What is the role of a trust protector in New Hampshire?

A trust protector in New Hampshire is a non-trustee person given specific powers or duties under the trust, an agreement of the qualified beneficiaries, or a court order to oversee or adjust aspects of the trust administration. Under New Hampshire’s Trust Code, a trust protector may have powers such as modifying the trust for tax or law changes, changing the governing law or principal place of administration, removing and replacing fiduciaries, approving reports, and directing certain investment decisions.[1]

New Hampshire Law

New Hampshire defines a “trust protector or trust advisor” as any person, other than a trustee, who has a power or duty with respect to a trust under the trust terms, beneficiary agreement, or court order.[1] The statute lists examples of permissible powers, including:

• modifying or amending the trust to address tax law changes or favorable tax treatment;
• updating the trust to account for changes in perpetuities or restraint-on-alienation rules;
• appointing successor trust protectors or advisors;
• reviewing and approving trustee reports or accountings;
• changing the trust’s governing law or principal place of administration;
• removing and replacing trustees, cotrustees, successors, advisors, or protectors;
• consenting to trustee distribution decisions; and
• directing the acquisition, disposition, or retention of trust investments.[1]

The key point is that the trust protector’s authority comes from the trust instrument or other authorized source, and when exercised according to those terms, the protector’s action is binding on all other persons.[1]

Practical Role

In practice, a trust protector serves as a flexible oversight mechanism. The office is often used to:

1. Preserve settlor intent when circumstances change after the trust is created.
2. Adapt the trust to tax, legal, or administrative developments.
3. Monitor fiduciaries by providing a removal or replacement mechanism.
4. Add an independent check on trustee discretion in sensitive areas.

Important Limitation

The protector is not the trustee. The statute makes clear that the role is a separate, non-trustee position with whatever authority the trust grants. A trust protector has only the powers provided by the trust terms, beneficiary agreement, or court order.[1]