New Mexico Statutes 46A-4-402. Requirements for creation
A. A trust is created only if:
Terms Used In New Mexico Statutes 46A-4-402
- Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. Source: OCC
- Trustee: A person or institution holding and administering property in trust.
(1) the settlor has capacity to create a trust;
(2) the settlor indicates an intention to create the trust; (3) the trust has a definite beneficiary or is:
(a) a charitable trust;
(b) a trust for the care of an animal, as provided in Section 4-408 [46A-4-408 N.M. Stat. Ann.] of the Uniform Trust Code; or
(c) a trust for a noncharitable purpose, as provided in Section 4-409 [46A-4- 409 NMSA 1978] of the Uniform Trust Code;
(4) the trustee has duties to perform; and
(5) the same person is not the sole trustee and sole beneficiary.
B. A beneficiary is definite if the beneficiary can be ascertained now or in the future, subject to any applicable rule against perpetuities.
C. A power in a trustee to select a beneficiary from an indefinite class is valid. If the power is not exercised within a reasonable time, the power fails and the property subject to the power passes to the persons who would have taken the property had the power not been conferred.