Spurred by our principals’ commitment to make New Hampshire the premier situs for trusts and trust companies in the US, Perspecta has been the chief architect of multiple legislative bills to enhance the trust laws of the state. The following timeline explores some of the key bills that have resulted in a framework of trust laws that carefully safeguards the unique balance between settlors, beneficiaries, and trustees.
Authorized the conversion of existing trusts to total return unitrusts
Repealed the rule against perpetuities
Adopted the Uniform Trust Code
Made technical changes to the Uniform Trust Code provisions to enhance flexibility
Enacted the Trust Modernization and Competitiveness Act, which allows for the formation of family trust companies, expressly recognizes trust advisors and trust protectors, enhances directed trusts, allows quiet trusts, and adopts the Uniform Principal and Income Act
Further modernized existing trust laws by allowing decanting, expanding virtual representation, permitting self-settled spendthrift trusts, and refining rules governing trust advisors and trust protectors
Codified a new chapter for the formation and regulation of private family trust companies
Codified enforcement of no-contest provisions, affirmed the primacy of settlor intent, rejected the benefit-of-the-beneficiaries rule, and clarified the statute of limitations for actions against fiduciaries
Adopted a pass-through regime for a trust’s interest and dividends (and thus, eliminated any interest and dividend tax reporting requirement).
Enhanced protection of settlor intent, provided for lifetime approval of wills and trusts, expanded and clarified decanting statutes, created procedures for disposing of claims against settlors or trusts, provided for the limited liability of beneficiaries, and provided for the enforcement of arbitration or other nonjudicial dispute resolution procedures
Modernized and simplified the laws governing trust companies and family trust companies, allowed nonbank entities to act as trust advisor or trust protector, clarified the limitation period for claims against trustees, trust advisors, and trust protectors, and renamed the trust statutes as the New Hampshire Trust Code