reglab/statecodes huggingface dataset:
2023 New Hampshire Revised Statutes › Title LVI - Probate Courts and Decedents' Estates › Chapter 564-B - New Hampshire Trust Code › Section 564-B:11-1101 - Uniformity of Application and Construction.

564-B:11-1101 Uniformity of Application and Construction. –
In applying and construing this chapter, primary consideration shall be given to the preservation of the settlor's intent as expressed in the terms of the trust. Secondary consideration shall be given to the following objectives, in no order of priority among them: (1) the protection of the interests of the beneficiaries consistent with the settlor's intent as expressed in the terms of the trust; (2) the promotion of certainty concerning the duties and liabilities of trustees, trust advisors, and trust protectors, including the division of those duties and liabilities among trustees, trust advisors, and trust protectors; and (3) the promotion of the efficient administration of a trust. Tertiary consideration may be given to the promotion of uniformity of the law with respect to its subject matter among states that enact the uniform act upon which this chapter is based.
Source.
2004, 130:1, eff. Oct. 1, 2004. 2014, 195:31, eff. July 1, 2014.
2023 New Hampshire Revised Statutes › Title LVI - Probate Courts and Decedents' Estates › Chapter 564-B - New Hampshire Trust Code › Section 564-B:11-1102 - Electronic Records and Signatures.

564-B:11-1102 Electronic Records and Signatures. –
The provisions of this chapter governing the legal effect, validity, or enforceability of electronic records or electronic signatures, and of contracts formed or performed with the use of such records or signatures, conform to the requirements of Section 102 of the Electronic Signatures in Global and National Commerce Act (15 U.S.C. Section 7002) and supersede, modify, and limit the requirements of the Electronic Signatures in Global and National Commerce Act.
Source.
2004, 130:1, eff. Oct. 1, 2004.
2023 New Hampshire Revised Statutes › Title LVI - Probate Courts and Decedents' Estates › Chapter 564-B - New Hampshire Trust Code › Section 564-B:11-1103 - Severability Clause.

564-B:11-1103 Severability Clause. –
If any provision of this chapter or its application to any person or circumstance is held invalid, the invalidity does not affect other provisions or applications of this chapter which can be given effect without the invalid provision or application, and to this end the provisions of this chapter are severable.
Source.
2004, 130:1, eff. Oct. 1, 2004.
2023 New Hampshire Revised Statutes › Title LVI - Probate Courts and Decedents' Estates › Chapter 564-B - New Hampshire Trust Code › Section 564-B:11-1104 - Application to Existing Relationships.

564-B:11-1104 Application to Existing Relationships. –
(a) Except as otherwise provided in this chapter, on the effective date of this chapter:
(1) this chapter applies to all trusts created before, on, or after its effective date;
(2) this chapter applies to all judicial proceedings concerning trusts commenced on or after its effective date;
(3) this chapter applies to judicial proceedings concerning trusts commenced before its effective date unless the court finds that application of a particular provision of this chapter would substantially interfere with the effective conduct of the judicial proceedings or prejudice the rights of the parties, in which case the particular provision of this chapter does not apply and the superseded law applies;
(4) any rule of construction or presumption provided in this chapter applies to trust instruments executed before the effective date of this chapter unless there is a clear indication of a contrary intent in the terms of the trust; and
(5) an act done before the effective date of this chapter is not affected by this chapter.
(b) If a right is acquired, extinguished, or barred upon the expiration of a prescribed period that has commenced to run under any other statute before the effective date of this chapter, that statute continues to apply to the right even if it has been repealed or superseded.
Source.
2004, 130:1. 2005, 270:33, eff. Sept. 20, 2005.
2023 New Hampshire Revised Statutes › Title LVI - Probate Courts and Decedents' Estates › Chapter 564-B - New Hampshire Trust Code › Section 564-B:12-1201 - Powers of Trust Advisors and Trust Protectors.

564-B:12-1201 Powers of Trust Advisors and Trust Protectors. –
(a) A trust protector or trust advisor is any person, other than a trustee, who under the terms of the trust, an agreement of the qualified beneficiaries, or a court order has a power or duty with respect to a trust, including, without limitation, one or more of the following powers:
(1) the power to modify or amend the trust instrument to achieve favorable tax status or respond to changes in any applicable federal, state, or other tax law affecting the trust, including (without limitation) any rulings, regulations, or other guidance implementing or interpreting such laws;
(2) the power to amend or modify the trust instrument to take advantage of changes in the rule against perpetuities, laws governing restraints on alienation, or other state laws restricting the terms of the trust, the distribution of trust property, or the administration of the trust;
(3) the power to appoint a successor trust protector or trust advisor;
(4) the power to review and approve a trustee's trust reports or accountings;
(5) the power to change the governing law or principal place of administration of the trust;
(6) the power to remove and replace any trust advisor or trust protector for the reasons stated in the trust instrument;
(7) the power to remove a trustee, cotrustee, or successor trustee, for the reasons stated in the trust instrument, and appoint a successor;
(8) the power to consent to a trustee's or cotrustee's action or inaction in making distributions to beneficiaries;
(9) the power to increase or decrease any interest of the beneficiaries in the trust, to grant a power of appointment to one or more trust beneficiaries, or to terminate or amend any power of appointment granted in the trust; however, a modification, amendment or grant of a power of appointment may not grant a beneficial interest in a charitable trust with only charitable beneficiaries to any non-charitable interest or purpose and may not grant a beneficial interest in any trust to the trust protector or trust advisor, or to the estate or for the benefit of the creditors of such trust protector or such trust advisor;
(10) the power to perform a specific duty or function that would normally be required of a trustee or cotrustee;
(11) the power to advise the trustee or cotrustee concerning any beneficiary;
(12) the power to consent to a trustee's or cotrustee's action or inaction relating to investments of trust assets; and
(13) the power to direct the acquisition, disposition, or retention of any trust investment.
(b) To the extent that a trust advisor or trust protector exercises a power in accordance with the terms of the trust, the trust advisor's or trust protector's action is binding upon all other persons.
Source.
2006, 320:67, eff. Aug. 19, 2006. 2008, 374:18, eff. Sept. 9, 2008. 2014, 195:32, eff. July 1, 2014.
2023 New Hampshire Revised Statutes › Title LVI - Probate Courts and Decedents' Estates › Chapter 564-B - New Hampshire Trust Code › Section 564-B:12-1202 - Trust Advisors and Trust Protectors as Fiduciaries.

564-B:12-1202 Trust Advisors and Trust Protectors as Fiduciaries. –
(a) Except as otherwise provided under the terms of the trust, a trust advisor of a noncharitable trust or trust protector of a noncharitable trust is a fiduciary with respect to each power granted to such trust advisor or trust protector. A trust advisor of a charitable trust or a trust protector of a charitable trust is a fiduciary with respect to each power granted to that trust advisor or trust protector. Notwithstanding the breadth of discretion granted to a trust advisor or trust protector under the terms of the trust, including the use of such terms as "absolute," "sole," or "uncontrolled," a trust advisor or trust protector must exercise a discretionary power and otherwise act in good faith and in accordance with the terms of the trust, the purposes of the trust, and the interests of the beneficiaries.
(b) A trust advisor or trust protector is an excluded fiduciary with respect to each power granted or reserved exclusively to any one or more other trustees, trust advisors, or trust protectors.
Source.
2006, 320:67, eff. Aug. 19, 2006. 2008, 374:18, eff. Sept. 9, 2008. 2014, 195:33, eff. July 1, 2014.
2023 New Hampshire Revised Statutes › Title LVI - Probate Courts and Decedents' Estates › Chapter 564-B - New Hampshire Trust Code › Section 564-B:12-1203 - Trust Advisor and Trust Protector Subject to Court Jurisdiction.

564-B:12-1203 Trust Advisor and Trust Protector Subject to Court Jurisdiction. –
(a) By accepting an appointment to serve as a trust advisor or trust protector of a trust that has its principal place of administration in this state or, in accordance with the terms of the trust or applicable law, changes its principal place of administration to this state, the trust advisor or the trust protector shall be subject to the personal jurisdiction of the courts of this state regarding any matter involving the trust.
(b) An investment advisory agreement or other agreement is void to the extent that it purports to limit the personal jurisdiction of the courts under subsection (a).
Source.
2006, 320:67, eff. Aug. 19, 2006. 2008, 374:18, eff. Sept. 9, 2008. 2017, 257:29, eff. July 18, 2017.
2023 New Hampshire Revised Statutes › Title LVI - Probate Courts and Decedents' Estates › Chapter 564-B - New Hampshire Trust Code › Section 564-B:12-1204 - No Duty to Review Actions of Trustee, Trust Advisor, or Trust Protector.

564-B:12-1204 No Duty to Review Actions of Trustee, Trust Advisor, or Trust Protector. –
(a) Whenever, pursuant to the terms of a trust, an agreement of the qualified beneficiaries, or a court order, an excluded fiduciary is to follow the direction of a trustee, trust advisor, or trust protector with respect to investment decisions, distribution decisions, or other decisions of the non-excluded fiduciary, then, except to the extent that the terms of the trust, the agreement of the qualified beneficiaries, or the court order provide otherwise, the excluded fiduciary shall have no duty to:
(1) monitor the conduct of the trustee, trust advisor, or trust protector;
(2) provide advice to the trustee, trust advisor, or trust protector or consult with the trustee, trust advisor, or trust protector; or
(3) communicate with or warn or apprise any beneficiary or third party concerning instances in which the excluded fiduciary would or might have exercised the excluded fiduciary's own discretion in a manner different from the manner directed by the trustee, trust advisor, or trust protector.
(b) Absent clear and convincing evidence to the contrary, the actions of the excluded fiduciary pertaining to matters within the scope of the trustee, trust advisor, or trust protector's authority (such as confirming that the trustee, trust advisor, or trust protector's directions have been carried out and recording and reporting actions taken at the trustee, trust advisor, or trust protector's direction or other information pursuant to RSA 564-B:8-813), shall be presumed to be administrative actions taken by the excluded fiduciary solely to allow the excluded fiduciary to perform those duties assigned to the excluded fiduciary under the terms of the trust, the agreement of the qualified beneficiaries, or the court order, and such administrative actions shall not be deemed to constitute an undertaking by the excluded fiduciary to monitor the trustee, trust advisor, or trust protector or otherwise participate in actions within the scope of the trustee, trust advisor, or trust protector's authority.
Source.
2006, 320:67, eff. Aug. 19, 2006. 2008, 374:18, eff. Sept. 9, 2008.
2023 New Hampshire Revised Statutes › Title LVI - Probate Courts and Decedents' Estates › Chapter 564-B - New Hampshire Trust Code › Section 564-B:12-1205 - Fiduciary's Liability for Action or Inaction of Trustee, Trust Advisor, and Trust Protector.

564-B:12-1205 Fiduciary's Liability for Action or Inaction of Trustee, Trust Advisor, and Trust Protector. –
An excluded fiduciary is not liable for (i) any loss resulting from any action or inaction of a trustee, trust advisor, or trust protector or (ii) any loss that results from the failure of a trustee, trust advisor, or trust protector to take any action proposed by the excluded fiduciary where such action requires the authorization of the trustee, trust advisor, or trust protector, provided that an excluded fiduciary who had a duty to propose such action timely sought but failed to obtain the authorization.
Source.
2006, 320:67, eff. Aug. 19, 2006. 2008, 374:18, eff. Sept. 9, 2008.
2023 New Hampshire Revised Statutes › Title LVI - Probate Courts and Decedents' Estates › Chapter 564-B - New Hampshire Trust Code › Section 564-B:12-1207 - Office of the Trust Advisor or Trust Protector.

564-B:12-1207 Office of the Trust Advisor or Trust Protector. –
(a) A trust advisor or trust protector is subject to the same rules to which a sole trustee would be subject under this chapter in the same circumstances with respect to the following:
(1) Accepting or declining his, her, or its appointment;
(2) Vacancy and appointment of a successor;
(3) Resignation;
(4) Removal; and
(5) Compensation.
(b) A trust advisor or trust protector shall not have an obligation to give bond to secure performance of his, her, or its duties.
(c) Subject to this article 12, a trust advisor or trust protector is subject to the same rules as a sole trustee would be subject under this chapter in the same circumstances with respect to exoneration and indemnification.
Source.
2017, 257:31, eff. July 18, 2017.
2023 New Hampshire Revised Statutes › Title LVI - Probate Courts and Decedents' Estates › Chapter 564-B - New Hampshire Trust Code › Section 564-B:12-1208 - Delegation to an Agent.

564-B:12-1208 Delegation to an Agent. –
(a) A trust advisor or trust protector may delegate to any person, even if that person is associated or affiliated with the trust advisor or trust protector, any duty or power that a prudent trust advisor or trust protector of comparable skills and having the same power or duty could properly delegate under the circumstances.
(b) In delegating to an agent, a trust advisor or trust protector shall exercise reasonable care, skill, and caution in:
(1) Selecting an agent;
(2) Establishing the scope and terms of the delegation, consistent with the trust's purposes and the terms of the trust; and
(3) Periodically reviewing the agent's actions for the purpose of monitoring the agent's performance and compliance with the scope and terms of the delegation.
(c) The exercise of a power includes the performance of any function involving that power.
(d) A trust advisor or trust protector who complies with subsections (a) and (b) is not liable to the beneficiaries or to the trust for an action of the agent to whom the power or duty was delegated.
(e) In performing a delegated duty of power, an agent owes a duty to the trust to exercise reasonable care to comply with the scope and terms of the delegation.
(f) A trust advisor's or trust protector's delegation of a duty, power, or function to an agent under a power of attorney shall not be valid unless the power of attorney expressly refers to the trust advisor or trust protector in his, her, or its capacity as a trust advisor or trust protector of the trust.
(g) In the case of a trust advisor or trust protector who is an individual, the trust advisor's or trust protector's delegation of any duty, power, or function to an agent under a power of attorney shall terminate upon the trust advisor's or trust protector's incapacity unless:
(1) The terms of the trust provide that the delegation may remain effective during the trust advisor's or trust protector's incapacity; and
(2) The power of attorney provide that the delegation does not terminate upon the trust advisor's or trust protector's incapacity.
(h) By accepting a delegation of any duty or power from a trust advisor or trust protector of a trust that has its principal place of administration in this state or subsequently changes its principal place of administration to this state, an agent shall be subject to the personal jurisdiction of the courts of this state regarding any matter involving the trust.
(i) This section does not apply to the delegation of a duty or power to a trustee, trust advisor, or trust protector to the extent that, under the terms of the trust, the trustee, trust advisor, or trust protector is vested with the delegated duty or power.
Source.
2017, 257:31, eff. July 18, 2017.
2023 New Hampshire Revised Statutes › Title LVI - Probate Courts and Decedents' Estates › Chapter 564-B - New Hampshire Trust Code › Section 564-B:12-1209 - Delegation to a Trustee, Trust Advisor, or Trust Protector.

564-B:12-1209 Delegation to a Trustee, Trust Advisor, or Trust Protector. –
(a) Subject to subsection (b), a trust advisor or trust protector may delegate to any trustee, trust advisor, or trust protector, even if that person is associated or affiliated with the trust advisor or trust protector, any duty or power that a prudent trust advisor or trust protector of comparable skills could properly delegate under the circumstances.
(b) A trust advisor or trust protector may not delegate any duty or power that the settlor reasonably expected the trust advisor or trust protector to perform jointly with each trustee, trust advisor, and trust protector who also is vested with that duty or power.
(c) The exercise of a power includes the performance of any function involving that power.
(d) Unless a delegation was irrevocable, a trust advisor or trust protector may revoke a delegation previously made.
Source.
2017, 257:31, eff. July 18, 2017.
2023 New Hampshire Revised Statutes › Title LVI - Probate Courts and Decedents' Estates › Chapter 564-B - New Hampshire Trust Code › Section 564-B:12-1210 - Employing Attorneys, Agents, and Other Persons.

564-B:12-1210 Employing Attorneys, Agents, and Other Persons. –
(a) A trust advisor or trust protector shall have the power to employ any attorney or other person, even if the person is affiliated or associated with the trust advisor or trust protector, to advise the trust advisor or trust protector in the performance of the trust advisor's or trust protector's duties.
(b) To the extent consistent with the scope and nature of a trust advisor's or trust protector's powers and duties under the terms of the trust, the trust advisor or trust protector shall have the power to employ any agent or other person, even if the person is affiliated or associated with the trust advisor or trust protector, to assist the trust advisor or trust protector in the performance of the trust advisor's or trust protector's duties.
(c) The reasonable compensation of a person whom a trust advisor or trust protector employs under subsection (a) or (b) is an expense incurred in the administration of the trust.
Source.
2017, 257:31, eff. July 18, 2017.
2023 New Hampshire Revised Statutes › Title LVI - Probate Courts and Decedents' Estates › Chapter 564-C - Uniform Principal and Income Act › Section 564-C:1-101 - Short Title.

564-C:1-101 Short Title. –
This chapter may be cited as the Uniform Principal and Income Act.
Source.
2006, 320:68, eff. Aug. 19, 2006.
2023 New Hampshire Revised Statutes › Title LVI - Probate Courts and Decedents' Estates › Chapter 564-C - Uniform Principal and Income Act › Section 564-C:1-103 - Fiduciary Duties; General Principles.

564-C:1-103 Fiduciary Duties;  General Principles. –
(a) In allocating receipts and disbursements to or between principal and income, and with respect to any matter within the scope of articles 2 and 3, a fiduciary:
(1) shall administer a trust or estate in accordance with the terms of the trust or the will, even if there is a different provision in this chapter;
(2) may administer a trust or estate by the exercise of a discretionary power of administration given to the fiduciary by the terms of the trust or the will, even if the exercise of the power produces a result different from a result required or permitted by this chapter and no inference that the fiduciary has improperly exercised the discretion arises from the fact that the fiduciary has made an allocation contrary to the provisions of this chapter;
(3) shall administer a trust or estate in accordance with this chapter if the terms of the trust or the will do not contain a different provision or do not give the fiduciary a discretionary power of administration; and
(4) shall add a receipt or charge a disbursement to principal to the extent that the terms of the trust and this chapter do not provide a rule for allocating the receipt or disbursement to or between principal and income.
(b) In exercising the power to adjust under RSA 564-C:1-104(a), the power to convert into a unitrust or reconvert or change the unitrust payout percentage pursuant to RSA 564-C:1-106 or a discretionary power of administration regarding a matter within the scope of this chapter, whether granted by the terms of a trust, a will, this chapter or other applicable law, a fiduciary shall administer a trust or estate impartially, based on what is fair and reasonable to all of the beneficiaries, except to the extent that the terms of the trust or the will express an intention that the fiduciary shall or may favor one or more of the beneficiaries. The exercise of discretion by a fiduciary in accordance with this chapter is presumed to be fair and reasonable to all of the beneficiaries.
Source.
2006, 320:68, eff. Aug. 19, 2006. 2008, 374:31, Sept. 9, 2008.
2023 New Hampshire Revised Statutes › Title LVI - Probate Courts and Decedents' Estates › Chapter 564-C - Uniform Principal and Income Act › Section 564-C:2-202 - Distribution to Residuary and Remainder Beneficiaries.

564-C:2-202 Distribution to Residuary and Remainder Beneficiaries. –
(a) Each beneficiary described in RSA 564-C:2-201(4) is entitled to receive a portion of the net income equal to the beneficiary's fractional interest in undistributed principal assets, using values as of the distribution date. If a fiduciary makes more than one distribution of assets to beneficiaries to whom this section applies, each beneficiary, including one who does not receive part of the distribution, is entitled, as of each distribution date, to the net income the fiduciary has received after the date of death or terminating event or earlier distribution date but has not distributed as of the current distribution date.
(b) In determining a beneficiary's share of net income, the following rules apply:
(1) The beneficiary is entitled to receive a portion of the net income equal to the beneficiary's fractional interest in the undistributed principal assets immediately before the distribution date, including assets that later may be sold to meet principal obligations.
(2) The beneficiary's fractional interest in the undistributed principal assets must be calculated without regard to property specifically given to a beneficiary and property required to pay pecuniary amounts not in trust.
(3) The beneficiary's fractional interest in the undistributed principal assets must be calculated on the basis of the aggregate value of those assets as of the distribution date without reducing the value by any unpaid principal obligation.
(4) The distribution date for purposes of this section may be the date as of which the fiduciary calculates the value of the assets if that date is reasonably near the date on which assets are actually distributed.
(c) If a fiduciary does not distribute all of the collected but undistributed net income to each beneficiary as of a distribution date, the fiduciary shall maintain appropriate records showing the interest of each beneficiary in that net income.
(d) A fiduciary may apply the rules in this section, to the extent that the fiduciary considers it appropriate, to net gain or loss realized after the date of death or terminating event or earlier distribution date from the disposition of a principal asset if this section applies to the income from the asset.
Source.
2006, 320:68, eff. Aug. 19, 2006.
2023 New Hampshire Revised Statutes › Title LVI - Probate Courts and Decedents' Estates › Chapter 564-C - Uniform Principal and Income Act › Section 564-C:3-301 - When Right to Income Begins and Ends.

564-C:3-301 When Right to Income Begins and Ends. –
(a) An income beneficiary is entitled to net income from the date on which the income interest begins. An income interest begins on the date specified in the terms of the trust or, if no date is specified, on the date an asset becomes subject to a trust or successive income interest.
(b) An asset becomes subject to a trust:
(1) on the date it is transferred to the trust in the case of an asset that is transferred to a trust during the transferor's life;
(2) on the date of a testator's death in the case of an asset that becomes subject to a trust by reason of a will, even if there is an intervening period of administration of the testator's estate; or
(3) on the date of an individual's death in the case of an asset that is transferred to a fiduciary by a third party because of the individual's death.
(c) An asset becomes subject to a successive income interest on the day after the preceding income interest ends, as determined under subsection (d), even if there is an intervening period of administration to wind up the preceding income interest.
(d) An income interest ends on the day before an income beneficiary dies or another terminating event occurs, or on the last day of a period during which there is no beneficiary to whom a trustee may distribute income.
Source.
2006, 320:68, eff. Aug. 19, 2006.
2023 New Hampshire Revised Statutes › Title LVI - Probate Courts and Decedents' Estates › Chapter 564-C - Uniform Principal and Income Act › Section 564-C:3-302 - Apportionment of Receipts and Disbursements When Decedent Dies or Income Interest Begins.

564-C:3-302 Apportionment of Receipts and Disbursements When Decedent Dies or Income Interest Begins. –
(a) A trustee shall allocate an income receipt or disbursement other than one to which RSA 564-C:2-201(1) applies to principal if its due date occurs before a decedent dies in the case of an estate or before an income interest begins in the case of a trust or successive income interest.
(b) A trustee shall allocate an income receipt or disbursement to income if its due date occurs on or after the date on which a decedent dies or an income interest begins and it is a periodic due date. An income receipt or disbursement must be treated as accruing from day to day if its due date is not periodic or it has no due date. The portion of the receipt or disbursement accruing before the date on which a decedent dies or an income interest begins must be allocated to principal and the balance must be allocated to income.
(c) An item of income or an obligation is due on the date the payer is required to make a payment. If a payment date is not stated, there is no due date for the purposes of this chapter. Distributions to shareholders or other owners from an entity to which RSA 564-C:4-401 applies are deemed to be due on the date fixed by the entity for determining who is entitled to receive the distribution or, if no date is fixed, on the declaration date for the distribution. A due date is periodic for receipts or disbursements that must be paid at regular intervals under a lease or an obligation to pay interest or if an entity customarily makes distributions at regular intervals.
Source.
2006, 320:68, eff. Aug. 19, 2006.
2023 New Hampshire Revised Statutes › Title LVI - Probate Courts and Decedents' Estates › Chapter 564-C - Uniform Principal and Income Act › Section 564-C:3-303 - Apportionment When Income Interest Ends.

564-C:3-303 Apportionment When Income Interest Ends. –
(a) In this section, "undistributed income" means net income received before the date on which an income interest ends. The term does not include an item of income or expense that is due or accrued or net income that has been added or is required to be added to principal under the terms of the trust.
(b) Except as provided in subsection (c), when a mandatory income interest ends, the trustee shall pay to a mandatory income beneficiary who survives that date, or the estate of a deceased mandatory income beneficiary whose death causes the interest to end, the beneficiary's share of the undistributed income that is not disposed of under the terms of the trust.
(c) If immediately before the income interest ends the beneficiary described in subsection (b) has an unqualified power to revoke more than 5 percent of the trust, the undistributed income from the portion of the trust that may be revoked must be added to principal.
(d) When a trustee's obligation to pay a fixed annuity or a fixed fraction of the value of the trust's assets ends, the trustee shall prorate the final payment if and to the extent required by applicable law to accomplish a purpose of the trust or its settlor relating to income, gift, estate, or other tax requirements.
Source.
2006, 320:68, eff. Aug. 19, 2006.
2023 New Hampshire Revised Statutes › Title LVI - Probate Courts and Decedents' Estates › Chapter 564-C - Uniform Principal and Income Act › Section 564-C:4-401 - Character of Receipts.

564-C:4-401 Character of Receipts. –
(a) In this section, "entity" means a corporation, partnership, limited liability company, regulated investment company, real estate investment trust, common trust fund, or any other organization in which a trustee has an interest other than a trust or estate to which RSA 564-C:4-402 applies, a business or activity to which RSA 564-C:4-403 applies, or an asset-backed security to which RSA 564-C:4-415 applies.
(b) Except as otherwise provided in this section, a trustee shall allocate to income money received from an entity.
(c) A trustee shall allocate the following receipts from an entity to principal:
(1) property other than money;
(2) money received in one distribution or a series of related distributions in exchange for part or all of a trust's interest in the entity;
(3) money received in total or partial liquidation of the entity; and
(4) money received from an entity that is a regulated investment company or a real estate investment trust if the money distributed is a capital gain dividend for federal income tax purposes.
(d) For purposes of subsection (c)(3):
(1) money is received in partial liquidation:
(A) to the extent that the entity, at or near the time of a distribution, indicates that it is a distribution in partial liquidation; or
(B) if the total amount of money and property received in a distribution or series of related distributions is greater than 20 percent of the entity's gross assets, as shown by the entity's year end financial statements immediately preceding the initial receipt.
(2) money is not received in partial liquidation, nor may it be taken into account under subsection (d)(1)(B), to the extent that it does not exceed the amount of income tax that a trustee or beneficiary must pay on taxable income of the entity that distributes the money.
(e) A trustee may rely upon a statement made by an entity about the source or character of a distribution if the statement is made by the entity's board of directors or other person or group of persons authorized to exercise powers to pay money or transfer property comparable to those of a corporation's board of directors.
Source.
2006, 320:68, eff. Aug. 19, 2006.
2023 New Hampshire Revised Statutes › Title LVI - Probate Courts and Decedents' Estates › Chapter 564-C - Uniform Principal and Income Act › Section 564-C:4-402 - Distribution from Trust or Estate.

564-C:4-402 Distribution from Trust or Estate. –
A trustee shall allocate to income an amount received as a distribution of income from a trust or an estate in which the trust has an interest other than a purchased interest, and shall allocate to principal an amount received as a distribution of principal from such a trust or estate. If a trustee purchases an interest in a trust that is an investment entity, or a decedent or donor transfers an interest in such a trust to a trustee, RSA 564 C:4-401 or RSA 564-C:4-415 applies to a receipt from the trust.
Source.
2006, 320:68, eff. Aug. 19, 2006.
2023 New Hampshire Revised Statutes › Title LVI - Probate Courts and Decedents' Estates › Chapter 564-C - Uniform Principal and Income Act › Section 564-C:4-403 - Business and Other Activities Conducted by Trustee.

564-C:4-403 Business and Other Activities Conducted by Trustee. –
(a) If a trustee who conducts a business or other activity determines that it is in the best interest of all the beneficiaries to account separately for the business or activity instead of accounting for it as part of the trust's general accounting records, the trustee may maintain separate accounting records for its transactions, whether or not its assets are segregated from other trust assets.
(b) A trustee who accounts separately for a business or other activity may determine the extent to which its net cash receipts must be retained for working capital, the acquisition or replacement of fixed assets, and other reasonably foreseeable needs of the business or activity, and the extent to which the remaining net cash receipts are accounted for as principal or income in the trust's general accounting records. If a trustee sells assets of the business or other activity, other than in the ordinary course of the business or activity, the trustee shall account for the net amount received as principal in the trust's general accounting records to the extent the trustee determines that the amount received is no longer required in the conduct of the business.
(c) Activities for which a trustee may maintain separate accounting records include:
(1) retail, manufacturing, service, and other traditional business activities;
(2) farming;
(3) raising and selling livestock and other animals;
(4) management of rental properties;
(5) extraction of minerals and other natural resources;
(6) timber operations; and
(7) activities to which RSA 564-C:4-414 applies.
Source.
2006, 320:68, eff. Aug. 19, 2006.
2023 New Hampshire Revised Statutes › Title LVI - Probate Courts and Decedents' Estates › Chapter 564-C - Uniform Principal and Income Act › Section 564-C:4-404 - Principal Receipts.

564-C:4-404 Principal Receipts. –
A trustee shall allocate to principal:
(1) To the extent not allocated to income under this chapter, assets received from a transferor during the transferor's lifetime, a decedent's estate, a trust with a terminating income interest, or a payer under a contract naming the trust or its trustee as beneficiary;
(2) Subject to any contrary rules set forth in articles 4 or 5 of this chapter, money or other property received from the sale, exchange, liquidation, or change in form of a principal asset, including realized profit, subject to this article;
(3) Amounts recovered from third parties to reimburse the trust because of disbursements described in RSA 564-C:5-502(a)(7) or for other reasons to the extent not based on the loss of income;
(4) Proceeds of property taken by eminent domain, but a separate award made for the loss of income with respect to an accounting period during which a current income beneficiary had a mandatory income interest is income;
(5) Net income received in an accounting period during which there is no beneficiary to whom a trustee may or must distribute income; and
(6) Other receipts as provided in part 3.
Source.
2006, 320:68, eff. Aug. 19, 2006.
2023 New Hampshire Revised Statutes › Title LVI - Probate Courts and Decedents' Estates › Chapter 564-C - Uniform Principal and Income Act › Section 564-C:4-405 - Rental Property.

564-C:4-405 Rental Property. –
To the extent that a trustee accounts for receipts from rental property pursuant to this section and not as provided in RSA 564-C:4-403, the trustee shall allocate to income an amount received as rent of real or personal property, including an amount received for cancellation or renewal of a lease. An amount received as a refundable deposit, including a security deposit or a deposit that is to be applied as rent for future periods, must be added to principal and held subject to the terms of the lease and is not available for distribution to a beneficiary until the trustee's contractual obligations have been satisfied with respect to that amount.
Source.
2006, 320:68, eff. Aug. 19, 2006.
2023 New Hampshire Revised Statutes › Title LVI - Probate Courts and Decedents' Estates › Chapter 564-C - Uniform Principal and Income Act › Section 564-C:4-406 - Obligation to Pay Money.

564-C:4-406 Obligation to Pay Money. –
(a) An amount received as interest, whether determined at a fixed, variable, or floating rate, on an obligation to pay money to the trustee, including an amount received as consideration for prepaying principal, must be allocated to income without any provision for amortization of premium.
(b) An amount received from the sale, redemption, or other disposition of an obligation to pay money to the trustee more than one year after it is purchased or acquired by the trustee, including an obligation whose purchase price or value when it is acquired is less than its value at maturity, must be allocated to principal. If the obligation matures within one year after it is purchased or acquired by the trustee, an amount received in excess of its purchase price or its value when acquired by the trust must be allocated to income.
(c) This section does not apply to an obligation to which RSA 564-C:4-409, 410, 411, 412, 414, or 415 applies.
Source.
2006, 320:68, eff. Aug. 19, 2006.
2023 New Hampshire Revised Statutes › Title LVI - Probate Courts and Decedents' Estates › Chapter 564-C - Uniform Principal and Income Act › Section 564-C:4-407 - Insurance Policies and Similar Contracts.

564-C:4-407 Insurance Policies and Similar Contracts. –
(a) Except as otherwise provided in subsection (b), a trustee shall allocate to principal the proceeds of a life insurance policy or other contract in which the trust or its trustee is named as beneficiary, including a contract that insures the trust or its trustee against loss for damage to, destruction of, or loss of title to a trust asset. The trustee shall allocate dividends on an insurance policy to income if the premiums on the policy are paid from income, and to principal if the premiums are paid from principal.
(b) A trustee shall allocate to income proceeds of a contract that insures the trustee against loss of occupancy or other use by an income beneficiary, loss of income, or, subject to RSA 564-C:4-403, loss of profits from a business.
(c) This section does not apply to a contract to which RSA 564-C:4-409 applies.
Source.
2006, 320:68, eff. Aug. 19, 2006.
2023 New Hampshire Revised Statutes › Title LVI - Probate Courts and Decedents' Estates › Chapter 564-C - Uniform Principal and Income Act › Section 564-C:4-407A - Charitable Remainder Unitrusts.

564-C:4-407A Charitable Remainder Unitrusts. –
(a) In the case of a charitable remainder unitrust within the meaning of section 664(d)(2) of the Internal Revenue Code, in which the trust instrument contains an income exception described in section 664(d)(3) of the Internal Revenue Code, the trustee shall allocate receipts from each of the following assets in accordance with subsection (b), notwithstanding any other provision of this chapter:
(1) an entity within the meaning of RSA 564-C:4-401(a);
(2) an obligation to pay money to the trustee, including an obligation whose purchase price or value when it is acquired is less than its value at maturity;
(3) a life insurance policy, unless the insured has died;
(4) a private or commercial annuity, unless the payments within the meaning of RSA 564-C:4-409(a), have commenced;
(5) a derivative within the meaning of RSA 564-C:4-414(a), except to the extent that the trustee accounts under RSA 564-C:4-403 for a transaction in that derivative; or
(6) an asset-backed security within the meaning of RSA 564-C:4-415(a).
(b) A trustee shall allocate to income the amount in excess of the asset's purchase price or the asset's value when it was acquired. A trustee shall allocate to principal the balance of the money or other property received.
(c) This section shall apply to any charitable remainder unitrust created before, on, or after the effective date of this section.
Source.
2014, 195:34, eff. July 1, 2014.
2023 New Hampshire Revised Statutes › Title LVI - Probate Courts and Decedents' Estates › Chapter 564-C - Uniform Principal and Income Act › Section 564-C:4-408 - Insubstantial Allocations Not Required.

564-C:4-408 Insubstantial Allocations Not Required. –
(a) If a trustee determines that an allocation between principal and income required by RSA 564-C:4-409, 410, 411, 412, or 415 is insubstantial, the trustee may allocate the entire amount to principal unless one of the circumstances described in RSA 564-C:1-104(c) applies to the allocation. This power may be exercised by a cotrustee in the circumstances described in RSA 564-C:1-104(d) and may be released for the reasons and in the manner described in RSA 564-C:1-104(e).
(b) An allocation is presumed to be insubstantial if:
(1) the amount of the allocation would increase or decrease net income in an accounting period, as determined before the allocation, by less than 10 percent; or
(2) the value of the asset producing the receipt for which the allocation would be made is less than 10 percent of the total value of the trust's assets at the beginning of the accounting period.
(c) Nothing in this section imposes a duty on the trustee to make an allocation under this section, and the trustee is not liable for failing to make an allocation under this section regardless of whether or not the trustee has made allocations under this section in the past.
Source.
2006, 320:68, eff. Aug. 19, 2006.
2023 New Hampshire Revised Statutes › Title LVI - Probate Courts and Decedents' Estates › Chapter 564-C - Uniform Principal and Income Act › Section 564-C:4-409 - Deferred Compensation, Annuities, and Similar Payments.

564-C:4-409 Deferred Compensation, Annuities, and Similar Payments. –
(a) In this section, "payment" means a payment that a trustee may receive over a fixed number of years or during the life of one or more individuals because of services rendered or property transferred to the payer in exchange for future payments. The term includes a payment made in money or property from the payer's general assets or from a separate fund created by the payer, including a private or commercial annuity, an individual retirement account, and a pension, profit-sharing, stock-bonus, or stock- ownership plan.
(b) To the extent that a payment is characterized as interest or a dividend or a payment made in lieu of interest or a dividend, a trustee shall allocate it to income. The trustee shall allocate to principal the balance of the payment and any other payment received in the same accounting period that is not characterized as interest, a dividend, or an equivalent payment.
(c) If no part of a payment is characterized as interest, a dividend, or an equivalent payment, and all or part of the payment is required to be made, a trustee shall allocate to income 10 percent of the part that is required to be made during the accounting period and the balance to principal. If no part of a payment is required to be made or the payment received is the entire amount to which the trustee is entitled, the trustee shall allocate the entire payment to principal. For purposes of this subsection, a payment is not "required to be made" to the extent that it is made because the trustee exercises a right of withdrawal.
(d) If, to obtain an estate tax marital deduction for a trust, a trustee must allocate more of a payment to income than provided for by this section, the trustee shall allocate to income the additional amount necessary to obtain the marital deduction.
(e) This section does not apply to payments to which RSA 564-C:4-410 applies.
Source.
2006, 320:68, eff. Aug. 19, 2006.
2023 New Hampshire Revised Statutes › Title LVI - Probate Courts and Decedents' Estates › Chapter 564-C - Uniform Principal and Income Act › Section 564-C:4-410 - Liquidating Asset.

564-C:4-410 Liquidating Asset. –
(a) In this section, "liquidating asset" means an asset whose value will diminish or terminate because the asset is expected to produce receipts for a period of limited duration. The term includes a leasehold, patent, copyright, royalty right, and right to receive payments under an arrangement that does not provide for the payment of interest on the unpaid balance. The term does not include a payment subject to RSA 564-C:4-409, resources subject to RSA 564-C:4-411, timber subject to RSA 564-C:4-412, an activity subject to RSA 564-C:4-414, an asset subject to RSA 564-C:4-415, or any asset for which the trustee establishes a reserve for depreciation under RSA 564-C:5-503.
(b) A trustee shall allocate to income 10 percent of the receipts from a liquidating asset and the balance to principal.
Source.
2006, 320:68, eff. Aug. 19, 2006.
2023 New Hampshire Revised Statutes › Title LVI - Probate Courts and Decedents' Estates › Chapter 564-C - Uniform Principal and Income Act › Section 564-C:4-411 - Minerals, Water, and Other Natural Resources.

564-C:4-411 Minerals, Water, and Other Natural Resources. –
(a) To the extent that a trustee accounts for receipts from an interest in minerals or other natural resources pursuant to this section, the trustee shall allocate them as follows:
(1) if received as a nominal bonus, nominal delay rental or nominal annual rent on a lease, a receipt must be allocated to income.
(2) if received from a production payment, a receipt must be allocated to income if and to the extent that the agreement creating the production payment provides a factor for interest or its equivalent. The balance must be allocated to principal.
(3) if an amount received as a royalty, shut-in-well payment, take-or-pay payment, bonus, or delay rental is more than nominal, 90 percent must be allocated to principal and the balance to income.
(4) if an amount is received from a working interest or any other interest not provided for in subsection (1), (2), or (3), 90 percent of the net amount received must be allocated to principal and the balance to income.
(b) An amount received on account of an interest in water that is renewable must be allocated to income. If the water is not renewable, 90 percent of the amount must be allocated to principal and the balance to income.
(c) This chapter applies whether or not a decedent or donor was extracting minerals, water, or other natural resources before the interest became subject to the trust.
(d) If a trust owns an interest in minerals, water, or other natural resources on the effective date of this chapter, the trustee may allocate receipts from the interest as provided in this chapter or in the manner used by the trustee before the effective date of this chapter. If the trust acquires an interest in minerals, water, or other natural resources after the effective date of this chapter, the trustee shall allocate receipts from the interest as provided in this chapter.
Source.
2006, 320:68, eff. Aug. 19, 2006.