New Mexico Administrative Code › Title 3 - TAXATION › Chapter 8 - ESTATE TAX › Part 8 12 - PAYMENT OF ESTATE TAX › Section 3.8.12.10 - FURNISHING SECURITY FOR PAYMENT OF ESTATE TAX

Current through Register Vol. 35, No. 13, July 16, 2024
A. To be acceptable under the terms of
				Section
				7-7-12
				NMSA 1978, a surety bond must be underwritten by a corporate surety authorized
				to transact business in New Mexico.
B. Other acceptable security may be an
				assignment of a certificate of deposit or a savings account executed by a state
				or national bank or federally insured savings association authorized to do
				business in New Mexico, or by an irrevocable letter of credit issued by a state
				or national bank authorized to do business in New Mexico. Interest, if any,
				accumulating thereon shall accrue to the assignor or customer causing issuance
				of the letter of credit.
C. Example
				1: The form of an acceptable surety bond is:
SURETY BOND FOR PAYMENT TO THE TAXATION AND REVENUE
				  DEPARTMENT OF THE STATE OF NEW MEXICO OF ESTATE TAX LIABILITY.
Bond Number
(_______________)
KNOW ALL PERSONS BY THESE PRESENTS:
That (Principal's Name) as Principal, and (Surety's Name) , a
				  corporate surety authorized to transact business in New Mexico, as Surety, are
				  held and firmly bound unto the Taxation and Revenue Department of the State of
				  New Mexico, as Obligee, in the sum of $_______________ lawful money of the
				  United States, for the payment of which we bind ourselves, our heirs, executors
				  and administrators, successors and assigns, jointly, severally, and firmly by
				  this document.
NOW, THEREFORE, the condition of this obligation is such that
				  if the above Principal shall comply with the applicable statutes of the State
				  of New Mexico and with all regulations and rulings of the Taxation and Revenue
				  Department of the State of New Mexico for the estate of _______________,
				  decedent, concerning reporting and payment of estate tax liability, then the
				  above obligations shall be void; otherwise they shall remain in full force and
				  effect; and if the Principal fails to pay estate tax when due or becomes a
				  delinquent taxpayer pursuant to Section
				  7-1-16 NMSA
				  1978, and the above statutes, regulations and rulings, the above Surety shall
				  pay over to the Taxation and Revenue Department of the State of New Mexico the
				  amount of the tax due up to the stated amount of this bond.
It is understood that the aggregate liability of the Surety
				  shall not exceed the sum of this bond, this bond is continuous in form, and if
				  the Surety shall so elect, this bond may be cancelled by giving thirty days'
				  notice in writing to said Obligee.
Witness/Attest Surety
____________________________
______________________________
____________________________
______________________________
By
______________________________
Attorney-In-Fact
Principal
____________________________
______________________________
____________________________
______________________________
By ______________________________
NOTE: A POWER OF ATTORNEY SHOULD BE ATTACHED
D. Example 2: The form of an acceptable
				agreement of assignment is shown in the following letter:
MODEL LETTER TO BE FOLLOWED BY FINANCIAL
INSTITUTION IN TYPING LETTER ON THEIR LETTERHEAD
DATE:
Taxation and Revenue Department
P.O. Box 630
Santa Fe, New Mexico 87504-0630
Dear Secretary:
This is to certify that (Assignor's Name) has deposited with
				  this institution (Dollar Amount of Deposit) in savings account number, or
				  certificate of deposit number _______________. This amount, exclusive of any
				  interest which may accrue, is being held to meet the security requirements of
				  Section
				  7-7-12
				  NMSA 1978. If the above named depositor fails to pay estate tax when due or at
				  any time becomes a delinquent taxpayer under Section
				  7-1-16 NMSA
				  1978, this institution shall, upon demand of the Secretary of Taxation and
				  Revenue, pay over the aforesaid amount to the Taxation and Revenue Department
				  or so much thereof as the Secretary shall demand.
No withdrawals from the account identified above will be
				  permitted without the written permission of the Taxation and Revenue Department
				  of the State of New Mexico.
Very truly
yours,
BANK
OFFICER
TITLE