New Mexico Statutes 46-3A-109. Restrictions on distributions
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 N.M. Stat. Ann., 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.
Terms Used In New Mexico Statutes 46-3A-109
- Annuity: A periodic (usually annual) payment of a fixed sum of money for either the life of the recipient or for a fixed number of years. A series of payments under a contract from an insurance company, a trust company, or an individual. Annuity payments are made at regular intervals over a period of more than one full year.
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. Source: OCC
- Trustee: A person or institution holding and administering property in trust.
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.