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Section 46-14-9 - Duty and liability of directed trustee — New Mexico Law | CourtGPT
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New Mexico Legal Code

Section 46-14-9 - Duty and liability of directed trustee

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A. Subject to Subsection B of this section, a directed trustee shall take reasonable action to comply with a trust director's exercise or nonexercise of a power of direction or further power under Paragraph (1) of Subsection B of Section 6 [46-14-6 NMSA 1978] of the Uniform Directed Trust Act, and the trustee is not liable for the action. B. A directed trustee shall not comply with a trust director's exercise or nonexercise of a power of direction or further power under Paragraph (1) of Subsection B of Section 6 of the Uniform Directed Trust Act to the extent that, by complying, the trustee would engage in willful misconduct. C. An exercise of a power of direction under which a trust director may release a trustee or another trust director from liability for breach of trust is not effective if: (1) the breach involved the trustee's or other director's willful misconduct; (2) the release was induced by improper conduct of the trustee or other director in procuring the release; or (3) at the time of the release, the director did not know the material facts relating to the breach. D. A directed trustee that has reasonable doubt about its duty under this section may petition the

(3) at the time of the release, the director did not know the material facts relating to the breach. D. A directed trustee that has reasonable doubt about its duty under this section may petition the district court for instructions. E. The terms of a trust may impose a duty or liability on a directed trustee in addition to the duties and liabilities imposed by the Uniform Directed Trust Act. History: Laws 2018, ch. 63, § 9. ANNOTATIONSEffective dates. — Laws 2018, ch. 63, § 25 makes Laws 2018, ch. 63, § 9 effective January 1, 2019.