New Mexico § 45-3-715 - Transactions authorized for personal representatives; exceptions

§ 45-3-715. Transactions authorized for personal representatives; exceptions

A. Except as restricted or otherwise provided by the will or by an order in a formal

proceeding and subject to the priorities stated in Section 45-3-902 NMSA 1978 , a personal representative, acting reasonably for the benefit of the interested persons,

may properly: (1) retain assets owned by the decedent pending distribution or liquidation, including

those in which the representative is personally interested or which are otherwise

improper for trust investment; (2) receive assets from fiduciaries or other sources; (3) perform, compromise or refuse performance of the decedent's contracts that continue

as obligations of the estate, as he may determine under the circumstances. In performing enforceable contracts by the decedent to convey or lease land, the

personal representative, among other possible courses of action, may: (a) execute and deliver a deed of conveyance for cash payment of all sums remaining

due or the purchaser's note for the sum remaining due secured by a mortgage or deed

of trust on the land; or (b) deliver a deed in escrow with directions that the proceeds, when paid in accordance

with the escrow agreement, be paid to the successors of the decedent as designated

in the escrow agreement; (4) satisfy written charitable pledges of the decedent irrespective of whether the

pledges constituted binding obligations of the decedent or were properly presented

as claims, if in the judgment of the personal representative the decedent would have

wanted the pledges completed under the circumstances; (5) if funds are not needed to meet debts and expenses currently payable and are not

immediately distributable, deposit or invest liquid assets of the estate, including

money received from the sale of other assets, in federally insured interest-bearing

accounts, readily marketable secured loan arrangements or other prudent investments

which would be reasonable for use by trustees generally; (6) acquire or dispose of an asset, including land in New Mexico or another state,

for cash or on credit, at public or private sale, and manage, develop, improve, partition

or change the character of an estate asset; (7) make ordinary or extraordinary repairs or alterations in buildings or other structures,

demolish any improvements, or raze existing or erect new party walls or buildings; (8) subdivide, develop or dedicate land to public use, make or obtain the vacation

of plats and adjust boundaries, adjust differences in valuation on exchange or partition

by giving or receiving considerations or dedicate easements to public use without

consideration; (9) enter for any purpose into a lease as lessor or lessee, with or without option

to purchase or renew, for a term within or extending beyond the period of administration; (10) enter into a lease or arrangement for exploration and removal of minerals or

other natural resources or enter into a pooling or unitization agreement; (11) abandon property when, in the opinion of the personal representative, it is valueless

or is so encumbered or is in condition that it is of no benefit to the estate; (12) vote stocks or other securities in person or by general or limited proxy; (13) pay calls, assessments and other sums chargeable or accruing against or on account

of securities unless barred by the provisions relating to claims; (14) hold a security in the name of a nominee or in other form without disclosure

of the interest of the estate, but the personal representative is liable for any act

of the nominee in connection with the security so held; (15) insure the assets of the estate against damage, loss and liability and himself

against liability as to third persons; (16) borrow money with or without security to be repaid from the estate assets or

otherwise and advance money when necessary for the protection or preservation of the

estate; (17) effect a fair and reasonable compromise with any debtor or obligor or extend,

renew or in any manner modify the terms of any obligation owing to the estate. If the personal representative holds a mortgage, pledge or other lien upon property

of another person, he may, in lieu of foreclosure, accept a conveyance or transfer

of encumbered assets from the owner of the assets in satisfaction of the indebtedness

secured by lien; (18) pay taxes, assessments, compensation of the personal representative and other

expenses incident to the administration of the estate; (19) sell or exercise stock subscription or conversion rights or consent, directly

or through a committee or other agent, to the reorganization, consolidation, merger,

dissolution or liquidation of a corporation or other business enterprise; (20) allocate items of income or expense to either estate income or principal as permitted

or provided by law; (21) employ persons, including attorneys, accountants, investment advisors, appraisers

or agents, even if they are associated with the personal representative, to advise

or assist the personal representative in the performance of his administrative duties;

act without independent investigation upon their recommendations; and, instead of

acting personally, employ one or more agents to perform any act of administration,

whether or not discretionary; (22) prosecute or defend claims or proceedings in any jurisdiction for the protection

of the estate and of the personal representative in the performance of his duties; (23) sell, transfer, exchange or otherwise dispose of the estate or any interest in

the estate for cash or on credit or for part cash and part credit at public or private

sale. Security shall be taken for unpaid balances unless waived by order of the district

court upon petition and good cause shown; (24) continue any unincorporated business or venture in which the decedent was engaged

at the time of his death: (a) in the same business form for a period of not more than four months from the date

of appointment of a general personal representative if continuation is a reasonable

means of preserving the value of the business, including good will; (b) in the same business form for any additional period of time that may be approved

by order of the district court in a formal proceeding to which the persons interested

in the estate are parties; or (c) throughout the period of administration if the business is incorporated by the

personal representative and if none of the probable distributees of the business who

are competent adults object to its incorporation and retention in the estate; (25) incorporate any business or venture in which the decedent was engaged at the

time of his death; (26) provide for exoneration of the personal representative from personal liability

in any contract entered into on behalf of the estate; and (27) satisfy and settle claims and distribute the estate as provided in the Uniform

Probate Code. B. The powers granted in Subsection A of this section are given subject to those limitations

contained in other sections of the Uniform Probate Code.