The elimination of the New Hampshire Board of Trust Company Incorporation, described in the main article, demonstrates the responsiveness of the state’s legislature, executive branch, and regulators in the regulation of trust companies. New Hampshire also has extremely advantageous trust laws that make it an attractive place in which to create and administer trusts, for residents and nonresidents alike. The state’s fiduciary laws have recently been changed, with the express purpose of establishing New Hampshire as the premier state in which to establish and administer domestic trusts.

• New Hampshire has enacted the Uniform Trust Code (UTC), which provides for certainty and clear rules regarding the administration of trusts. The UTC is thought to represent the country’s “best thinking” concerning the modern administration of trusts.
• In addition, New Hampshire has modified some provisions to the Uniform Trust Code to make the state’s laws particularly attractive to settlors of trusts. For example, New Hampshire law permits the settlor to opt out of the rule against perpetuities, which enables clients to create so-called “dynasty trusts” that can last for generations. This offers both legal and tax advantages to clients.
• New Hampshire law also allows the settlor of a trust to waive rules about keeping beneficiaries informed about the details of the trust and its administration. Clients often wish to keep the existence of a trust confidential, typically for the beneficiaries’ own protection.
• New Hampshire law permits the use of “trust advisors” and “trust protectors” in the administration of New Hampshire trusts. The expanded role of these fiduciaries and quasi-fiduciaries often aligns with a client’s expressed desire to maintain more certainty and control over the administration of trusts.
• Settlement agreements are now permitted to be entered into by persons interested in the trust, without court approval. This can save the trust time and expense with respect to agreements to: interpret the terms of a trust; address the resignation or appointment of a trustee; determine the liability of a trustee for his or her acts as a fiduciary; and even modify or terminate a trust.
• New Hampshire does not impose any capital gains or other income taxes on New Hampshire trusts. In fact, the New Hampshire legislature recently repealed the tax on interest and dividends generated by non-grantor trusts established in New Hampshire. This favorable rule will be applicable to tax periods ending on or after December 31, 2013. Under the new rules, if a non-grantor trust accumulates interest and dividends inside the trust, it will not be subject to the New Hampshire interest and dividends tax.  In later years, when interest and dividends are actually distributed to trust beneficiaries, non-residents will not be subject to the New Hampshire interest and dividends tax. Residents will be subject to the tax only to the extent of the interest and dividends generated in the year of distribution.