This bill amends the New Hampshire Trust Code to enhance the governance of trusts by introducing several key changes. Firstly, it prohibits beneficiaries from removing a fiduciary and replacing them with a relative or subordinate, unless specific conditions are met, such as the fiduciary's discretionary power being limited by an ascertainable standard. Additionally, the bill expands the definition of who may be considered a fiduciary, which now includes trust advisors and protectors, and it repeals previous limitations on trustees who are also beneficiaries, thereby allowing them greater flexibility in their roles.

The bill also modifies the language surrounding the discretionary powers of fiduciaries, ensuring that they must act in good faith and in accordance with the trust's terms and the beneficiaries' interests. It clarifies that a beneficiary's interest in distributions made at the fiduciary's discretion is merely an expectancy rather than a property interest. Furthermore, it allows for unequal distributions among beneficiaries if the trust permits it, and it establishes that if all fiduciaries are limited in their powers, a court may appoint a special trustee to exercise those powers. The act will take effect 60 days after its passage.

Statutes affected:
Introduced: 564-B:8-814, 564-B:8-815, 564-B:8-818
Version adopted by both bodies: 564-B:8-814, 564-B:8-815, 564-B:8-818
CHAPTERED FINAL VERSION: 564-B:8-814, 564-B:8-815, 564-B:8-818