CONCORD, N.H., July 30, 2015 (GLOBE NEWSWIRE) -- On Monday, Governor Maggie Hassan signed into law a bill modernizing and simplifying New Hampshire’s trust company and family trust company laws (also known as private trust companies). The New Hampshire Trust Council (www.nhtrustcouncil.com) supported and helped to write the bill.
“By modernizing and simplifying the trust company and family trust company laws, the new law further enhances New Hampshire’s attractiveness on both the national and international stages as a leading trust jurisdiction,” said Todd D. Mayo, president of the New Hampshire Trust Council and a principal and general counsel of Perspecta Trust (www.perspectatrust.com). Mr. Mayo was a member of the working group that drafted the new law.
The new law simplifies, clarifies, and reorganizes the banking, trust company, and family trust laws. The new law eliminates 21 chapters of statutes—which were sometimes potentially confusing and redundant—and replaces them with just five chapters. The new chapters include a chapter devoted to trust companies and a chapter devoted to family trust companies.
In contrast to many aspects of prior law which were written in another era and often did not reflect the differences between trust companies and other types of banking institutions, the new law is tailored to modern trust law and modern business practices of trust companies and family trust companies.
For trust companies and family trust companies, the new law’s notable features include:
- Creates a streamlined application process for new trust companies and family trust companies.
- Allows a trust company or family trust company to invest its capital consistent with the prudent investor rule.
- Reduces assessments on trust companies and family trust companies, caps the assessments on family trust companies, and generally reduces the reserves for covering liquidation expenses.
- Allows a family trust company to elect whether to define family members using the SEC family office exemption or the traditional method.
- Enables the probate court to supervise the dissolution of a family trust company.
- Allows a corporation or limited liability company to serve as a trust advisor or trust protector without being chartered as a trust company.
The new law is the 10th major piece of trust-related legislation that New Hampshire has adopted within the past decade. New Hampshire has become a leading state for trusts, trust companies, and family trust companies. The state’s attractiveness stems from its innovative laws and favorable tax climate. The state’s trust laws, for example, allow more creative trust design, perpetuate the state’s strong tradition of protecting settlor intent, and facilitate more efficient trust administration. Coupled with those laws, the state also does not impose any income tax on nongrantor trusts. New Hampshire also is the only state with a trust court, a specialty court focusing only complex trust disputes.
About the New Hampshire Trust Council
The New Hampshire Trust Council is a coalition of trust companies, law firms, and others involved in this state’s trust services sector. The Trust Council’s members include Beacon Trust Company, Charter Trust Company, Cleveland, Waters and Bass, Concord Trust Company, Fiduciary Trust of New England, Financial Architects Partners, Hemenway & Barnes, Holland & Knight, Perspecta Trust, and Rath, Young and Pignatelli. For more information, see http//:www.nhtrustcouncil.com.