§ 547:3-e — Federal Taxation

Whenever it shall be made to appear to the court that the intention of the testator or settlor of a charitable trust will be frustrated in whole or in part by reason of a tax imposed under the United States Internal Revenue Code on the income or principal of the trust, or by reason of administrative burden or disproportionate cost of administration, then the court, in order to prevent the diversion of funds from the charitable purpose by federal taxation, may enter a decree:
I. Modifying or enlarging the powers granted the trustee, or declaring that a trustee does not have certain powers under New Hampshire law to the extent necessary in order to bring the terms of the governing instrument into compliance with the tax exemption requirements of federal law.
II. Authorizing the trustee to make charitable distributions from principal.
III. Terminating the trust and directing the distribution of the trust assets to another charitable trust or to a charitable corporation, to be held and administered in accordance with the terms of the governing instrument as said terms may be modified by the application of cy pres under RSA 547:3-d and this section.
IV. Removing the trustee or trustees, or directing the appointment of new or additional trustees.
V. Reducing or limiting the charitable organizations or classes of charitable organizations or charitable objects which may be benefited under the trust instrument.

Legislative History

1992, 284:50, eff. Jan. 1, 1993.