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 […]
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 […]
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 […]
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 […]
Within a reasonable time after accepting a trusteeship or receiving trust assets, a trustee shall review the trust assets and make and implement decisions concerning the retention and disposition of assets, in order to bring the trust portfolio into compliance with the purposes, terms, distribution requirements and other circumstances of the trust, and with the […]
A trustee shall invest and manage the trust assets solely in the interest of the beneficiaries. History: 1978 Comp., § 45-7-606, enacted by Laws 1995, ch. 210, § 87. ANNOTATIONS Effective dates. — Laws 1995, ch. 210, § 94 made the Uniform Prudent Investor Act effective July 1, 1995.
If a trust has two or more beneficiaries, the trustee shall act impartially in investing and managing the trust assets, taking into account any differing interests of the beneficiaries. History: 1978 Comp., § 45-7-607, enacted by Laws 1995, ch. 210, § 88. ANNOTATIONS Effective dates. — Laws 1995, ch. 210, § 94 made the Uniform […]
In investing and managing trust assets, a trustee may only incur costs that are appropriate and reasonable in relation to the assets, the purposes of the trust and the skills of the trustee. History: 1978 Comp., § 45-7-608, enacted by Laws 1995, ch. 210, § 89. ANNOTATIONS Effective dates. — Laws 1995, ch. 210, § […]
Compliance with the prudent investor rule is determined in light of the facts and circumstances existing at the time of a trustee’s decision or action and not by hindsight. History: 1978 Comp., § 45-7-609, enacted by Laws 1995, ch. 210, § 90. ANNOTATIONS Effective dates. — Laws 1995, ch. 210, § 94 made the Uniform […]
A. A trustee may delegate investment and management functions that a prudent trustee of comparable skills could properly delegate under the circumstances. The trustee shall exercise reasonable care, skill and caution in: (1) selecting an agent; (2) establishing the scope and terms of the delegation, consistent with the purposes and terms of the trust; and […]
The following terms or comparable language in the provisions of a trust, unless otherwise limited or modified, authorizes any investment or strategy permitted under the Uniform Prudent Investor Act [45-7-601 to 45-7-612 NMSA 1978]: “investments permissible by law for investment of trust funds”, “legal investments”, “authorized investments”, “using the judgment and care under the circumstances […]
The Uniform Prudent Investor Act [45-7-601 to 45-7-612 NMSA 1978] applies to trusts existing on and created after its effective date. As applied to trusts existing on its effective date, the Uniform Prudent Investor Act governs only decisions or actions occurring after that date. History: 1978 Comp., § 45-7-612, enacted by Laws 1995, ch. 210, […]
