N.M. Stat. § 46-14-9
Duty and liability of directed trustee.
A. Subject to Subsection B of this section, a directed trustee shall take reasonable
action to comply with a trust director's exercise or nonexercise of a power of direction or
further power under Paragraph (1) of Subsection B of Section 6 [46-14-6 NMSA 1978]
of the Uniform Directed Trust Act, and the trustee is not liable for the action.
B. A directed trustee shall not comply with a trust director's exercise or nonexercise
of a power of direction or further power under Paragraph (1) of Subsection B of Section
6 of the Uniform Directed Trust Act to the extent that, by complying, the trustee would
engage in willful misconduct.
C. An exercise of a power of direction under which a trust director may release a
trustee or another trust director from liability for breach of trust is not effective if:
(1)
the breach involved the trustee's or other director's willful misconduct;
(2)
the release was induced by improper conduct of the trustee or other
director in procuring the release; or
(3)
at the time of the release, the director did not know the material facts
relating to the breach.
D. A directed trustee that has reasonable doubt about its duty under this section
may petition the district court for instructions.
E. The terms of a trust may impose a duty or liability on a directed trustee in
addition to the duties and liabilities imposed by the Uniform Directed Trust Act.