Estate Planning in New Hampshire: What You Need to Know
Don't Let NH Law Decide: Take Control of Your Legacy
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New Hampshire, known for its mountainous beauty and independent spirit, also offers unique considerations for estate planning. While the core goals remain the same – ensuring your wishes are met and minimising burdens on loved ones – the legal landscape has its quirks. Here's a breakdown of key state-specific aspects to consider:
Intestacy and Elective Share:
Intestacy: If you die without a will, New Hampshire law dictates how your assets are distributed. The surviving spouse receives the first $20,000 of the estate, all household furniture and furnishings, and half of the remaining estate. Descendants inherit the rest, with specific rules for children, grandchildren, and more distant relatives.
Elective Share: New Hampshire offers a limited elective share. This allows a surviving spouse to choose a portion of the deceased spouse's estate, even if the will dictates otherwise. However, unlike some states, the elective share is only the first $60,000 of the estate, plus half the value of any property owned jointly by the spouses.
Probate:
Threshold: New Hampshire boasts a relatively high threshold for probate, meaning estates valued under $60,000 generally avoid probate court. This simplifies the process and saves on costs for smaller estates.
Small Estate Affidavit: For estates below the threshold, a surviving spouse or beneficiary can utilise a "small estate affidavit" to collect assets titled solely in the decedent's name. This affidavit has specific requirements and limitations.
Tax Considerations:
Estate Tax: New Hampshire is one of the few states with no estate tax. This removes a layer of complexity for many estates. However, federal estate tax may still apply to very large estates.
Inheritance Tax: New Hampshire also has no inheritance tax, meaning beneficiaries generally inherit without owing taxes on their received assets.
Planning Tools:
Living Will and Power of Attorney: These documents are crucial for outlining your wishes for medical care and financial decisions if you become incapacitated. New Hampshire has specific forms for these documents, and consulting with an attorney ensures they comply with state law.
Revocable Living Trust: A revocable living trust can help avoid probate for assets placed within the trust. This can expedite the distribution of assets and offer some privacy benefits. However, it's important to understand the ongoing management and tax implications of a trust.
Additional Nuances:
Homestead Exemption: New Hampshire offers a homestead exemption that protects a portion of the value of your primary residence from creditors. This can be especially helpful for ensuring your spouse or children can maintain the family home.
Non-Domicile Considerations: If you own property or spend time in another state, it's crucial to understand how those states' laws might interact with your New Hampshire estate plan. Consulting with an attorney familiar with both states' laws is recommended.
Seeking Professional Guidance:
While this provides a glimpse into New Hampshire's estate planning landscape, it's not a substitute for personalised legal advice. An estate planning attorney can help you navigate the complexities of state law, draft documents tailored to your unique situation, and address your specific goals. With careful planning and professional guidance, you can ensure your legacy is handled according to your wishes and minimise the burden on your loved ones during a difficult time.
Information published to or by The Industry Leader will never constitute legal, financial or business advice of any kind, nor should it ever be misconstrued or relied on as such. For individualized support for yourself or your business, we strongly encourage you to seek appropriate counsel.
