New Mexico § 46-3A-110 - Limitations on conversion

§ 46-3A-110. Limitations on conversion

If a trustee is also a beneficiary of the trust and conversion or failure to convert

would enhance or diminish the beneficial interest of that trustee, or if possession

or exercise of the conversion power by a particular trustee alone would cause any

individual to be treated as owner of a part of the trust for federal income tax purposes

or cause a part of the trust to be included in the gross estate of any individual

for federal estate tax purposes, then that trustee may not participate as a trustee

in the exercise of the conversion power, except that: A. the trustee may petition the court under Subsection C of Section 46-3A-105 NMSA 1978 to order conversion in accordance with this section; and B. a co-trustee or co-trustees to whom this section does not apply may convert the

trust to a total return trust in accordance with Sections 46-3A-105 and 46-3A-106 NMSA 1978 .