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 45-7-513 – 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 […]
Section 45-7-514 – Declination, resignation, incapacity, death or removal of custodial trustee; designation of successor custodial trustee.
A. Before accepting the custodial trust property, a person designated as custodial trustee may decline to serve by notifying the person who made the designation, the transferor or the transferor’s legal representative. If an event giving rise to a transfer has not occurred, the substitute custodial trustee designated under Section 45-7-504 NMSA 1978 becomes the […]
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 […]
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) […]
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 […]
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 […]
Section 45-7-519 – Methods and forms for creating custodial trusts.
A. If a transaction, including a declaration with respect to or a transfer of specific property, otherwise satisfies applicable law, the criteria of Section 45-7-503 NMSA 1978 are satisfied by: (1) the execution and either delivery to the custodial trustee or recording of an instrument in substantially the following form: “TRANSFER UNDER THE UNIFORM CUSTODIAL […]