News & Library

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and trustees. 2002 Session Authorized the conversion of existing trusts to total return unitrusts 2003 Session Repealed the rule against perpetuities 2004 Session Adopted the Uniform Trust Code 2005 Session Made technical changes to the Uniform Trust Code provisions to enhance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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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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