1. No State Income Tax One of the biggest advantages of a New Hampshire trust is that the state does not tax trust income or capital gains. This means that if your trust holds investments that generate significant returns, avoiding unnecessary state income tax can lead to significant long-term savings. 2. No State Interest and Dividend Tax As of January 1st, 2025, New Hampshire no longer imposes a state interest and dividend tax. New Hampshire irrevocable trusts do not even need to file a state return. 3. Strong Asset Protection New Hampshire offers some of the strongest asset protection laws in the country. Certain types of trusts, such as Domestic Asset Protection Trusts (DAPT), allow individuals to shield assets from creditors, lawsuits, and other financial risks while still benefiting from those assets. This can be especially valuable for business owners, professionals, and high-net-worth individuals concerned about liability. 4. Dynasty Trusts: Protecting Wealth for Generations New Hampshire allows dynasty trusts, which can last indefinitely. This is a powerful tool for families who want to pass down wealth through multiple generations in a tax-efficient and creditor-protected vehicle. 5. Flexibility Laws change, family circumstances evolve, and sometimes, older trust structures may no longer work. In many states, making changes to an irrevocable trust can be complicated, if not impossible. New Hampshire has one of the most flexible legal frameworks for modifying or updating trust terms without excessive red tape. This means your trust can adapt to changing needs as time goes on. New Hampshire also allows for divided and directed trusts. These approaches allow trust management duties to be allocated among multiple individuals or entities, instead of all responsibility on one individual or corporate trustee. 6. Quiet Trusts: Keeping Things Private New Hampshire allows quiet trusts, whereby you can create a trust without notifying the beneficiaries immediately. This can be reassuring for individuals who want to keep their estate plans private or to postpone informing beneficiaries until they reach a certain level of maturity and financial responsibility.