REVOCABLE LIVING TRUST AGREEMENT

(New Mexico – N.M. Stat. Ann. § 46A-1-101 et seq.)

[// GUIDANCE: This template is drafted for estate-planning attorneys licensed in New Mexico. Customize bracketed items, confirm tax implications, and attach asset schedules/deeds/assignments as appropriate before execution.]

I. DOCUMENT HEADER

A. Parties
This Revocable Living Trust Agreement (“Trust Agreement”) is made and entered into effective as of [EFFECTIVE DATE] (the “Effective Date”) by and between:

1. [GRANTOR / SETTLOR FULL LEGAL NAME], an individual residing at [ADDRESS] (“Grantor” or “Settlor”); and
2. [INITIAL TRUSTEE FULL LEGAL NAME], whose address is [ADDRESS] (“Initial Trustee”).

Grantor and Trustee may be referred to herein collectively as the “Parties.”

B. Recitals
WHEREAS, Grantor desires to create a revocable trust under the New Mexico Uniform Trust Code, N.M. Stat. Ann. § 46A-1-101 et seq., for the management and disposition of the Trust Estate (as defined below); and
WHEREAS, Trustee is willing to accept the trusteeship and administer the Trust Estate pursuant to the terms set forth herein;

NOW, THEREFORE, in consideration of the mutual covenants herein contained and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows:

Table of Contents

1. Definitions
2. Creation & Funding of Trust
3. Revocation & Amendment
4. Administration During Grantor’s Lifetime
5. Incapacity of Grantor
6. Administration Upon Grantor’s Death
7. Trustee Provisions
8. Representations & Warranties
9. Covenants & Restrictions
10. Default & Remedies
11. Risk Allocation
12. Dispute Resolution
13. General Provisions
14. Execution Block
15. Schedule A – Initial Trust Property

II. DEFINITIONS

“Accounting Period” – Each calendar year ending December 31 unless otherwise elected by Trustee.

“Beneficiary” – Any person or entity presently eligible to receive, or designated to receive in the future, distributions from the Trust Estate.

“Disability” – Grantor’s inability to manage property or financial affairs, established by (a) written certification of two licensed physicians or (b) court order of incapacity.

“Dispositive Provisions” – Sections 4, 5, and 6 governing distributions of income and principal.

“Trust Estate” – All property, real or personal, tangible or intangible, transferred to or acquired by the Trust and all reinvestments thereof.

“Trustee” – The person(s) serving from time to time, including any Co-Trustee or Successor Trustee acting under Section 7.

“UTC” – The New Mexico Uniform Trust Code, N.M. Stat. Ann. § 46A-1-101 et seq.

[// GUIDANCE: Add additional defined terms as needed for specialized assets, e.g., “Closely Held Entity Interests.”]

III. OPERATIVE PROVISIONS

3.01 Creation of Trust

Pursuant to UTC § 46A-4-401, Grantor hereby declares and agrees that all property listed on Schedule A, together with any additional property later transferred to the Trustee, shall be held, managed, and distributed by Trustee as a revocable trust known as “[GRANTOR] REVOCABLE LIVING TRUST” (the “Trust”).

3.02 Funding Procedures

a. Tangible & Intangible Personal Property – Title shall be assigned to “[TRUSTEE], Trustee of the [GRANTOR] Revocable Living Trust dated [EFFECTIVE DATE].”
b. Real Property – Grantor shall execute and record a warranty deed (or other appropriate deed) conveying title to Trustee in the manner described in subsection (a).
c. Additional Contributions – Grantor or any third party may at any time transfer additional assets to the Trust, and such assets shall become part of the Trust Estate without further act.

3.03 Revocation & Amendment

a. Right to Revoke – Grantor may revoke this Trust in whole or in part at any time by a signed written instrument delivered to Trustee.
b. Right to Amend – Grantor may amend any provision of this Trust by similar written instrument; provided, however, no amendment shall increase Trustee’s duties without Trustee’s written consent.
c. Effectiveness – Revocation or amendment shall be effective upon receipt by Trustee or on a later date specified therein.

[// GUIDANCE: An oral amendment is insufficient under UTC § 46A-6-602; memorialize all changes in writing.]

IV. REPRESENTATIONS & WARRANTIES

4.01 Grantor’s Capacity – Grantor represents that Grantor has full legal capacity to execute this Trust and to transfer the property listed on Schedule A.

4.02 Title to Property – Grantor warrants good, marketable title to all property transferred to the Trust, free and clear of liens except as disclosed in writing to Trustee.

4.03 Authority of Trustee – Trustee represents that Trustee is not disqualified from serving and accepts the duties imposed herein.

V. COVENANTS & RESTRICTIONS

5.01 Trustee’s Standard of Care – Trustee shall administer the Trust in good faith, in accordance with its terms and purposes, and for the interests of the Beneficiaries, exercising reasonable care, skill, and caution consistent with UTC §§ 46A-8-801 et seq.

5.02 Investment Duties – Trustee shall comply with the prudent investor rule (UTC § 46A-9-901) and diversify investments unless Trustee reasonably determines that the purposes of the Trust are better served without diversification.

5.03 Recordkeeping & Reports – Trustee shall maintain adequate records and, at least annually, provide Grantor (or, after Grantor’s death, the then-current income Beneficiaries) with a written accounting of the Trust Estate.

5.04 Notice of Change – Trustee shall notify the Beneficiaries of any resignation, removal, or vacancy in the trusteeship within thirty (30) days.

VI. DEFAULT & REMEDIES

6.01 Events of Default
a. Breach of Fiduciary Duty by Trustee;
b. Failure to render required accounting within sixty (60) days after written demand;
c. Trustee incapacity or insolvency.

6.02 Cure Period – Grantor or a majority of the adult Beneficiaries may give Trustee written notice specifying the default. Trustee shall have thirty (30) days to cure.

6.03 Remedies – If uncured, remedies include:
1. Removal and replacement of Trustee under Section 7.07;
2. Surcharge against Trustee’s compensation;
3. Application to [COUNTY] District Court (Probate Division) for injunctive or other equitable relief.

Attorney’s Fees – In any action to enforce the Trust, the prevailing party shall be entitled to recover reasonable attorney’s fees and costs from the Trust Estate.

VII. RISK ALLOCATION

7.01 Indemnification of Trustee

To the fullest extent permitted by law, Trustee and Trustee’s agents shall be indemnified and held harmless out of the Trust Estate from and against any and all claims, liabilities, and expenses (including attorney’s fees) incurred by reason of any act or omission within the scope of the trusteeship, except for acts of willful misconduct or gross negligence.

7.02 Limitation of Liability

Trustee’s liability is limited to the value of the Trust Estate; Trustee shall have no personal liability for obligations arising from Trust administration.

7.03 Insurance

Trustee may maintain fiduciary liability insurance, premiums payable from the Trust Estate.

7.04 Force Majeure

Trustee shall not be liable for failure to perform duties when such failure results from events beyond Trustee’s reasonable control, including acts of God, war, terrorism, or governmental action.

VIII. DISPUTE RESOLUTION

8.01 Governing Law – This Trust Agreement and all disputes hereunder shall be governed by the laws of the State of New Mexico, without giving effect to conflict-of-law principles.

8.02 Forum Selection – Exclusive jurisdiction and venue shall lie in the probate or other appropriate division of the [COUNTY] District Court, State of New Mexico.

8.03 Arbitration (Optional) –
[OPTION 1 – STRIKE IF NOT ELECTED]
Any dispute, claim, or controversy arising out of or relating to this Trust shall, at the election of (i) Grantor during lifetime, or (ii) a majority of adult Beneficiaries after Grantor’s death, be resolved by binding arbitration administered by the American Arbitration Association in accordance with its Trust & Estate Arbitration Rules then in effect. Judgment on the award may be entered in any court of competent jurisdiction.
[// GUIDANCE: Omit entirely if arbitration is not desired.]

8.04 Preservation of Injunctive Relief – Nothing herein shall limit the right of any party to seek temporary, preliminary, or permanent injunctive relief from the state probate court to enforce fiduciary duties or prevent irreparable harm.

[// GUIDANCE: No jury-trial waiver is included, per user metadata.]

IX. GENERAL PROVISIONS

9.01 Amendment & Waiver – Except as otherwise provided, no amendment or waiver of any provision shall be valid unless in writing signed by Grantor (while living) and, if the amendment affects Trustee’s duties, acknowledged by Trustee.

9.02 Assignment – Beneficial interests hereunder are not assignable or transferable except as permitted by law; Section 501(a) anti-alienation provisions of ERISA do not apply to this private trust.

9.03 Spendthrift – To the maximum extent permitted by UTC § 46A-5-502, the interests of Beneficiaries shall be held subject to a spendthrift trust, and shall not be subject to voluntary or involuntary alienation.

9.04 Successors & Assigns – This Trust shall be binding upon and inure to the benefit of the Parties and their permitted successors and assigns.

9.05 Severability – If any provision is held invalid or unenforceable, the remaining provisions shall nevertheless continue in full force.

9.06 Entire Agreement – This instrument constitutes the entire agreement between the Parties with respect to the Trust and supersedes all prior agreements, whether written or oral.

9.07 Counterparts; Electronic Signatures – This Trust may be executed in counterparts (each deemed an original) and by electronic signature pursuant to N.M. Uniform Electronic Transactions Act.

X. TRUSTEE PROVISIONS

10.01 Acceptance

By signing below, Trustee accepts the trusteeship and agrees to administer the Trust Estate in accordance with this Agreement and applicable law.

10.02 Compensation

Trustee shall be entitled to reasonable compensation commensurate with services rendered, payable from the Trust Estate, unless waived in writing.

10.03 Resignation

Trustee may resign by written notice to Grantor (if living) or to the adult Beneficiaries and any Co-Trustee, effective thirty (30) days after notice or upon appointment of a Successor Trustee, whichever occurs first.

10.04 Removal

Grantor (while competent), or after Grantor’s death a unanimous vote of adult Beneficiaries, may remove Trustee with or without cause by written notice and appoint a Successor Trustee per Section 10.05.

10.05 Successor Trustee

a. Nomination – [NAME OF PRIMARY SUCCESSOR TRUSTEE] is nominated as first Successor Trustee; [NAME OF SECOND SUCCESSOR TRUSTEE] as alternate.
b. Qualification – A Successor Trustee must be at least 21 years old and not under legal disability.
c. Vesting of Title – Upon acceptance, all right, title, and interest in the Trust Estate shall automatically vest in the Successor Trustee without further act, pursuant to UTC § 46A-7-704.

[// GUIDANCE: Insert corporate fiduciary provisions if a bank or trust company may serve.]

10.06 Co-Trustees

If Co-Trustees serve, decisions shall be made by majority vote unless otherwise specified. Any Co-Trustee may delegate ministerial duties to another Co-Trustee by written instrument.

XI. ADMINISTRATION DURING GRANTOR’S LIFETIME

11.01 Income & Principal – During Grantor’s lifetime, Trustee shall distribute to or for Grantor’s benefit so much of the income and/or principal as Grantor may request. Absent request, Trustee may apply income to pay Grantor’s living expenses, taxes, and medical costs.

11.02 Withdrawal Rights – Grantor may at any time withdraw assets from the Trust by written direction to Trustee.

11.03 Tax Status – The Trust is intended to be a “grantor trust” under Subpart E, Part I, Subchapter J, Chapter 1 of the Internal Revenue Code; all items of income, deduction, and credit shall be reported on Grantor’s personal income tax return.

XII. INCAPACITY OF GRANTOR

12.01 Determination – Grantor’s Disability shall be established under the definition in Section II.

12.02 Effect – Upon Disability, Trustee shall administer the Trust for Grantor’s benefit, applying income or principal as necessary for Grantor’s health, education, support, and maintenance, taking into account any other resources known to Trustee.

12.03 Restoration – Upon written certification from a licensed physician that Grantor has regained capacity, Grantor’s full rights under this Trust shall be restored.

XIII. ADMINISTRATION UPON GRANTOR’S DEATH

13.01 Final Expenses & Taxes – Upon Grantor’s death, Trustee shall first pay (a) Grantor’s legally enforceable debts, (b) funeral and last illness expenses, (c) expenses of estate administration, and (d) estate or inheritance taxes attributable to assets passing under this Trust.

13.02 Dispositive Provisions –
[// GUIDANCE: Customize subsections (A)–(D) to reflect specific beneficiaries, ages, trusts, and distributions.]
a. Specific Bequests – …
b. Marital/Family Trusts – …
c. Residual Trust or Outright Distribution – …

13.03 Termination – The Trust shall terminate upon final distribution of the Trust Estate, whereupon Trustee shall be discharged.

XIV. EXECUTION BLOCK

IN WITNESS WHEREOF, Grantor and Trustee have executed this Revocable Living Trust Agreement as of the Effective Date.

GRANTOR / SETTLOR

[GRANTOR NAME]

INITIAL TRUSTEE

[TRUSTEE NAME], Trustee

ACKNOWLEDGMENT
State of New Mexico )
County of [COUNTY] )

On this ___ day of ____, 20__, before me, the undersigned Notary Public, personally appeared [GRANTOR NAME] and [TRUSTEE NAME], known to me or satisfactorily proven to be the persons whose names are subscribed to the foregoing instrument, and acknowledged that they executed the same for the purposes therein contained.

Notary Public
My Commission Expires: ____

[// GUIDANCE: New Mexico does not require notarization for trust validity; however, acknowledgment facilitates recordation and recognition by third parties.]

XV. SCHEDULE A – INITIAL TRUST PROPERTY

1. Checking Account – [BANK], Account No. [####]
2. Primary Residence – [LEGAL DESCRIPTION], deed to be recorded in [COUNTY], NM
3. Brokerage Account – [FIRM], Account No. [####]
4. Any and all tangible personal property located at [ADDRESS].

[// GUIDANCE: Attach separate schedules or assignments for closely held business interests, intellectual property, or digital assets.]

END OF TEMPLATE