New Mexico § 46-3A-502 Disbursements from principal

New Mexico Statutes

§ 46-3A-502 — Disbursements from principal

New Mexico § 46-3A-502

Ch. 46Fiduciaries and Trusts

Art. 5ALLOCATION OF DISBURSEMENTS

This text of New Mexico § 46-3A-502 (Disbursements from principal) is published on Counsel Stack Legal Research, covering New Mexico primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

N.M. Stat. Ann. § 46-3A-502 (2026).

Text

(a)A trustee shall make the following disbursements from principal:

(1)the remaining one-half of the disbursements described in Section 501(1) and (2) [46-3A-501 NMSA 1978];

(2)all of the trustee's compensation calculated on principal as a fee for acceptance, distribution or termination, and disbursements made to prepare property for sale;

(3)payments on the principal of a trust debt;

(4)expenses of a proceeding that concerns primarily principal, including a proceeding to construe the trust or to protect the trust or its property;

(5)premiums paid on a policy of insurance not described in Section 501(4) [46-3A-501 NMSA 1978] of which the trust is the owner and beneficiary;

(6)estate, inheritance and other transfer taxes, including penalties, apportioned to the trust; and (7) disburs

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(a) A trustee shall make the following disbursements from principal: (1) the remaining one-half of the disbursements described in Section 501(1) and (2) [46-3A-501 NMSA 1978]; (2) all of the trustee's compensation calculated on principal as a fee for acceptance, distribution or termination, and disbursements made to prepare property for sale; (3) payments on the principal of a trust debt; (4) expenses of a proceeding that concerns primarily principal, including a proceeding to construe the trust or to protect the trust or its property; (5) premiums paid on a policy of insurance not described in Section 501(4) [46-3A-501 NMSA 1978] of which the trust is the owner and beneficiary; (6) estate, inheritance and other transfer taxes, including penalties, apportioned to the trust; and (7) disbursements related to environmental matters, including reclamation, assessing environmental conditions, remedying and removing environmental contamination, monitoring remedial activities and the release of substances, preventing future releases of substances, collecting amounts from persons liable or potentially liable for the costs of those activities, penalties imposed under environmental laws or regulations and other payments made to comply with those laws or regulations, statutory or common law claims by third parties and defending claims based on environmental matters. (b) If a principal asset is encumbered with an obligation that requires income from that asset to be paid directly to the creditor, the trustee shall transfer from principal to income an amount equal to the income paid to the creditor in reduction of the principal balance of the obligation.