New Mexico Statutes
Part 5 - Custodial Trusts
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 proceeding against the custodial trustee in a fiduciary capacity, whether or not the custodial trustee or the beneficiary is personally liable.
B. A custodial trustee is not personally liable to a third person:
(1) on a contract properly entered into in a fiduciary capacity unless the custodial trustee fails to reveal that capacity or to identify the custodial trust in the contract; or
(2) for an obligation arising from control of custodial trust property or for a tort committed in the course of the administration of the custodial trust unless the custodial trustee is personally at fault.
C. A beneficiary is not personally liable to a third person for an obligation arising from beneficial ownership of custodial trust property or for a tort committed in the course of administration of the custodial trust unless the beneficiary is personally in possession of the custodial trust property giving rise to the liability or is personally at fault.
D. Subsections B and C of this section do not preclude actions or proceedings to establish liability of the custodial trustee or beneficiary to the extent the person sued is protected as the insured by liability insurance.
History: 1978 Comp., § 45-7-513, enacted by Laws 1992, ch. 66, § 60.

Structure New Mexico Statutes

New Mexico Statutes

Chapter 45 - Uniform Probate Code

Article 7 - Trust Administration

Part 5 - Custodial Trusts

Section 45-7-501 - Short title.

Section 45-7-502 - Definitions.

Section 45-7-503 - Custodial trust; general.

Section 45-7-504 - Custodial trustee for future payment or transfer.

Section 45-7-505 - Form and effect of receipt and acceptance by custodial trustee; jurisdiction.

Section 45-7-506 - Transfer to custodial trustee by fiduciary or obligor; facility of payment.

Section 45-7-507 - Multiple beneficiaries; separate custodial trusts; survivorship.

Section 45-7-508 - General duties of custodial trustee.

Section 45-7-509 - General powers of custodial trustee.

Section 45-7-510 - Use of custodial trust property.

Section 45-7-511 - Determination of incapacity; effect.

Section 45-7-512 - Exemption of third person from liability.

Section 45-7-513 - Liability to third person.

Section 45-7-514 - Declination, resignation, incapacity, death or removal of custodial trustee; designation of successor custodial trustee.

Section 45-7-515 - Expenses, compensation and bond of custodial trustee.

Section 45-7-516 - Reporting and accounting by custodial trustee; determination of liability of custodial trustee.

Section 45-7-517 - Limitations of action against custodial trustee.

Section 45-7-518 - Distribution on termination.

Section 45-7-519 - Methods and forms for creating custodial trusts.

Section 45-7-520 - Applicable law.

Section 45-7-521 - Uniformity of application and construction.

Section 45-7-522 - Severability.