New Mexico Statutes 46-3A-404. Principal receipts
A trustee shall allocate to principal:
Terms Used In New Mexico Statutes 46-3A-404
- 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
- Contract: A legal written agreement that becomes binding when signed.
- Decedent: A deceased person.
- Trustee: A person or institution holding and administering property in trust.
(1) to the extent not allocated to income under the Uniform Principal and Income Act, assets received from a transferor during the transferor’s lifetime, a decedent‘s estate, a trust with a terminating income interest or a payer under a contract naming the trust or its trustee as beneficiary;
(2) money or other property received from the sale, exchange, liquidation or change in form of a principal asset, including realized profit, subject to Article 4 [46-3A- 401 to 46-3A-415 N.M. Stat. Ann.];
(3) amounts recovered from third parties to reimburse the trust because of disbursements described in Section 502(a)(7) [46-3A-502 N.M. Stat. Ann.] or for other reasons to the extent not based on the loss of income;
(4) proceeds of property taken by eminent domain, but a separate award made for the loss of income with respect to an accounting period during which a current income beneficiary had a mandatory income interest is income;
(5) net income received in an accounting period during which there is no beneficiary to whom a trustee may or must distribute income; and
(6) other receipts as provided in Part 3 [46-3A-408 N.M. Stat. Ann.].