HB 88 establishes a new legal framework in New Hampshire for “community property trusts,” effective January 1, 2026. The bill adds a new article to the Uniform Trust Code allowing married couples to transfer property into a trust that is expressly designated as a New Hampshire community property trust, signed by both spouses, and administered by at least one qualified trustee. The required trust language warns spouses that the arrangement can significantly affect their rights during marriage and upon divorce.
Under the bill, spouses may use the trust to transmute property into community property during marriage, regardless of where the spouses live or where the property is located. The bill specifies how the trust may address management and control, choice of law, amendment and revocation, creditor claims, and distribution of assets at death or dissolution. It also provides that, unless the trust says otherwise, the trust terminates on divorce and the assets are divided equally between the spouses, while at death one-half of the trust is treated as the surviving spouse’s share and one-half as the decedent’s share.
Impact
The bill would amend RSA 564-B by creating a new Article 13 governing community property trusts and would also amend RSA 78-B:2 to exempt transfers to such trusts from the real estate transfer tax. As a result, it would change New Hampshire trust and marital property law by allowing married couples to opt into a community-property-style regime through a trust instrument, even if neither spouse is domiciled in the state. The fiscal note anticipates no direct expenditures but projects an indeterminable decrease in real estate transfer tax revenue to the General Fund and Education Trust Fund because the number and value of qualifying transfers cannot be predicted.
Sentiment
The available voting history suggests the bill had meaningful support but also substantial opposition. On March 20, 2025, the House vote on OTPA was 211 yeas to 155 nays, indicating the measure advanced with a clear majority but not broad consensus. No committee transcript is available in the provided materials, so the discussion record is limited to the vote and the bill text itself.
Contention
The main points of contention are likely the policy choice to create a community property trust regime in a common-law property state and the associated tax exemption. Supporters appear to favor giving married couples a flexible estate-planning and asset-management tool, including potential benefits for divorce, death, and tax treatment. Opponents may be concerned about the bill’s effect on marital property rights, creditor access, and the loss of real estate transfer tax revenue, especially because the fiscal impact is uncertain and could reduce receipts to state trust funds.