NMSA 1978 ch. 45, art. 3, pt. 11 — COMPROMISE OF CONTROVERSIES | New Mexico Statutes Annotated 1978 (through the 2026 session) — New Mexico

NMSA 1978, § 45-3-1101 Effect of approval of agreements involving trusts, inalienable interests or interests of third persons

45-3-1101. Effect of approval of agreements involving trusts, inalienable interests or interests of third persons A. A compromise of any controversy is binding on all the parties thereto as to any lawful matter involving the estate. Matters that may be resolved by the compromise include: (1) admission to probate of any instrument offered for formal probate as the will of a decedent; (2) the construction, validity or effect of any governing instrument; (3) the rights or interests in the estate of the decedent; (4) the rights or interests of any successor; and (5) the administration of the estate, if approved in a formal proceeding in the district court for that purpose. B. A court-approved compromise is binding even though it may affect a trust or an inalienable interest. A compromise does not impair the rights of creditors or of taxing authorities that are not parties to it. 1953 Comp., § 32A-3-1101, enacted by Laws 1975, ch. 257, § 3-1101; 1995, ch. 210, § 46; 2016, ch. 69, § 721.

NMSA 1978, § 45-3-1102 Procedure for securing court approval of compromise

45-3-1102. Procedure for securing court approval of compromise The procedure for securing court approval of a compromise is as follows: A. the terms of the compromise shall be set forth in an agreement in writing that shall be executed by all persons or their representatives having beneficial interests or having claims that will or may be affected by the compromise; B. any interested person, or the person's representative, including the personal representative, if any, or a trustee, may then submit the agreement to the district court for its approval and for execution by the personal representative, the trustee of every affected testamentary trust and other fiduciaries and representatives; and C. after notice to all interested persons or their representatives, including the personal representative of any estate and all affected trustees of trusts, the district court, if it finds that an actual contest or controversy exists and that the effect of the agreement upon the interests of persons represented by fiduciaries or other representatives is just and reasonable, shall make an order approving the agreement and directing all fiduciaries under its supervision to execute the agreement. Minor children represented only by their parents may be bound only if their parents join with other persons or their representatives in execution of the compromise. Upon the making of the order and the execution of the agreement, all further disposition of the estate shall then be made in accordance with the terms of the agreement. 1953 Comp., § 32A-3-1102, enacted by Laws 1975, ch. 257, § 3-1102; 1995, ch. 210, § 47; 2016, ch. 69, § 722.