LegalFix
Sign In

Section 46-3A-109 - Restrictions on distributions.

NM Stat § 46-3A-109 (2019) (N/A)
Copy with citation
Copy as parenthetical citation

A. The distribution amount may not be less than the net income of the trust, determined without regard to the provisions of Sections 46-3A-105 through 46-3A-113 NMSA 1978, for a trust that was exempt, in whole or in part, from generation-skipping transfer tax on July 1, 2005 by reason of any effective date or transition rule.

B. Conversion to a total return trust shall not affect any provisions in the governing instrument:

(1) that directs or authorizes the trustee to distribute principal;

(2) that directs or authorizes the trustee to distribute a fixed annuity or a fixed fraction of the value of trust assets;

(3) that authorizes a beneficiary to withdraw a portion or all of the principal; or

(4) that in any manner diminishes an amount permanently set aside for charitable purposes under the governing instrument unless both income and principal are set aside.

History: Laws 2005, ch. 329, § 7.

Effective dates. — Laws 2005, ch. 329, § 12 made the act effective July 1, 2005.

Previous Section
Section 46-3A-108 - Distribution of total return trust.
Next Section
Section 46-3A-110 - Limitations on conversion.