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The benefits of creating a New Hampshire trust

New Hampshire is one of the best states to form a trust in. Trusts grant your estate several benefits for taxes that can affect your family for generations.

Setting up a trust in New Hampshire is relatively easy. New Hampshire Trust Code describes five basic requirements for creation. Sometimes, you can even transfer your assets to a New Hampshire trust when you are not a resident. See below for more about the benefits of creating trust and your various options.

Avoid capital gains and income tax

Usually, irrevocable trusts are not subject to capital gains tax. Additionally, beneficiaries of a trust do not have to pay the state income tax on their benefits. However, your heirs will pay taxes according to the state where they reside.

Create trusts in perpetuity

There are many frameworks available for you to set up a trust. For example, perpetual trusts allow you to maintain a trust with no set expiration date. Many states place a limit on the length that trusts can exist. However, in New Hampshire, you can set up a trust that lasts for several generations if you wish.

Decant unwieldy or ineffective trusts

If you are a trust beneficiary or manager, you can use decanting laws to create an entirely new one. Sometimes old trusts become ineffective over time, and simple modifications are insufficient. Luckily beneficiaries can quickly transfer assets to a new trust under current New Hampshire law.

Creating a trust in New Hampshire has many desirable benefits. Whether you wish to designate a new trust or move your assets to a New Hampshire trust, you should be able to set up the framework you desire.