New Mexico § 46-3A-412 - Timber

§ 46-3A-412. Timber

(a) To the extent that a trustee accounts for receipts from the sale of timber and

related products pursuant to this section, the trustee shall allocate the net receipts: (1) to income to the extent that the amount of timber removed from the land does not

exceed the rate of growth of the timber during the accounting periods in which a beneficiary

has a mandatory income interest; (2) to principal to the extent that the amount of timber removed from the land exceeds

the rate of growth of the timber or the net receipts are from the sale of standing

timber; (3) to or between income and principal if the net receipts are from the lease of timberland

or from a contract to cut timber from land owned by a trust, by determining the amount

of timber removed from the land under the lease or contract and applying the rules

in Paragraphs (1) and (2); or (4) to principal to the extent that advance payments, bonuses and other payments are

not allocated pursuant to Paragraph (1), (2) or (3). (b) In determining net receipts to be allocated pursuant to Subsection (a), a trustee

shall deduct and transfer to principal a reasonable amount for depletion. (c) The Uniform Principal and Income Act applies whether or not a decedent or transferor

was harvesting timber from the property before it became subject to the trust. (d) If a trust owns an interest in timberland on the effective date of the Uniform

Principal and Income Act, the trustee may allocate net receipts from the sale of timber

and related products as provided in that act or in the manner used by the trustee

before the effective date of that act. If the trust acquires an interest in timberland after the effective date of the

Uniform Principal and Income Act, the trustee shall allocate net receipts from the

sale of timber and related products as provided in that act.