Cambridge Bancorp (OTCBB: CATC) and its subsidiary, Cambridge Trust Company, announced the formation of Cambridge Trust Company of New Hampshire, Inc., a non-depository trust company chartered by the State of New Hampshire. This new subsidiary was established to attract clients from other states who may be drawn to New Hampshire’s robust trust laws and favorable tax climate.
“We’ve had investment management and trust administration clients in New Hampshire for decades and have served them through our New Hampshire offices since 1996,” said Michael Duca, executive vice president of Cambridge Trust Company’s Wealth Management division. “This new charter simply solidifies our status as a preeminent corporate fiduciary in New Hampshire.”
Todd D. Mayo, president of Cambridge Trust Company of New Hampshire, helped design the most recent innovations in New Hampshire trust law. “Our trust laws give great flexibility to the creator of a trust to suit his or her particular goals and wishes. Those laws also make trust administration more efficient,” he said.
The advantages of administering a trust in New Hampshire include:
- Directed Trusts. New Hampshire law allows for investment and administrative responsibilities to be divided among trustees and third parties. For example, in a directed trust, an investment manager may have the exclusive duty to invest the trust’s assets, and the trustee is only responsible for the other aspects of administering the trust.
- Dynasty Trusts. New Hampshire law allows for the creation of perpetual trusts.
- Wealth Preservation Trusts. New Hampshire law allows for the creation of wealth preservation trusts (also called asset protection trusts), which provides significant protections for trust assets against a settlor’s or beneficiary’s creditors.
- Trust Protectors and Trust Advisors. New Hampshire law recognizes trust protectors and trust advisors, who can oversee or advise the trustees or investment managers.
- Tax Advantages. New Hampshire does not impose any capital gains or other income tax on trusts in which the beneficiaries are not New Hampshire residents.