This bill amends the New Hampshire Trust Code to enhance the roles and responsibilities of fiduciaries, specifically trustees, within trusts. It introduces new legal language that expands the definition of a trustee to include trust advisors and trust protectors, collectively referred to as "fiduciaries." The bill stipulates that a beneficiary of a trust cannot remove a fiduciary and replace them with a relative or subordinate unless certain conditions are met, such as the fiduciary's discretionary power being limited by an ascertainable standard and not being exercised to satisfy the beneficiary's legal obligations. Additionally, it clarifies that a fiduciary must exercise their discretionary powers in good faith and in accordance with the trust's terms and the beneficiaries' interests.

Furthermore, the bill repeals existing limitations on certain trustees who are also beneficiaries, thereby allowing them greater flexibility in managing trust distributions. The amendments also specify that if a fiduciary's discretionary power is limited or prohibited, it may be exercised by a majority of the remaining fiduciaries, and if all are limited, a special trustee may be appointed by the court. The effective date of the act is set for 60 days after its passage.

Statutes affected:
Introduced: 564-B:8-814, 564-B:8-815, 564-B:8-818