New Mexico § 46-3A-408 - Insubstantial allocations not required
Full text of New Mexico New Mexico Statutes Annotated § 46-3A-408 — Insubstantial allocations not required, with citation guidance and answers to common questions.
§ 46-3A-408. Insubstantial allocations not required
If a trustee determines that an allocation between principal and income required by
Section 409, 410, 411, 412 or 415 is insubstantial, the trustee may allocate the entire
amount to principal unless one of the circumstances described in Section 104(c) applies
to the allocation. This power may be exercised by a cotrustee in the circumstances described in Section
104(d) and may be released for the reasons and in the manner described in Section
104(e). An allocation is presumed to be insubstantial if: (1) the amount of the allocation would increase or decrease net income in an accounting
period, as determined before the allocation, by less than ten percent; or (2) the value of the asset producing the receipt for which the allocation would be
made is less than ten percent of the total value of the trust's assets at the beginning
of the accounting period.
Source: official New Mexico text · Last verified 2026-08-27
Frequently Asked Questions About New Mexico § 46-3A-408
What does New Mexico Statutes Annotated § 46-3A-408 cover?
Section 46-3A-408 ("Insubstantial allocations not required") is part of the New Mexico Statutes Annotated, the codified statutory law of New Mexico. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite New Mexico § 46-3A-408?
A common citation format is "New Mexico Statutes Annotated § 46-3A-408" (New Mexico). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of New Mexico law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the New Mexico official source linked on this page or consult a licensed New Mexico attorney.
How does New Mexico § 46-3A-408 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in New Mexico can advise on how this section applies to you. Contact your state or local bar association for a referral.
Sources & Verification
Not legal advice. Verify against the official source and consult a licensed attorney in New Mexico.