New Hampshire offers trust companies a compelling business climate with flexibility in local presence and reasonable capital requirements. New Hampshire can provide an excellent solution for those looking to provide trust services and may be particularly interesting for those who are seeking to provide a custody solution for clients.
How long does it take to secure a public trust company charter?
Assuming the application meets the New Hampshire Banking Department’s standards, a trust company charter is typically received in 6 months from the date the application is submitted to the New Hampshire Banking Department. For a complete outline of the application process, please contact AFS.
What are the capital requirements for a trust company in New Hampshire?
New Hampshire statutorily requires $500,000. N.H. Rev. Stat. § 383-C:5-502. However, the New Hampshire Banking Commissioner may require a trust company to maintain required capital in excess of the minimum required capital. In practice, New Hampshire will require a minimum capital requirement of at least $1,250,000 ($1,000,000 capital plus $250,000 pledge). N.H. Rev. Stat. § 383-C:5-503. New Hampshire will assess the assets under administration/custody and assets under management in establishing minimum capital requirements.
Is a physical presence needed in New Hampshire?
New Hampshire does not require an office located in New Hampshire. A trust company may operate out of one or more trust offices and other offices located within the state or in any other state or jurisdiction consistent with the trust company’s business plan. NH. Rev. Stat. § 383-C:7-701. However, potential applicants should be mindful of state reciprocity requirements and should consider the requirements to establish an office in their home state. Please contact AFS for additional information on the requirements.
Do I need an employee in New Hampshire?
There is no requirement to have a trust company employee in New Hampshire. Trust companies with trust situs considerations should consider performing trust administration in New Hampshire to avoid potential jurisdictional challenges to New Hampshire state situs. Please contact AFS for a complete discussion and analysis.
How many board members do I need?
New Hampshire trust companies must have at least five board members. A board member need not be a resident of New Hampshire or a citizen of the United States, unless otherwise required by the commissioner in consideration of the trust company’s safety and soundness. N.H. Rev. Stat. § 383-C-6:601. AFS can provide an experienced board member for your trust company.
Do I need quarterly board meetings?
A trust company’s board of directors shall meet on a regular basis no less than once each calendar quarter or with greater frequency as the board determines is necessary or as the commissioner requires.
How often are trust companies examined?
New Hampshire examines its trust companies once every 18 months. N.H. Rev. Stat. § 383-C:14-1401. New Hampshire chartered trust companies may apply for an exemption from one regularly scheduled examination if the trust company has received positive exam results.
Does New Hampshire provide for family trust companies?
Yes. Please see Family Trust Company Act (Chapter 383-D).
https://www.gencourt.state.nh.us/rsa/html/NHTOC/NHTOC-XXXV-383-D.htm