Section 45-7-101 to 45-7-104 - Repealed.

History:
1953 Comp., § 32A-7-101, enacted by Laws 1975, ch. 257, § 7-101.
ANNOTATIONS
Repeals.
— Laws 2003, ch. 122, § 11-1105 repealed 45-7-101 to 45-7-104 NMSA 1978, as enacted by Laws 1975, ch. 257, §§ 7-101 to 7-104, relating to the principal place of administration, effective July 1, 2003. For provisions of former sections,
see
the 2002 NMSA 1978 on
NMOneSource.com
.
2023 New Mexico Statutes › Chapter 45 - Uniform Probate Code › Article 7 - Trust Administration › Part 1 - Principal Place Of Administration › Section 45-7-105 - Registration; qualification of foreign trustee.

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 its cotrustee maintains the principal place of administration in New Mexico. Unless otherwise doing business in New Mexico, local qualification by a foreign trustee, corporate or individual, is not required in order for the trustee to receive distribution from a local estate or to hold, invest in, manage or acquire property located in this state, or maintain litigation.
B. Nothing in this section affects a determination of what other acts require qualification as doing business in New Mexico.
History:
1953 Comp., § 32A-7-105, enacted by Laws 1975, ch. 257, § 7-105.
ANNOTATIONS
Cross references.
— For application for certificate of authority for foreign corporation to do business in state,
see
53-17-5 NMSA 1978.
For transacting business without certificate of authority,
see
53-17-20 NMSA 1978.
Law reviews.
— For survey, "Article VII of the New Probate Code: In Pursuit of Uniform Trust Administration," see 6 N.M.L. Rev. 213 (1976).
Am. Jur. 2d, A.L.R. and C.J.S. references. —
76 Am. Jur. 2d Trusts §§ 324, 329.
90 C.J.S. Trusts §§ 204 to 210.
2023 New Mexico Statutes › Chapter 45 - Uniform Probate Code › Article 7 - Trust Administration › Part 2 - Jurisdiction Of Court Concerning › Section 45-7-201 to 45-7-206 - Repealed.

History:
1953 Comp., § 32A-7-201, enacted by Laws 1975, ch. 257, § 7-201.
ANNOTATIONS
Repeals.
— Laws 2003, ch. 122, § 11-1105 repealed 45-7-201 to 45-7-206 NMSA 1978, as enacted by Laws 1975, ch. 257, §§ 7-201 to 7-206, relating to jurisdiction of court concerning trusts, effective July 1, 2003. For provisions of former sections,
see
the 2002 NMSA 1978 on
NMOneSource.com
.
2023 New Mexico Statutes › Chapter 45 - Uniform Probate Code › Article 7 - Trust Administration › Part 3 - Duties And Liabilities Of Trustees › Section 45-7-301 to 45-7-307 - Repealed.

History:
1953 Comp., § 32A-7-301, enacted by Laws 1975, ch. 257, § 7-301.
ANNOTATIONS
Repeals.
— Laws 2003, ch. 122, § 11-1105 repealed 45-7-301 to 45-7-307 NMSA 1978, as enacted by Laws 1975, ch. 257, §§ 7-301 to 7-307, relating to duties and liabilities of trustees, effective July 1, 2003. For provisions of former sections,
see
the 2002 NMSA 1978 on
NMOneSource.com
.
2023 New Mexico Statutes › Chapter 45 - Uniform Probate Code › Article 7 - Trust Administration › Part 4 - Powers Of Trustees › Section 45-7-401 - Repealed.

History:
1953 Comp., § 32A-7-401, enacted by Laws 1975, ch. 257, § 7-401; 1987, ch. 66, § 1.
ANNOTATIONS
Repeals.
— Laws 2003, ch. 122, § 11-1105 repealed 45-7-401 NMSA 1978, as enacted by Laws 1975, ch. 257, § 7-401, relating to powers of trustees, effective July 1, 2003. For provisions of former section,
see
the 2002 NMSA 1978 on
NMOneSource.com
.
2023 New Mexico Statutes › Chapter 45 - Uniform Probate Code › Article 7 - Trust Administration › Part 5 - Custodial Trusts › Section 45-7-501 - Short title.

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.
ANNOTATIONS
Law reviews.
— For article, "The New Mexico Uniform Trust Code," see 34 N.M.L. Rev. 1 (2004).
2023 New Mexico Statutes › Chapter 45 - Uniform Probate Code › Article 7 - Trust Administration › Part 5 - Custodial Trusts › Section 45-7-502 - Definitions.

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 trustee for the individual's use and benefit under the Uniform Custodial Trust Act;
C. "conservator" means a person appointed or qualified by a court to manage the estate of an individual or a person legally authorized to perform substantially the same functions;
D. "court" means the district court of this state;
E. "custodial trust property" means an interest in property transferred to or held under a declaration of trust by a custodial trustee under the Uniform Custodial Trust Act and the income from and proceeds of that interest;
F. "custodial trustee" means a person designated as trustee of a custodial trust under the Uniform Custodial Trust Act or a substitute or successor to the person designated;
G. "guardian" means a person appointed or qualified by a court as a guardian of an individual, including a limited guardian, but not a person who is only a guardian ad litem;
H. "incapacitated" means lacking the ability to manage property and business affairs effectively by reason of mental illness, mental deficiency, physical illness or disability, chronic use of drugs, chronic intoxication, confinement, detention by a foreign power, disappearance, minority or other disabling cause;
I. "legal representative" means a personal representative or conservator;
J. "member of the beneficiary's family" means a beneficiary's spouse, descendant, stepchild, parent, stepparent, grandparent, brother, sister, uncle or aunt, whether of the whole or half blood or by adoption;
K. "person" means an individual, corporation, business trust, estate, trust, partnership, joint venture, association or any other legal or commercial entity;
L. "personal representative" means an executor, administrator or special administrator of a decedent's estate, a person legally authorized to perform substantially the same functions or a successor to any of them;
M. "state" means a state, territory or possession of the United States, the district of Columbia or the commonwealth of Puerto Rico;
N. "transferor" means a person who creates a custodial trust by transfer or declaration; and
O. "trust company" means a financial institution, corporation or other legal entity authorized to exercise general trust powers.
History:
1978 Comp., § 45-7-502, enacted by Laws 1992, ch. 66, § 49.
2023 New Mexico Statutes › Chapter 45 - Uniform Probate Code › Article 7 - Trust Administration › Part 5 - Custodial Trusts › Section 45-7-503 - Custodial trust; general.

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 transferee is designated, in substance, as custodial trustee under the Uniform Custodial Trust Act [45-7-501 to 45-7-522 NMSA 1978].
B. A person may create a custodial trust of property by a written declaration, evidenced by registration of the property or by other instrument of declaration executed in any lawful manner, describing the property and naming as beneficiary an individual other than the declarant, in which the declarant as titleholder is designated, in substance, as custodial trustee under the Uniform Custodial Trust Act. A registration or other declaration of trust for the sole benefit of the declarant is not a custodial trust under that act.
C. Title to custodial trust property is in the custodial trustee and the beneficial interest is in the beneficiary.
D. Except as provided in Subsection E of this section, a transferor may not terminate a custodial trust.
E. The beneficiary, if not incapacitated, or the conservator of an incapacitated beneficiary, may terminate a custodial trust by delivering to the custodial trustee a writing signed by the beneficiary or conservator declaring the termination. If not previously terminated, the custodial trust terminates on the death of the beneficiary.
F. Any person may augment existing custodial trust property by the addition of other property pursuant to the Uniform Custodial Trust Act.
G. The transferor may designate, or authorize the designation of, a successor custodial trustee in the trust instrument.
H. The Uniform Custodial Trust Act does not displace or restrict other means of creating trusts. A trust whose terms do not conform to that act may be enforceable according to its terms under other law.
History:
1978 Comp., § 45-7-503, enacted by Laws 1992, ch. 66, § 50.
2023 New Mexico Statutes › Chapter 45 - Uniform Probate Code › Article 7 - Trust Administration › Part 5 - Custodial Trusts › Section 45-7-504 - Custodial trustee for future payment or transfer.

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 __________________ (name of beneficiary) under the Uniform Custodial Trust Act".
B. Persons may be designated as substitute or successor custodial trustees to whom the property must be paid or transferred in the order named if the first designated custodial trustee is unable or unwilling to serve.
C. A designation under this section may be made in a will, a trust, a deed, a multiple-party account, an insurance policy, an instrument exercising a power of appointment or a writing designating a beneficiary of contractual rights. Otherwise, to be effective, the designation must be registered with or delivered to the fiduciary, payor, issuer or obligor of the future right.
History:
1978 Comp., § 45-7-504, enacted by Laws 1992, ch. 66, § 51.
2023 New Mexico Statutes › Chapter 45 - Uniform Probate Code › Article 7 - Trust Administration › Part 5 - Custodial Trusts › Section 45-7-505 - Form and effect of receipt and acceptance by custodial 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 custodial trust property.
B. The custodial trustee's acceptance may be evidenced by writing stating in substance:
"CUSTODIAL TRUSTEE'S RECEIPT AND ACCEPTANCE
I, __________ (name of custodial trustee) acknowledge receipt of the custodial trust property described below or in the attached instrument and accept the custodial trust as custodial trustee for __________ (name of beneficiary) under the Uniform Custodial Trust Act. I undertake to administer and distribute the custodial trust property pursuant to the Uniform Custodial Trust Act. My obligations as custodial trustee are subject to the directions of the beneficiary unless the beneficiary is designated as, is or becomes incapacitated. The custodial trust property consists of __________.
(Dated:)________________________________________
________________________________________________________________________ ".
(Signature of Custodial Trustee)
C. Upon accepting custodial trust property, a person designated as custodial trustee under the Uniform Custodial Trust Act is subject to personal jurisdiction of the court with respect to any matter relating to the custodial trust.
History:
1978 Comp., § 45-7-505, enacted by Laws 1992, ch. 66, § 52.
2023 New Mexico Statutes › Chapter 45 - Uniform Probate Code › Article 7 - Trust Administration › Part 5 - Custodial Trusts › Section 45-7-506 - Transfer to custodial trustee by fiduciary or obligor; 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 having a conservator may make a transfer to an adult member of the beneficiary's family or to a trust company as custodial trustee for the use and benefit of the incapacitated individual. If the value of the property or the debt exceeds twenty thousand dollars ($20,000), the transfer is not effective unless authorized by the court.
B. A written acknowledgment of delivery, signed by a custodial trustee, is a sufficient receipt and discharge for property transferred to the custodial trustee pursuant to this section.
History:
1978 Comp., § 45-7-506, enacted by Laws 1992, ch. 66, § 53.
2023 New Mexico Statutes › Chapter 45 - Uniform Probate Code › Article 7 - Trust Administration › Part 5 - Custodial Trusts › Section 45-7-507 - Multiple beneficiaries; separate custodial trusts; 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 survivorship is presumed, a right of survivorship does not exist unless the instrument creating the custodial trust specifically provides for a right of survivorship.
B. Custodial trust property held under the Uniform Custodial Trust Act by the same custodial trustee for the use and benefit of the same beneficiary may be administered as a single custodial trust.
C. A custodial trustee of custodial trust property held for more than one beneficiary shall separately account to each beneficiary pursuant to Sections 45-7-508 and 45-7-516 NMSA 1978 for the administration of the custodial trust.
History:
1978 Comp., § 45-7-507, enacted by Laws 1992, ch. 66, § 54; 2019, ch. 221, § 5.
ANNOTATIONS
The 2019 amendment,
effective July 1, 2019, in Subsection A, after "benefit of", deleted "husband and wife" and added "spouse", after "for whom", added "a right of", and after "provides for", added "a right".
Applicability.
— Laws 2019, ch. 221, § 7, provided that the provisions of this act apply to:
A. a governing instrument created before, on or after July 1, 2019;
B. a judicial proceeding commenced on or after July 1, 2019; and
C. a judicial proceeding commenced before July 1, 2019, unless the court finds that application of a particular provision of this act would substantially interfere with the effective conduct of the judicial proceeding or prejudice a right of a party, in which case the particular provision does not apply and the previous law applies.
2023 New Mexico Statutes › Chapter 45 - Uniform Probate Code › Article 7 - Trust Administration › Part 5 - Custodial Trusts › Section 45-7-508 - General duties of custodial trustee.

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 retention of the custodial trust property. In the absence of effective contrary direction by the beneficiary while not incapacitated, the custodial trustee 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 law restricting investments by fiduciaries. However, a custodial trustee, in the custodial trustee's discretion, may retain any custodial trust property received from the transferor. If a custodial trustee has a special skill or expertise or is named custodial trustee on the basis of representation of a special skill or expertise, the custodial trustee shall use that skill or expertise.
C. Subject to Subsection B of this section, a custodial trustee shall take control of and collect, hold, manage, invest and reinvest custodial trust property.
D. A custodial trustee at all times shall keep custodial trust property of which the custodial trustee has control separate from all other property in a manner sufficient to identify it clearly as custodial trust property of the beneficiary. Custodial trust property, the title to which is subject to recordation, is so identified if an appropriate instrument so identifying the property is recorded, and custodial trust property subject to registration is so identified if it is registered, or held in an account in the name of the custodial trustee, designated in substance: "as custodial trustee for __________________ (name of beneficiary) under the Uniform Custodial Trust Act".
E. A custodial trustee shall keep records of all transactions with respect to custodial trust property, including information necessary for the preparation of tax returns, and shall make the records and information available at reasonable times to the beneficiary or legal representative of the beneficiary.
F. The exercise of a durable power of attorney for an incapacitated beneficiary is not effective to terminate or direct the administration or distribution of a custodial trust.
History:
1978 Comp., § 45-7-508, enacted by Laws 1992, ch. 66, § 55.
2023 New Mexico Statutes › Chapter 45 - Uniform Probate Code › Article 7 - Trust Administration › Part 5 - Custodial Trusts › Section 45-7-509 - General powers of custodial trustee.

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 only.
B. This section does not relieve a custodial trustee from liability for a violation of Section 45-7-508 NMSA 1978.
History:
1978 Comp., § 45-7-509, enacted by Laws 1992, ch. 66, § 56.
ANNOTATIONS
Bracketed material.
— The bracketed material was inserted by the compiler and is not part of the law.
2023 New Mexico Statutes › Chapter 45 - Uniform Probate Code › Article 7 - Trust Administration › Part 5 - Custodial Trusts › Section 45-7-510 - Use of custodial trust property.

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 trustee shall expend so much or all of the custodial trust property as the custodial trustee considers advisable for the use and benefit of the beneficiary and individuals who were supported by the beneficiary when the beneficiary became incapacitated, or who are legally entitled to support by the beneficiary. Expenditures may be made in the manner, when, and to the extent that the custodial trustee determines suitable and proper, without court order and without regard to other support, income or property of the beneficiary.
C. A custodial trustee may establish checking, savings or other similar accounts of reasonable amounts under which either the custodial trustee or the beneficiary may withdraw funds from, or draw checks against, the accounts. Funds withdrawn from, or checks written against, the account by the beneficiary are distributions of custodial trust property by the custodial trustee to the beneficiary.
History:
1978 Comp., § 45-7-510, enacted by Laws 1992, ch. 66, § 57.
2023 New Mexico Statutes › Chapter 45 - Uniform Probate Code › Article 7 - Trust Administration › Part 5 - Custodial Trusts › Section 45-7-511 - Determination of incapacity; effect.

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 trustee has determined that the beneficiary is incapacitated.
B. A custodial trustee may determine that the beneficiary is incapacitated in reliance upon:
(1) previous direction or authority given by the beneficiary while not incapacitated, including direction or authority pursuant to a durable power of attorney;
(2) the certificate of the beneficiary's physician; or
(3) other persuasive evidence.
C. If a custodial trustee for an incapacitated beneficiary reasonably concludes that the beneficiary's incapacity has ceased, or that circumstances concerning the beneficiary's ability to manage property and business affairs have changed since the creation of a custodial trust directing administration as for an incapacitated beneficiary, the custodial trustee may administer the trust as for a beneficiary who is not incapacitated.
D. On petition of the beneficiary, the custodial trustee or other person interested in the custodial trust property or the welfare of the beneficiary, the court shall determine whether the beneficiary is incapacitated.
E. Absent determination of incapacity of the beneficiary under Subsection B or D of this section, a custodial trustee who has reason to believe that the beneficiary is incapacitated shall administer the custodial trust in accordance with the provisions of the Uniform Custodial Trust Act [45-7-501 to 45-7-522 NMSA 1978] applicable to an incapacitated beneficiary.
F. Incapacity of a beneficiary does not terminate:
(1) the custodial trust;
(2) any designation of a successor custodial trustee;
(3) rights or powers of the custodial trustee; or
(4) any immunities of third persons acting on instructions of the custodial trustee.
History:
1978 Comp., § 45-7-511, enacted by Laws 1992, ch. 66, § 58.
2023 New Mexico Statutes › Chapter 45 - Uniform Probate Code › Article 7 - Trust Administration › Part 5 - Custodial Trusts › Section 45-7-512 - Exemption of third person from liability.

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 responsible for determining:
A. the validity of the purported custodial trustee's designation;
B. the propriety of, or the authority under the Uniform Custodial Trust Act [45-7-501 to 45-7-522 NMSA 1978] for, any action of the purported custodial trustee;
C. the validity or propriety of an instrument executed or instruction given pursuant to the Uniform Custodial Trust Act either by the person purporting to make a transfer or declaration or by the purported custodial trustee; or
D. the propriety of the application of property vested in the purported custodial trustee.
History:
1978 Comp., § 45-7-512, enacted by Laws 1992, ch. 66, § 59.
2023 New Mexico Statutes › Chapter 45 - Uniform Probate Code › Article 7 - Trust Administration › Part 5 - Custodial Trusts › Section 45-7-513 - Liability to third person.

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 person against the custodial trust property by proceeding against the custodial trustee in a fiduciary capacity, whether or not the custodial trustee or the beneficiary is personally liable.
B. A custodial trustee is not personally liable to a third person:
(1) on a contract properly entered into in a fiduciary capacity unless the custodial trustee fails to reveal that capacity or to identify the custodial trust in the contract; or
(2) for an obligation arising from control of custodial trust property or for a tort committed in the course of the administration of the custodial trust unless the custodial trustee is personally at fault.
C. A beneficiary is not personally liable to a third person for an obligation arising from beneficial ownership of custodial trust property or for a tort committed in the course of administration of the custodial trust unless the beneficiary is personally in possession of the custodial trust property giving rise to the liability or is personally at fault.
D. Subsections B and C of this section do not preclude actions or proceedings to establish liability of the custodial trustee or beneficiary to the extent the person sued is protected as the insured by liability insurance.
History:
1978 Comp., § 45-7-513, enacted by Laws 1992, ch. 66, § 60.
2023 New Mexico Statutes › Chapter 45 - Uniform Probate Code › Article 7 - Trust Administration › Part 5 - Custodial Trusts › Section 45-7-515 - Expenses, compensation and bond of custodial trustee.

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 services;
B. has a noncumulative election, to be made no later than six months after the end of each calendar year, to charge a reasonable compensation for fiduciary services performed during that year; and
C. need not furnish a bond or other security for the faithful performance of fiduciary duties.
History:
1978 Comp., § 45-7-515, enacted by Laws 1992, ch. 66, § 62.
2023 New Mexico Statutes › Chapter 45 - Uniform Probate Code › Article 7 - Trust Administration › Part 5 - Custodial Trusts › Section 45-7-516 - Reporting and accounting by custodial trustee; 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 custodial trust property:
(1) once each year;
(2) upon request at reasonable times by the beneficiary or the beneficiary's legal representative;
(3) upon resignation or removal of the custodial trustee; and
(4) upon termination of the custodial trust.
The statements must be provided to the beneficiary or to the beneficiary's legal representative, if any. Upon termination of the beneficiary's interest, the custodial trustee shall furnish a current statement to the person to whom the custodial trust property is to be delivered.
B. A beneficiary, the beneficiary's legal representative, an adult member of the beneficiary's family, a person interested in the custodial trust property or a person interested in the welfare of the beneficiary may petition the court for an accounting by the custodial trustee or the custodial trustee's legal representative.
C. A successor custodial trustee may petition the court for an accounting by a predecessor custodial trustee.
D. In an action or proceeding under the Uniform Custodial Trust Act [45-7-501 to 45-7-522 NMSA 1978] or in any other proceeding, the court may require or permit the custodial trustee or the custodial trustee's legal representative to account. The custodial trustee or the custodial trustee's legal representative may petition the court for approval of final accounts.
E. If a custodial trustee is removed, the court shall require an accounting and order delivery of the custodial trust property and records to the successor custodial trustee and the execution of all instruments required for transfer of the custodial trust property.
F. On petition of the custodial trustee or any person who could petition for an accounting, the court, after notice to interested persons, may issue instructions to the custodial trustee or review the propriety of the acts of a custodial trustee or the reasonableness of compensation determined by the custodial trustee for the services of the custodial trustee or others.
History:
1978 Comp., § 45-7-516, enacted by Laws 1992, ch. 66, § 63.
2023 New Mexico Statutes › Chapter 45 - Uniform Probate Code › Article 7 - Trust Administration › Part 5 - Custodial Trusts › Section 45-7-517 - Limitations of action against custodial trustee.

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 be paid or delivered or the legal representative of an incapacitated or deceased beneficiary or payee:
(1) who has received a final account or statement fully disclosing the matter unless an action or proceeding to assert the claim is commenced within two years after receipt of the final account or statement; or
(2) who has not received a final account or statement fully disclosing the matter unless an action or proceeding to assert the claim is commenced within three years after the termination of the custodial trust.
B. Except as provided in Subsection C of this section, a claim for relief to recover from a custodial trustee for fraud, misrepresentation or concealment related to the final settlement of the custodial trust or concealment of the existence of the custodial trust, is barred unless an action or proceeding to assert the claim is commenced within five years after the termination of the custodial trust.
C. A claim for relief is not barred by this section if the claimant:
(1) is a minor, until the earlier of two years after the claimant becomes an adult or dies;
(2) is an incapacitated adult, until the earliest of two years after:
(a) the appointment of a conservator;
(b) the removal of the incapacity; or
(c) the death of the claimant; or
(3) was an adult, now deceased, who was not incapacitated, until two years after the claimant's death.
History:
1978 Comp., § 45-7-517, enacted by Laws 1992, ch. 66, § 64.
2023 New Mexico Statutes › Chapter 45 - Uniform Probate Code › Article 7 - Trust Administration › Part 5 - Custodial Trusts › Section 45-7-518 - Distribution on termination.

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
(3) upon the beneficiary's death, in the following order:
(a) as last directed in a writing signed by the deceased beneficiary while not incapacitated and received by the custodial trustee during the life of the deceased beneficiary;
(b) to the survivor of multiple beneficiaries if survivorship is provided for pursuant to Section 45-7-507 NMSA 1978;
(c) as designated in the instrument creating the custodial trust; or
(d) to the estate of the deceased beneficiary.
B. If, when the custodial trust would otherwise terminate, the distributee is incapacitated, the custodial trust continues for the use and benefit of the distributee as beneficiary until the incapacity is removed or the custodial trust is otherwise terminated.
C. Death of a beneficiary does not terminate the power of the custodial trustee to discharge obligations of the custodial trustee or beneficiary incurred before the termination of the custodial trust.
History:
1978 Comp., § 45-7-518, enacted by Laws 1992, ch. 66, § 65.
2023 New Mexico Statutes › Chapter 45 - Uniform Probate Code › Article 7 - Trust Administration › Part 5 - Custodial Trusts › Section 45-7-520 - Applicable law.

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 principal place of business in this state or custodial trust property is located in this state. The custodial trust remains subject to that act despite a later change in residence or principal place of business of the transferor, beneficiary or custodial trustee, or removal of the custodial trust property from this state.
B. A transfer made pursuant to an act of another state substantially similar to the Uniform Custodial Trust Act is governed by the law of that state and may be enforced in this state.
History:
1978 Comp., § 45-7-520, enacted by Laws 1992, ch. 66, § 67.
2023 New Mexico Statutes › Chapter 45 - Uniform Probate Code › Article 7 - Trust Administration › Part 5 - Custodial Trusts › Section 45-7-521 - Uniformity of application and construction.

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. 66, § 68.
2023 New Mexico Statutes › Chapter 45 - Uniform Probate Code › Article 7 - Trust Administration › Part 5 - Custodial Trusts › Section 45-7-522 - Severability.

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 provision or application, and to this end the provisions of that act are severable.
History:
1978 Comp., § 45-7-522, enacted by Laws 1992, ch. 66, § 69.
2023 New Mexico Statutes › Chapter 45 - Uniform Probate Code › Article 7 - Trust Administration › Part 6 - Uniform Prudent Investor Act › Section 45-7-601 - Short title.

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.
ANNOTATIONS
Cross references.
— For fiduciaries and trusts,
see
Chapter 46 NMSA 1978.
Effective dates.
— Laws 1995, ch. 210, § 94 made the Uniform Prudent Investor Act effective July 1, 1995.
Law reviews.
— For article, "The New Mexico Uniform Trust Code," see 34 N.M.L. Rev. 1 (2004).
For student article, "New Mexico's Land Grant and Severance Tax Permanent Funds: Renewable Wealth from Non-Renewable Resources," see 48 Nat. Resources J. 719 (2008).
2023 New Mexico Statutes › Chapter 45 - Uniform Probate Code › Article 7 - Trust Administration › Part 6 - Uniform Prudent Investor Act › Section 45-7-602 - Prudent investor rule.

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. The prudent investor rule, a default rule, may be expanded, restricted, eliminated or otherwise altered by the provisions of a trust. A trustee is not liable to a beneficiary to the extent that the trustee acted in reasonable reliance on the provisions of the trust.
History:
1978 Comp., § 45-7-602, enacted by Laws 1995, ch. 210, § 83.
ANNOTATIONS
Effective dates.
— Laws 1995, ch. 210, § 94 made the Uniform Prudent Investor Act effective July 1, 1995.
2023 New Mexico Statutes › Chapter 45 - Uniform Probate Code › Article 7 - Trust Administration › Part 6 - Uniform Prudent Investor Act › Section 45-7-603 - Standard of care; portfolio strategy; risk and return 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 caution.
B. A trustee's investment and management decisions respecting individual assets must be evaluated not in isolation but in the context of the trust portfolio as a whole and as a part of an overall investment strategy having risk and return objectives reasonably suited to the trust.
C. Among circumstances that a trustee shall consider in investing and managing trust assets are such of the following as are relevant to the trust or its beneficiaries:
(1) general economic conditions;
(2) the possible effect of inflation or deflation;
(3) the expected tax consequences of investment decisions or strategies;
(4) the role that each investment or course of action plays within the overall trust portfolio, which may include financial assets, interest in closely held enterprises, tangible and intangible personal property and real property;
(5) the expected total return from income and the appreciation of capital;
(6) other resources of the beneficiaries;
(7) needs for liquidity, regularity of income and preservation or appreciation of capital; and
(8) an asset's special relationship or special value, if any, to the purposes of the trust or to one or more of the beneficiaries.
D. A trustee shall make a reasonable effort to verify facts relevant to the investment and management of trust assets.
E. A trustee may invest in any kind of property or type of investment consistent with the standards of the Uniform Prudent Investor Act [45-7-601 to 45-7-612 NMSA 1978].
F. A trustee who has special skills or expertise, or is named trustee in reliance upon the trustee's representation that the trustee has special skills or expertise, has a duty to use those special skills or expertise.
History:
1978 Comp., § 45-7-603, enacted by Laws 1995, ch. 210, § 84.
ANNOTATIONS
Effective dates.
— Laws 1995, ch. 210, § 94 made the Uniform Prudent Investor Act effective July 1, 1995.
2023 New Mexico Statutes › Chapter 45 - Uniform Probate Code › Article 7 - Trust Administration › Part 6 - Uniform Prudent Investor Act › Section 45-7-604 - Diversification.

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.
ANNOTATIONS
Effective dates.
— Laws 1995, ch. 210, § 94 made the Uniform Prudent Investor Act effective July 1, 1995.