Certificate of Trust — New Mexico UTC Adopted
State-specific requirements for a Certificate of Trust in New Mexico.Create yours now →
Statutory Citation
NMSA 1978, Chapter 46A (New Mexico Uniform Trust Code), enacted 2003 (Laws 2003, ch. 122), effective July 1, 2003; recompiled 2007 (Laws 2007, ch. 128)
Certification Requirements
NMSA 46A-10-1013. Instead of furnishing the trust instrument to a non-beneficiary, the trustee may furnish a certification of trust containing: (1) that the trust exists and the date the trust instrument was executed; (2) the identity of the settlor; (3) the identity and address of the currently acting trustee; (4) the powers of the trustee; (5) the revocability or irrevocability of the trust and the identity of any person holding a power to revoke; (6) the authority of co-trustees to sign or authenticate and whether all or less than all are required to exercise trustee powers; (7) the trust's taxpayer identification number; (8) the manner of taking title to trust property; (9) if an action is to be undertaken through an agent, that delegation to an agent is not prohibited by the trust instrument. The certification must state that the trust has not been revoked, modified, or amended in any manner that would cause the representations to be incorrect. It need not contain the dispositive terms. A recipient may require the trustee to furnish excerpts from the trust instrument. A person acting in reliance without knowledge of incorrectness is not liable. For real property transactions, the recipient may require the certification to be acknowledged by a trustee so as to allow it to be recorded. A person making a bad-faith demand for the full trust instrument is liable for damages.
Execution Requirements
New Mexico does not require witnesses for trust execution under the NM UTC. Notarization is not required for validity of the trust itself, though it is strongly recommended and often required by financial institutions. For the certification of trust affecting real property title, the recipient may require acknowledgment (notarization) so it can be recorded. New Mexico permits remote online notarization (RON). The trust must be in writing, signed by the settlor, and delivered to the trustee. No recording is required for the trust instrument itself, but deeds transferring real property to the trust must be recorded.
Business Trust Treatment
New Mexico does not have a specific Massachusetts-style business trust statute. Business trusts in New Mexico are governed by common law principles and the NM UTC. The NM UTC applies to express trusts, charitable or noncharitable, including those created for business purposes. New Mexico does not have a separate statutory business trust registration framework. Business trusts operating in New Mexico may be subject to state gross receipts tax and corporate income tax. The NM trust code's broad definition of trust encompasses business trust arrangements. New Mexico's community property laws affect how business trust interests are held by married couples.
Favorable Trust Laws
New Mexico offers moderate trust law advantages. (1) Dynasty Trusts: New Mexico has NOT abolished the rule against perpetuities. NMSA 45-2-901 (Uniform Probate Code) retains the statutory rule against perpetuities, requiring interests to vest or terminate within 21 years after the death of an individual then alive. However, NMSA 45-2-904 provides exceptions for certain interests including property interests held in trust. (2) Asset Protection: New Mexico does not have a self-settled asset protection trust statute; the spendthrift provision does not protect the settlor's interest from the settlor's own creditors. (3) Tax Treatment: New Mexico imposes state income tax on trust income for resident trusts (administered in NM or with at least one NM resident trustee). No state estate or inheritance tax. (4) Decanting: New Mexico adopted the Uniform Trust Decanting Act in 2017 (NMSA 46-12-101 through 46-12-129), allowing trustees to modify trust terms by appointing trust property to a new trust. (5) Community Property: New Mexico is a community property state, which can provide tax advantages for married couples through community property trusts.
Unique Factors
New Mexico's unique trust law factors include: its status as a community property state, which can provide significant tax basis advantages for married couples using community property trusts; the Uniform Trust Decanting Act (2017), which provides flexible trust modification tools; the certification of trust's inclusion of a ninth requirement (agent delegation not prohibited) not found in the model UTC; and the retention of the rule against perpetuities under the Uniform Probate Code (NMSA 45-2-901), which limits dynasty trust planning. New Mexico's trust code is well-integrated with its Uniform Probate Code, providing a cohesive estate planning framework. The state's low cost of living and lack of estate/inheritance tax make it attractive for moderate estate planning, though it lacks the advanced asset protection and dynasty trust features of states like New Hampshire or Delaware.