A. If exercise of the decanting power would be effective under the Uniform Trust Decanting Act except that the second-trust instrument in part does not comply with the Uniform Trust Decanting Act, the exercise of the power is effective and the following rules apply with respect to the principal of the second trust attributable to the exercise of the power:
(1) a provision in the second-trust instrument that is not permitted under the Uniform Trust Decanting Act is void to the extent necessary to comply with the Uniform Trust Decanting Act; and
(2) a provision required by the Uniform Trust Decanting Act to be in the second-trust instrument that is not contained in the instrument is deemed to be included in the instrument to the extent necessary to comply with the Uniform Trust Decanting Act.
B. If a trustee or other fiduciary of a second trust determines that Subsection A of this section applies to a prior exercise of the decanting power, the fiduciary shall take corrective action consistent with the fiduciary's duties.
History: Laws 2016, ch. 72, § 1-122.
Effective dates. — Laws 2016, ch. 72, § 3-101 made the Uniform Trust Decanting Act, §§ 46-12-101 through 46-12-129 NMSA 1978, effective January 1, 2017.
Structure New Mexico Statutes
Chapter 46 - Fiduciaries and Trusts
Article 12 - Uniform Trust Decanting
Section 46-12-101 - Short title.
Section 46-12-102 - Definitions.
Section 46-12-104 - Fiduciary duty.
Section 46-12-105 - Application; governing law.
Section 46-12-106 - Reasonable reliance.
Section 46-12-107 - Notice; exercise of decanting power.
Section 46-12-108 - Representation.
Section 46-12-109 - Court involvement.
Section 46-12-110 - Formalities.
Section 46-12-111 - Decanting power under expanded distributive discretion.
Section 46-12-112 - Decanting power under limited distributive discretion.
Section 46-12-113 - Trust for beneficiary with disability.
Section 46-12-114 - Protection of charitable interest.
Section 46-12-115 - Trust limitation on decanting.
Section 46-12-116 - Change in compensation.
Section 46-12-117 - Relief from liability and indemnification.
Section 46-12-118 - Removal or replacement of authorized fiduciary.
Section 46-12-119 - Tax-related limitations.
Section 46-12-120 - Duration of second trust.
Section 46-12-121 - Need to distribute not required.
Section 46-12-122 - Saving provision.
Section 46-12-123 - Trust for care of animal.
Section 46-12-124 - Terms of second trust.
Section 46-12-126 - Later-discovered property.
Section 46-12-127 - Obligations.
Section 46-12-128 - Uniformity of application and construction.
Section 46-12-129 - Relation to Electronic Signatures in Global and National Commerce Act.