New Mexico § 46-3A-103 - Fiduciary duties; general principles

§ 46-3A-103. Fiduciary duties; general principles

(a) In allocating receipts and disbursements to or between principal and income, and

with respect to any matter within the scope of Articles 2 and 3, a fiduciary: (1) shall administer a trust or estate in accordance with the terms of the trust or

the will, even if there is a different provision in the Uniform Principal and Income

Act; (2) may administer a trust or estate by the exercise of a discretionary power of administration

given to the fiduciary by the terms of the trust or the will, even if the exercise

of the power produces a result different from a result required or permitted by the

Uniform Principal and Income Act; (3) shall administer a trust or estate in accordance with the Uniform Principal and

Income Act if the terms of the trust or the will do not contain a different provision

or do not give the fiduciary a discretionary power of administration; and (4) shall add a receipt or charge a disbursement to principal to the extent that the

terms of the trust and the Uniform Principal and Income Act do not provide a rule

for allocating the receipt or disbursement to or between principal and income. (b) In exercising the power to adjust under Section 104(a) or a discretionary power

of administration regarding a matter within the scope of the Uniform Principal and

Income Act, whether granted by the terms of a trust, a will, or the Uniform Principal

and Income Act, a fiduciary shall administer a trust or estate impartially, based

on what is fair and reasonable to all of the beneficiaries, except to the extent that

the terms of the trust or the will clearly manifest an intention that the fiduciary

shall or may favor one or more of the beneficiaries. A determination in accordance with the Uniform Principal and Income Act is presumed

to be fair and reasonable to all of the beneficiaries.