If a trustee is also a beneficiary of the trust and conversion or failure to convert would enhance or diminish the beneficial interest of that trustee, or if possession or exercise of the conversion power by a particular trustee alone would cause any individual to be treated as owner of a part of the trust for federal income tax purposes or cause a part of the trust to be included in the gross estate of any individual for federal estate tax purposes, then that trustee may not participate as a trustee in the exercise of the conversion power, except that:
A. the trustee may petition the court under Subsection C of Section 46-3A-105 NMSA 1978 to order conversion in accordance with this section; and
B. a co-trustee or co-trustees to whom this section does not apply may convert the trust to a total return trust in accordance with Sections 46-3A-105 and 46-3A-106 NMSA 1978.
History: Laws 2005, ch. 329, § 8.
Effective dates. — Laws 2005, ch. 329, § 12 made the act effective July 1, 2005.
Structure New Mexico Statutes
Chapter 46 - Fiduciaries and Trusts
Article 3A - Uniform Principal and Income
Article 1 - DEFINITIONS AND FIDUCIARY DUTIES
Section 46-3A-101 - Short title.
Section 46-3A-102 - Definitions.
Section 46-3A-103 - Fiduciary duties; general principles.
Section 46-3A-104 - Trustee's power to adjust.
Section 46-3A-105 - Conversion to total return trust.
Section 46-3A-106 - Administration of total return trust.
Section 46-3A-107 - Determination of matters in administration.
Section 46-3A-108 - Distribution of total return trust.
Section 46-3A-109 - Restrictions on distributions.