News & Library

Family Trust Companies

Since 2006, New Hampshire has permitted the formation of family trust companies. A family trust company is a family-owned, non-depository trust company that provides trust, investment, and related services to the family, their trusts, and their businesses. For families that have complex holdings and significant wealth, family trust companies provide structure and governance that can help to streamline management and preserve important oversight. ADVANTAGES OF A FAMILY TRUST COMPANY A family trust company serves as an institutional trustee and as such provides a resolution to trustee succession issues. Family Trust Companies are exempt from SEC registration as they are instead regulated by the New Hampshire Banking Department. The requirements for forming a New Hampshire family trust company make the formation straightforward and easy. Those requirements include having three or more…

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The Modern New Hampshire Directed Trust

New Hampshire’s directed trust statutes provide families with maximum flexibility and control in the creation and ongoing administration of trusts. Unlike traditional trusts, in which the trustee is responsible for all decision making, the New Hampshire directed trust allows the trust’s creator (or “settlor”) to divide the role traditionally held by the trustee among trustees, advisors (such as investment advisors and distribution advisors), and trust protectors. Because a directed trust involves dividing trustee powers among different roles, a directed trust sometimes is called divided trusteeship. Each role can operate within its specific expertise and have a very carefully defined set of responsibilities and liabilities as permitted by New Hampshire law. For example, the trust’s investment advisor might have specialized working knowledge of a family’s closely-held business or unique assets. A…

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Decanting Trusts in New Hampshire

New Hampshire has one of the most flexible and versatile decanting statutes in the nation. Through decanting, a trustee can often eliminate impediments to sound investment or trust administration, better protect trust assets for a family’s benefit, resolve ambiguities and potential disputes, and improve administrative efficiencies. In short, decanting offers trustees a way to fix and modernize trusts that are either not operating as the settlor intended, or not operating at peak efficiency. THE PROCESS OF DECANTING The process of decanting in New Hampshire is straightforward. After creating a new trust instrument that accomplishes what the original trust could not, a trustee may appoint some or all of the assets of the original trust into the new trust. The new trust then governs the management and disposition of those trust…

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