N.M. Stat. § 45-2A-8
Shares of heirs when no surviving spouse.
A. If there is no surviving spouse, the statutory-will estate passes, subject to
Sections 9 and 10 [45-2A-9, 45-2A-10 NMSA 1978], as follows:
(1)
if there is surviving issue, in equal shares to the children of the testator if
all of them survive, otherwise to the surviving issue of the testator by representation; or
(2)
if there is no surviving issue, to the individuals entitled to receive the
estate as if the property were located in this state and the testator had died intestate
domiciled in this state in the proportions so determined.
B. Unless the personal representative determines that a trust would be
uneconomical, property to which Section 9 or 10 applies must be distributed to the
trustee. If the personal representative determines that a trust would be uneconomical,
the property passes under Subsection A of this section free of trust. The discretion
provided in this subsection to the personal representative is not exercisable by any of
the testator's issue serving as personal representative.