Protecting Your Assets in New Hampshire: Essential Estate Planning Steps

In New Hampshire, the essential estate planning documents include: 1) A Last Will and Testament to direct how your assets should be distributed; 2) A Durable Power of Attorney to appoint someone to handle your financial affairs if you become incapacitated; 3) A Healthcare Power of Attorney (or Healthcare Proxy) to designate someone to make medical decisions for you; 4) A Living Will/Advanced Directive to specify your end-of-life care preferences; and 5) Potentially a Trust, depending on your specific circumstances and asset protection goals.

If you die without a will in New Hampshire (known as dying 'intestate'), your assets will be distributed according to the state's intestacy laws. Generally, your assets would go to your closest relatives in a specific order: first to your spouse and children, then to parents, siblings, and more distant relatives. The exact distribution depends on which relatives survive you. This process may not align with your wishes and can be more time-consuming and expensive than if you had a will in place.

To protect minor children in New Hampshire, you should: 1) Name a guardian in your will who would raise your children if both parents die; 2) Consider establishing a trust to manage assets for your children until they reach an age you specify; 3) Designate a trustee to manage those assets; 4) Consider life insurance to provide financial support; and 5) Create a detailed letter of instruction for the guardian regarding your children's care preferences, education, and other important matters.

A revocable living trust is a legal arrangement where you transfer assets into a trust during your lifetime while maintaining control as the trustee. In New Hampshire, this can be beneficial because: 1) Assets in the trust avoid probate, saving time and money; 2) It provides privacy since, unlike wills, trusts aren't public record; 3) It allows for management of your assets if you become incapacitated; and 4) It can provide ongoing management for beneficiaries who may not be financially responsible. Whether you need one depends on your specific circumstances, including the value of your estate, privacy concerns, and family situation.

New Hampshire's probate process involves: 1) Filing the will and petition with the probate court in the county where you lived; 2) The court appointing an executor (named in your will) or administrator (if no will exists); 3) Notifying creditors and heirs; 4) Taking inventory of assets; 5) Paying debts and taxes; 6) Distributing remaining assets to beneficiaries; and 7) Closing the estate. The process typically takes 6-12 months but can be longer for complex estates. New Hampshire does offer simplified procedures for smaller estates valued under certain thresholds.

New Hampshire offers several asset protection strategies: 1) New Hampshire is known for its favorable trust laws, including asset protection trusts (DAPTs) that can shield assets from future creditors; 2) The state provides strong homestead protection of up to $120,000 of equity in your primary residence; 3) Certain retirement accounts like 401(k)s and IRAs have protection under state law; 4) Life insurance policies and annuities have specific protections; and 5) New Hampshire allows for the creation of family limited liability companies (FLLCs) that can provide asset protection while maintaining control of family businesses or investments.

To protect digital assets in New Hampshire: 1) Create an inventory of all digital assets (online accounts, cryptocurrencies, digital files, etc.); 2) Include specific provisions in your will or trust authorizing your executor/trustee to access digital assets; 3) Consider using a password manager and sharing access information with a trusted person; 4) Use New Hampshire's adoption of the Revised Uniform Fiduciary Access to Digital Assets Act (RUFADAA) to your advantage by completing online tools provided by digital platforms to designate who can access your accounts; and 5) Create a separate digital asset memorandum with detailed instructions for handling specific digital assets.

New Hampshire has favorable tax implications for estate planning: 1) The state has no income tax; 2) There is no state estate tax or inheritance tax; 3) Residents are still subject to federal estate tax, but only estates exceeding $12.92 million per individual (as of 2023) are taxable; 4) Married couples can use portability to potentially shield up to $25.84 million; 5) Annual gift tax exclusions ($17,000 per recipient in 2023) can be used to reduce estate size; and 6) Certain trusts can be used for tax planning purposes. However, tax laws change frequently, so consulting with a tax professional is advisable.

To ensure your healthcare wishes are followed in New Hampshire if you become incapacitated: 1) Create an Advance Directive (Living Will) that specifies your preferences for medical treatments; 2) Establish a Durable Power of Attorney for Healthcare (Healthcare Proxy) naming someone to make medical decisions for you; 3) Consider completing a POLST (Provider Orders for Life-Sustaining Treatment) form if you have a serious illness; 4) Register your advance directives with the New Hampshire Advance Directive Registry; 5) Discuss your wishes with your healthcare proxy and family members; and 6) Keep copies of these documents accessible and provide copies to your healthcare providers.