New Hampshire trust: how it works and how to set one up

What a trust in New Hampshire is

In plain terms, a trust is a deed-based arrangement and not a company. Assets pass from the settlor to a trustee, who is their legal owner yet manages them for the beneficiaries named in the deed.

New Hampshire has a Trust Code in RSA 564-B. Since 2017 it also has a section on the settlor of an irrevocable trust, RSA 564-B:5-505A (source: New Hampshire Revised Statutes: Creditor’s Claim).

Where the settlor’s interest is subject to a spendthrift provision, a creditor of the settlor may not reach the interest or a distribution before the settlor receives it (same source).

The deed must contain that provision. The statute treats it as a restriction on transfer that is enforceable under non-bankruptcy law.

Families commonly choose a discretionary trust. The trustee decides on payments and timing, with a letter of wishes from the settlor as guidance. The settlor may update the letter, and the trustee need not follow it.

Do not mistake a trust for concealment. Banks, tax authorities and the trustee need to know the people behind it, and the trustee asks for that before it accepts office.

Continuity is what a trust provides. After the settlor steps back, falls ill or dies, a professional trustee goes on applying the deed.

Who sets up trusts in New Hampshire

This structure suits founders, business owners and families with assets in several countries, and many already have a connection to the United States.

Goals vary. Some families want a portfolio or company shares held for generations, and some want the settlor to remain a possible beneficiary.

Some simply want assets under a framework their advisers know well.

Where you live is not a barrier to starting, but the trustee must check who you are. Without an in-person meeting we add a step, for example a second document set or a first payment from an account in your own name.

A trust that already exists is welcome, and its current trustee can stay while we coordinate the papers and reporting.

If a trust already exists, our trust administration service shows what administration covers once we are appointed.

If you also need a will, a New Hampshire wills and trusts lawyer can cover both and align the will with the trust deed.

Features families ask about

The features that come up most often are four, and each is a tool, not a result.

• Creditor limits. A creditor cannot start a proceeding on a transfer to a spendthrift trust after the later of 4 years, or one year after discovery if it was already a creditor (source: New Hampshire Revised Statutes: Creditor’s Claim).
• Burden of proof. The creditor must prove that the transfer was fraudulent as to that creditor.
• Exceptions. An exception creditor can reach the trust for a child support judgment or for basic alimony, up to set limits.
• Foundations. Under the Foundation Act, a foundation is formed by a certificate filed with the Secretary of State, with a registered agent in the state (source: New Hampshire Revised Statutes: Foundation Act).

The statute also says that forced heirship and similar rights under the laws of any jurisdiction do not reach the settlor’s interest in the trust.

How a court in your own country treats a New Hampshire trust is a question for your lawyer there.

Each rule and its source is set out on the page about the statutes.

What the trustee does

Trustees are bound to follow the deed, put the beneficiaries’ interests first and keep proper records. The work in practice looks like this:

• holding title to the assets and keeping them separate from its own;
• trustee meetings with minutes for each distribution or major decision;
• accounts and an asset report sent to the settlor;
• a periodic refresh of identity checks on the people connected to the trust;
• collecting the self-certification forms used for tax reporting.

A trust advisor or trust protector is any person other than a trustee who has a power or duty over the trust under its terms.

The trust code provides that these powers can include amending the trust for tax changes, appointing a successor and removing a trustee (source: New Hampshire Revised Statutes: Powers).

A creditor cannot compel the settlor to use powers such as a veto on distributions or the power to remove a trustee (source: New Hampshire Revised Statutes: Creditor’s Claim).

Your New Hampshire lawyer confirms who may serve as trustee for the deed you plan. The law and features page covers the rest of the statute.

Documents and steps to start

Expect the trustee to ask for identity documents, evidence of where your money and wealth came from, and the information needed for the trust documents.

The same sequence applies each time: enquiry, identity checks, structure design, drafting, signing, any filings and funding. The step-by-step guide walks through them.

A New Hampshire law firm drafts the deed, with your letter of wishes alongside it. You review the draft with your own lawyer.

The calendar depends on how complete your documents are and on outside parties such as the law firm, the trustee’s checks and the bank.

Cost in brief

Costs fall into three parts: set-up work by the trustee, drafting by the law firm, and charges from others, for example for forming a company or for tax advice. Yearly trustee and administration fees come afterwards.

We publish the set-up fee for a standard trust or foundation; annual administration, event-based work and third-party charges are quoted after we review your case. The cost guide describes what shapes the total.

Ask for a quote and a start date.

Estimates differ even for families with equal assets, because structure, asset types, the number of beneficiaries and the countries involved all alter the workload.

Tax and reporting in brief

Tax follows residency, and the trust, the settlor and each beneficiary can be resident in different places. Your tax adviser confirms the position for your case.

Federal rules matter for many families, and the tax and reporting page goes further.

A non-US person’s estate files Form 706-NA if US-situated assets exceed the IRS threshold at death (source: Internal Revenue Service: Some nonresidents with U.S. assets must file estate tax returns).

From the settlor and other controlling persons the trustee collects tax residence forms, and it holds the records banks require.

Facts we reviewed, with source and date

Each legal fact shown on this page comes from the New Hampshire General Court site or the Internal Revenue Service site, and carries its source and date.

Your lawyer confirms how they apply to your deed.

Choosing between New Hampshire and another place

The main contrast between places is who acts as trustee and where. Each guide explains how; the jurisdictions hub lists every place, all open for new trusts.

Beyond that, weigh three things:

1. Where your family and assets are. A trustee close to the business and the bank is easier to work with.
2. Which place your advisers know best. Their familiarity with the law shortens drafting and review.
3. How much paperwork you want in one hand. One coordinating team means fewer hand-offs.

Your advisers are the right people for tax and legal comparisons between places, as results depend on your residence and your assets rather than on the place on its own.

Use the side-by-side comparison tool to put New Hampshire beside another place. You can also read the set-up guide first.

Tell us what you are planning and ask for a quote.

More general reading on protecting assets from claims is on our wealth structuring and asset protection page.