News & Library

New Hampshire’s Attractive Landscape for Trusts and Trust Companies

  For wealthy families, New Hampshire is one of most attractive states in which to create and manage their trusts. New Hampshire offers a trust- and business-friendly landscape that combines family trust companies, modern trust laws, and a favorable tax environment. That combination facilitates creative trust design and efficient administration, which can more effectively achieve a family’s wealth planning goals. Modern Trust Laws New Hampshire has a robust set of modern trust laws, which afford settlors broad flexibility and creativity in designing trusts well suited to their specific needs and wishes. Those laws facilitate the more efficient administration of trusts and importantly provide a high level of certainty concerning the rights, duties, and powers of settlors, beneficiaries, trustees, trust advisors, and trust protectors. Two important themes run through New Hampshire’s…

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Charitable Lead Trusts

A charitable lead trust (“CLT”) is an irrevocable trust that pays a fixed amount or percentage of trust assets to one or more charities of the settlor’s choosing for a term of years, with the remaining assets eventually going to family members, trusts, or other beneficiaries. The income tax advantages of a CLT will vary depending on its particular form, but generally settlors will recognize estate and gift tax benefit through the use of this technique. CLT STRUCTURES There are two general types of CLTs – a grantor CLT and a nongrantor CLT.  Each can be in the form of a unitrust or an annuity trust.  A grantor CLT provides an income tax deduction on its creation to the settlor, however the settlor is then taxed on all income that will…

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A Brief Timeline of New Hampshire Trust Legislation

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and trustees. 2002 Session Authorized the conversion of existing trusts to total return unitrusts 2003 Session Repealed the rule against perpetuities 2004 Session Adopted the Uniform Trust Code 2005 Session Made technical changes to the Uniform Trust Code provisions to enhance flexibility 2006 Session Enacted the Trust Modernization and Competitiveness Act, which allows for the formation of family trust companies, expressly recognizes trust advisors and…

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