N.M. Stat. § 46A-10-1008

Current through 2024, ch. 69
Section 46A-10-1008 - Exculpation of trustee
A. A term of a trust relieving a trustee of liability for breach of trust is unenforceable to the extent that it:
(1) relieves the trustee of liability for breach of trust committed in bad faith or with reckless indifference to the purposes of the trust or the interests of the beneficiaries; or
(2) was inserted as the result of an abuse by the trustee of a fiduciary or confidential relationship to the settlor.
B. An exculpatory term drafted or caused to be drafted by the trustee is invalid as an abuse of a fiduciary or confidential relationship unless the trustee proves that the exculpatory term is fair under the circumstances and that its existence and contents were adequately communicated to the settlor.

NMS § 46A-10-1008

Laws 2003, ch. 122, § 10 -1007; recompiled as § 46A-10-1008 by Laws 2007, ch. 128, § 30.