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 assets. Although not required, notice of the decanting may be provided to the trust’s beneficiaries to make them aware of the trustee’s action.
While many aspects of an existing trust may be changed in this process, vested interests must remain intact, the trust’s material purpose may not be violated, and the settlor’s intent must be honored. With those caveats satisfied, a trust’s class of beneficiaries, dispositive provisions, advisor structure, termination date, and other provisions may all be modified. Administrative provisions can be enhanced and modernized and asset management guidelines can be refined. So long as a trustee is acting in a manner that aligns with the settlor’s goals, decanting a New Hampshire trust can be conducted to address a myriad of trust concerns with ease.

HOW PERSPECTA CAN HELP

At Perspecta, we counsel clients on how to effectuate the successful decanting of trusts. We help to steer the technical process while also educating clients on those aspects of their existing instruments can be improved through a decanting. We have helped clients relocate trusts from less favorable jurisdictions to New Hampshire to take advantage of the decanting statute. Please contact us to see how we can help repair, modernize, and improve your trusts through decanting in our state.

Tweet about this on TwitterShare on FacebookEmail this to someoneShare on Google+Share on LinkedIn