Property Ownership
In New Mexico, a 'revocable trust' used to hold real property provides which advantage?
AAvoidance of all taxes
BAvoidance of probate while allowing the grantor to retain control and amend or revoke during their lifetime✓ Correct
CAsset protection from creditors
DGuaranteed inheritance by children
Explanation
A revocable living trust avoids probate (property transfers directly to beneficiaries at death) while allowing the grantor full control during their lifetime. It does NOT provide asset protection—the grantor can revoke it.
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Key Terms to Know
Deed
A written legal instrument used to transfer ownership of real property from one party (grantor) to another (grantee).
Joint TenancyCo-ownership where two or more people hold equal, undivided interests with the right of survivorship — when one owner dies, their share passes to the surviving owners.
Debt-to-Income Ratio (DTI)A lender's measure of a borrower's monthly debt obligations relative to their gross monthly income, used to evaluate loan eligibility.
Deed of TrustA security instrument used in many states instead of a mortgage, involving three parties: borrower (trustor), lender (beneficiary), and a neutral trustee.
State-Specific Concepts
DRE Regulation
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