Estate Planning Law in New Hampshire: Overview
New Hampshire does not impose a state estate tax, inheritance tax, or general income tax (though it taxes interest and dividends). The state is a common law property state with its own probate code. New Hampshire requires two witnesses for wills; holographic wills are not recognized. The state has modern trust laws and allows trust decanting. The small estate threshold is $10,000 for voluntary administration. New Hampshire does not allow transfer-on-death deeds for real property. The surviving spouse has an elective share.
Key Statutes & Deadlines
State Estate Tax
No state estate tax
RSA § 86:1 (repealed)
Small Estate Threshold
$10,000 for voluntary administration
RSA § 553:32
Will Execution
Two witnesses; no holographic wills
RSA § 551:2
Elective Share
One-third of estate
RSA § 560:10
No TOD Deed
Transfer-on-death deeds not available
N/A
Tax-Friendly Environment
New Hampshire has no state estate tax, inheritance tax, or general income tax (it taxes only interest and dividends, and this tax is being phased out). This makes the state attractive for retirees and estate planning. Combined with no sales tax, New Hampshire offers one of the most favorable overall tax environments in the Northeast.
Trust Law
New Hampshire has modern trust laws including trust decanting provisions and directed trust recognition. The state allows trust modification and allows trusts of significant duration. While not as well known as Delaware or South Dakota for trust formation, New Hampshire offers competitive trust provisions for New England residents.
Probate Procedures
New Hampshire probate is handled by Circuit Courts (Probate Division) in each county. The state has its own probate code rather than the UPC. The small estate threshold of $10,000 is quite low, meaning most estates require formal administration. Since New Hampshire does not allow TOD deeds, trusts are the primary probate avoidance tool for real property.
New Hampshire Court System
New Hampshire probate is handled by the Circuit Court (Probate Division) in each of its 10 counties. The court oversees estate administration, will probate, trust disputes, guardianship, and conservatorship. Appeals go to the New Hampshire Supreme Court (no intermediate appellate court).
Damages & Penalties
New Hampshire has no state estate or inheritance tax. Fiduciaries face liability for breach of duty. Courts can remove and surcharge fiduciaries. The state criminalizes will destruction.
Recent Legislative Changes
New Hampshire is phasing out its interest and dividends tax, further improving its tax-friendly status. The state has updated its trust laws with modern decanting and directed trust provisions.
Key Takeaways
- No state estate tax, inheritance tax, or general income tax.
- Interest and dividends tax being phased out.
- Holographic wills not recognized; two witnesses required.
- No transfer-on-death deeds; trusts needed for real property probate avoidance.
- Elective share is one-third of the estate.
- Small estate threshold is only $10,000.
- Modern trust laws with decanting and directed trust provisions.
Frequently Asked Questions
Does New Hampshire have a state estate tax?
No, New Hampshire has no state estate or inheritance tax. It also has no general income tax, making it very tax-friendly.
Are holographic wills valid?
No, New Hampshire requires two witnesses for a valid will.
Does New Hampshire allow transfer-on-death deeds?
No, New Hampshire does not have TOD deed legislation. Revocable living trusts are the primary way to avoid probate on real property.
What is the small estate threshold?
Only $10,000 for voluntary administration, one of the lowest in the nation.
What are the surviving spouse's rights?
The surviving spouse has an elective share of one-third of the estate.
Is the interest and dividends tax being eliminated?
Yes, New Hampshire is phasing out its tax on interest and dividends, making the state even more tax-friendly.
This guide is provided for general informational purposes only and does not constitute legal advice. New Hampshire laws may change, and the information here may not apply to your specific situation. For advice tailored to your circumstances, consult with a qualified New Hampshire attorney.