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 […]
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 […]
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: […]
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).
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 […]
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 […]
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”. […]
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 […]
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 […]
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 […]