BANKS AND BANKING; LOAN ASSOCIATIONS; CREDIT UNIONS
FAMILY TRUST COMPANY ACT
(a) Except as provided in subsection (b), each term defined under RSA 383-A and RSA 383-C shall have the same meaning for purposes of this chapter.
(b) For purposes of this chapter, the following definitions shall apply:
(1) "Affiliate" means an entity that controls, is controlled by, or is under common control with another entity.
(2) "Designated relative" means the individual who is designated as the designated relative in the application under RSA 383-D:5-502 or the application for change of designated relative under RSA 383-D:10-1002.
(3) "Eligible trust" means:
(A) A trust of which each settlor is a family member;
(B) A trust of which a settlor is a person other than a family member if noncharitable beneficiaries who are family members represent a majority of interest in the trust;
(C) A trust of which a settlor is a person other than a family member if a majority of the trust's noncharitable qualified beneficiaries are family members;
(D) A trust in which one or more eligible trusts or other family clients are the only persons who currently are distributees or permissible distributees of trust income or principal; or
(E) A trust of which the settlor is one or more of (i) a key employee, (ii) a former key employee, or (iii) a spouse of a key employee or former key employee.
(4) "Family charitable organization" means a nonprofit corporation, charitable trust, or other nonprofit or charitable entity if (i) it was created by a family client or (ii) one or more family clients contributed all or substantially all of the money or other property that the entity has received as contributions. For purposes of this subsection, a nonprofit corporation includes any voluntary corporation incorporated under RSA 292. For purposes of this subsection, a charitable entity includes an entity organized for any charitable, educational, or religious purpose or any exempt purpose under Section 501(c)(3) of the Internal Revenue Code of 1986.
(5) "Family client" means any of the following persons:
(A) A family member;
(B) A former family member;
(C) A key employee;
(D) A former key employee;
(E) An estate of any incompetent or deceased family member, former family member, key employee, or former key employee;
(F) An eligible trust;
(G) A family charitable organization;
(H) A family entity;
(I) A person designated as a family client under RSA 383-D:4-401(a); or
(J) A person who qualifies as a family client under RSA 383-D:4-401(b).
(6) "Family entity" means an entity controlled by one or more family clients other than key employees and former key employees.
(7) "Family member" is defined in RSA 383-D:4-402.
(8) "Former family member" means (i) a spouse or stepchild who was a family member but ceased to qualify as a family member as the result of a divorce, death, or any other reason or (ii) an individual who was a family member but ceased to qualify as a family member as the result of his or her adoption by an individual who is not a family member.
(9) "Former key employee" means any of the following individuals:
(A) An individual who, under subsection (b)(10)(A) or (b)(10)(B), was a key employee but ceased to qualify as a key employee as the result of a change of duties, termination of employment, or any other reason; or
(B) The spouse of an individual described in subsection (b)(9)(A).
(10) "Key employee" means any of the following individuals:
(A) An individual who is a director or executive officer, or employee of a family trust company or its affiliate and, in connection with his or her regular functions or duties, participates in trust services or the entity's management;
(B) An individual who is a director, officer, or employee of an eligible trust, a family entity, or family charitable organization and, in connection with his or her regular functions or duties, participates in the entity's management;
(C) An individual designated as a key employee under RSA 383-D:4-403(b); or
(D) The spouse of an individual described in subsection (b)(10)(A), (b)(10)(B), or (b)(10)(C).
(11) "Qualified beneficiary" means qualified beneficiary as defined in RSA 564-B:1-103(12).
(12) "Required capital" means the amount of capital that a family trust company is required to maintain under RSA 383-D:6-602.
(13) "Settlor" means settlor as defined in RSA 564-B:1-103(15).
(14) "Terms of a trust" means terms of a trust as defined in RSA 564-B:1-103(19).
(15) "Transact business with the general public" means engaging in any solicitation, agreement, or transaction to exercise trust powers or otherwise provide trust, investment, or other services (whether or not for a fee) to any person other than a family client.
(c) For purposes of RSA 383, RSA 383-A, RSA 383-C, and this chapter, "Organizations Act" means:
(1) In the case of a family trust company organized as a corporation, the Corporation Act;
(2) In the case of a family trust company organized as a limited liability company, the LLC Act; or
(3) In the case of a family trust company organized as a foundation, RSA 564-F.
Source. 2015, 272:16. 2016, 230:13, eff. Aug. 8, 2016. 2017, 257:38, eff. Oct. 1, 2017.