How New Hampshire Laws Affect Your Trust Options
In 2009, the state of New Hampshire enacted its own version of the domestic asset protection trust, or DAPT. These irrevocable trusts provide a level of protection from creditors once available only through offshore trusts.
The experienced estate planning lawyers of Cushing & Dolan, P.C., can help you determine if you need a New Hampshire trust and, if so, to ensure it is structured properly to isolate assets to the full extent of the law. Our Boston law firm has helped clients in both New Hampshire and Massachusetts make use of the New Hampshire trust. Arrange a consultation today.
Asset Protection And Trusts
Prior to 2009, many of our clients used the Delaware trust to shield assets. New Hampshire is now one of four jurisdictions in the U.S. that specifically authorize the domestic asset protection trust (DAPT). For our clients with assets vulnerable to liens and other attachments, it eliminates the need to place assets outside of the United States.
Assets in a domestic asset protection trust are held at arm’s length from your estate for creditor protection, but are still available to you (or your spouse or children). The catch is that you cannot dictate distributions. Payments of income or principal for your benefit are solely at the trustee’s discretion.
Under the Qualified Dispositions Act, the trustee must be a company licensed to do business in New Hampshire. Cushing & Dolan works closely with a particular trustee services provider that we have vetted for our clientele.
A New Hampshire trust has many applications, but especially makes sense for professionals, contractors, corporate officers and others who could be personally liable for business-related judgments. After a specified period, most creditors cannot reach the DAPT assets. The few exceptions include court orders for child support or alimony, or civil judgments for a personal injury or death.