SB49 (2021) Detail

Relative to the New Hampshire trust code.


CHAPTER 103

SB 49 - FINAL VERSION

 

06/10/2021   1893EBA

2021 SESSION

21-0760

11/05

SENATE BILL 49

 

AN ACT relative to the New Hampshire trust code.

 

SPONSORS: Sen. D'Allesandro, Dist 20; Sen. Bradley, Dist 3; Rep. Hunt, Ches. 11

 

COMMITTEE: Ways and Means

 

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ANALYSIS

 

This bill expands the list of persons who may represent the interests of certain beneficiaries, clarifies the meaning of “second trust” in a decanting, and allows trustees to engage in investing strategies focused on social, environmental, governance, or other values or beliefs of the persons interested in the trust, at the express direction of those persons.

 

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Explanation: Matter added to current law appears in bold italics.

Matter removed from current law appears [in brackets and struckthrough.]

Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

06/10/2021   1893EBA 21-0760

11/05

 

STATE OF NEW HAMPSHIRE

 

In the Year of Our Lord Two Thousand Twenty One

 

AN ACT relative to the New Hampshire trust code.

 

Be it Enacted by the Senate and House of Representatives in General Court convened:

 

  103:1  New Hampshire Trust Code; Representation by Fiduciaries and Parents.  Amend RSA 564-B:3-303(6)-(7) to read as follows:

(6)  a personal representative of a decedent's estate may represent and bind persons interested in the estate except as to matters relating to the administration or distribution of the estate; [and]

(7)  a parent may represent and bind (i) the parent's minor, incapacitated or unborn child if neither a guardian of the estate nor guardian of the person for the child has been appointed and (ii) a minor, incapacitated or unborn descendent of such child if neither a guardian of the estate of the descendent nor a guardian of the person of the descendent has been appointed; and

(8)  a representative who is expressly appointed under the terms of the governing trust instrument, either directly or by appointment of one or more persons who are expressly authorized under the terms of the trust instrument to do so, may represent and bind one or more beneficiaries of the trust as to any matter involving the trust.  A representative appointed pursuant to this paragraph shall be presumed to be a fiduciary and, unless otherwise provided under the terms of the trust, must deliver to the trustee a written acceptance of appointment as representative.  A representative may not be appointed pursuant to this paragraph to represent the interests of a charitable beneficiary subject to the authority of the director of charitable trusts, as provided in statute and common law.

103:2  New Paragraph; New Hampshire Trust Code; Trustee's Power to Decant Trust.  Amend RSA 564-B:4-418 by inserting after paragraph (a) the following new paragraph:

(a-1)(1)  For purposes of this section, “second trust” means:  (A) an irrevocable trust already in existence, whether created by the settlor of the first trust or a different settlor; (B) a trust that is a complete restatement of the first trust, which may be created by the authorized fiduciary of the first trust or another person as the nominal grantor; (C) the first trust as modified to create the second trust; or (D) a new trust created by the authorized fiduciary or another person as the nominal settlor for the purpose of decanting.  

(2)  If a second trust is created by restating or modifying the first trust: (A) the second trust may, but need not, have the same name as the first trust; and (B) the second trust may, but need not, obtain a new taxpayer identification number.  If no new taxpayer identification number is obtained, the second trust may continue to use the taxpayer identification number of the first trust.

103:3  New Hampshire Trust Code; Decanting; Second Trust.  Amend RSA 564-B:4-418(q)(3) to read as follows:

(3)  All title to real property and other property owned by the first trust and all contractual rights possessed by the first trust are vested in the second trust without reversion or impairment, subject to the provisions of paragraph (b); and

103:4  Uniform Prudent Investor Act; Prudent Investor Rule.  Amend RSA 564-B:9-901(b) to read as follows:

(b)  The prudent investor rule may be expanded, restricted, eliminated, or otherwise altered by the terms of the trust except as provided in RSA 564-B:1-105(b)(2) and (3).  A trustee is not liable to a beneficiary to the extent that the trustee acted in good faith and reasonable reliance on (1) the [provisions] express terms of the trust, [or] (2) a court order, [or determined not to diversify the investments of a trust in good faith in reliance on the express terms of the trust or a court order or pursuant to] (3) RSA 564-B:9-903, or (4) RSA 564-B:9-902(c)(10).

103:5  Uniform Prudent Investor Act; Standard of Care; Portfolio Strategy; Risk and Return Objectives.  Amend RSA 564-B:9-902(c)(8)-(9) to read as follows:

(8)  needs for liquidity, regularity of income, and preservation or appreciation of capital; [and]

(9)  an asset's special relationship or special value, if any, to the purposes of the trust or to one or more of the beneficiaries[.]; and

(10)  unless contrary to settlor intent or otherwise prohibited by RSA 564-B:1-111(c), for a trust not subject to RSA 292-B, the expressed wishes of the interested persons of the trust, including where applicable the director of charitable trusts as described in RSA 564-B:1-111(a), as reflected in a nonjudicial settlement agreement pursuant to RSA 564-B:1-111, to have the trustee, trust advisor, or trust protector engage in investing strategies that align with the interested persons' social, environmental, or governance objectives or other values or beliefs of the interested persons, regardless of investment performance.

103:6  Effective Date.  This act shall take effect 60 days after its passage.

 

Approved: July 01, 2021

Effective Date: August 30, 2021

Links

SB49 at GenCourtMobile
SB49 Discussion

Action Dates

Date Body Type
Jan. 27, 2021 Senate Hearing
Feb. 4, 2021 Senate Floor Vote
March 30, 2021 House Hearing
May 13, 2021 House Exec Session
House Floor Vote

Bill Text Revisions

SB49 Revision: 32800 Date: July 1, 2021, 2:44 p.m.
SB49 Revision: 32599 Date: June 16, 2021, 3:53 p.m.
SB49 Revision: 31999 Date: Jan. 19, 2021, 11:42 a.m.

Docket


July 1, 2021: Signed by the Governor on 07/01/2021; Chapter 0103; Effective 08/30/2021


June 24, 2021: Enrolled Adopted, VV, (In recess 06/24/2021); SJ 20


June 24, 2021: Enrolled (in recess of) 06/24/2021


June 10, 2021: Enrolled Bill Amendment # 2021-1893e Adopted, VV, (In recess of 06/10/2021); SJ 20


June 10, 2021: Enrolled Bill Amendment # 2021-1893e: AA VV (in recess of) 06/10/2021 HJ 10 P. 23


June 3, 2021: Ought to Pass: MA VV 06/03/2021 HJ 8 P. 3


: Committee Report: Ought to Pass (Vote 19-0; CC) HC 26 P. 4


May 13, 2021: Executive Session: 05/13/2021 10:00 am Members of the public may attend using the following link: To join the webinar: https://www.zoom.us/j/93883325643


March 30, 2021: Public Hearing: 03/30/2021 09:30 am Members of the public may attend using the following link: To join the webinar: https://www.zoom.us/j/99157160886 / Executive session on pending legislation may be held throughout the day (time permitting) from the time the committee is initially convened.


Feb. 25, 2021: Introduced (in recess of) 02/25/2021 and referred to Commerce and Consumer Affairs HJ 4 P. 48


Feb. 4, 2021: Ought to Pass: RC 23Y-1N, MA; OT3rdg; 02/04/2021; SJ 3


Feb. 4, 2021: Committee Report: Ought to Pass, 02/04/2021; Vote 5-0; CC; SC 10


Jan. 27, 2021: Remote Hearing: 01/27/2021, 01:15 pm; Links to join the hearing can be found in the Senate Calendar; SC 8


Jan. 6, 2021: Introduced 01/06/2021 and Referred to Ways and Means; SJ 3