A trustee shall allocate to income an amount received as a distribution of income from a trust or an estate in which the trust has an interest other than a purchased interest, and shall allocate to principal an amount received as a distribution of principal from such a trust or estate. If a trustee purchases an interest in a trust that is an investment entity, or a decedent or donor transfers an interest in such a trust to a trustee, Section 401 or 415 [46-3A-401 to 46-3A-415 NMSA 1978] applies to a receipt from the trust. History: Laws 2001, ch. 113, § 402. ANNOTATIONSEffective dates. — Laws 2001, ch. 113, § 605 made the Uniform Principal and Income Act effective July 1, 2001.
New Mexico Legal Code