N.M. Code R. § 3.8.12.11 – Exceptions to Liability for Failure to Pay Tax Before Distribution or Delivery

A. No liability shall arise under Section 7-7-12 NMSA 1978 by reason of any payment made pursuant to Sections 58-1-8, 58-10-103 or 58-11-64 NMSA 1978, provided that all requirements of those sections are met and that the transferor has acted in good faith. Payments by a savings and loan association, credit union, or bank not in compliance with those sections, or above the amounts specified therein, may result in liability and are fully subject to the provisions of Section 7-7-12 NMSA 1978.
B. Liability is not imposed by Section 7-7-12 NMSA 1978 for the delivery or transfer of property into a New Mexico estate or to the personal representative of the decedent inside New Mexico. A personal representative who is not a resident of New Mexico but who is appointed by a New Mexico court having jurisdiction of an estate, and who is qualified and acting, is not “outside New Mexico” within the meaning of Section 7-7-12 NMSA 1978.
[8/5/74, 9/15/88, 7/15/96; 3.8.12.11 NMAC - Rn & A, 3 NMAC 8.12.11, 12/14/00]