New Mexico § 45-2A-10 - Effect of disability at distribution

§ 45-2A-10. Effect of disability at distribution

A. If property becomes distributable by a personal representative or trustee to an

individual under the age specified in the will or, if the will does not specify an

age, under the age of twenty-three years, or to an individual who the personal representative

or trustee determines cannot effectively manage or apply the property by reason of

mental illness, mental deficiency, physical illness or disability, chronic use of

drugs, chronic intoxication or other cause: (1) the personal representative or trustee, as to principal or income, may distribute

part or all of the property to the distributee directly, by deposit or investment

in the distributee's name or for the distributee's account, or to a guardian or conservator

for the distributee; (2) the personal representative may distribute to the trustee in trust under Paragraph

(3); or (3) the trustee may retain all or any of the property in trust for the distributee

and thereafter at any time the trustee may distribute or apply part or all of the

principal or income to or for the benefit or account of the distributee. B. Unless terminated earlier, a trust under Paragraph (3) of Subsection A of this

section terminates upon the attainment of the required age, removal of the disability

or death of the distributee. Upon termination, the trustee shall distribute the remaining trust property to the

distributee or personal representative of the distributee's estate. C. This section does not apply to distributions to a surviving spouse of the testator.