What the rule says
New Hampshire abolished the common-law rule against perpetuities for trusts effective January 1, 2004, codified at N.H. Rev. Stat. § 564:24. This change made New Hampshire one of approximately a dozen US states allowing trusts to continue in perpetuity — among the most permissive perpetuity frameworks in the country.
Comparison to other trust situs jurisdictions
| State | Perpetuity | State Income Tax (Trust) | Notes | |-------|------------|--------------------------|-------| | New Hampshire | No limit (since 2004) | No | Strong NE option | | Delaware | No limit (personal property); 110-year (real property) | No (resident trustee) | Established | | Nevada | 365 years | No | Strong DAPT | | Alaska | No limit | No | First DAPT state | | South Dakota | No limit | No | Modern framework | | Wyoming | 1,000 years | No | Less established | | Florida | 360 years | No | No DAPT | | Tennessee | 360 years | Yes (limited) | Hall tax phased out |
New Hampshire combines: - Perpetual trusts (no rule against perpetuities) - No state income tax on trust income - No state estate or inheritance tax - Comprehensive Trust Code with modern provisions - Strong asset protection for spendthrift trusts - Decanting and modification flexibility
Why this matters
The perpetual trust framework enables several distinctive estate planning strategies:
Multi-generational wealth preservation
A dynasty trust holding $13.99M (federal GST exemption) can grow tax-free across generations. With no state income tax in NH, growth is also free of state-level tax, producing dramatic intergenerational wealth accumulation.
Asset protection across generations
Spendthrift provisions in NH trusts protect beneficiaries from creditors, divorce settlements, and other claims for the trust's full duration — potentially perpetually.
Northeast trust situs option
NH provides a Northeastern trust situs option for high-net-worth families who prefer not to use Western states (NV, AK, SD) or Mid-Atlantic options (DE). This is particularly relevant for New York and Boston-area families.
NH Trust Code
NH adopted comprehensive trust modernization with the NH Trust Code, providing:
- Directed trust statute allowing separation of trustee functions - Decanting authority for modifying trust provisions - Domestic Asset Protection Trust framework (similar to NV, AK, SD, DE) - Trust modification flexibility beyond traditional common-law constraints
What you can do about it
For high-net-worth individuals considering dynasty trusts:
- Engage NH counsel. Trust situs planning requires specialized expertise. - Structure for substantial NH nexus. Independent NH trustee, NH governing law, NH situs. - Coordinate with overall estate planning. Dynasty trusts work alongside will, POA, etc.
For non-high-net-worth individuals:
- Dynasty trusts are typically inappropriate. Standard estate planning is more appropriate.
Who this affects most
NH's perpetual dynasty trust framework is most consequential for:
- High-net-worth Northeastern families seeking trust situs alternatives to Delaware - Estate planners coordinating advanced wealth planning - Family offices managing intergenerational wealth - Out-of-state residents establishing NH-situs trusts
NH is one of the most favorable jurisdictions for dynasty trust planning in New England. The framework requires specialized expertise; it is not a DIY tool.