Most of what adult children need to know about NH estate and incapacity planning concentrates in a small set of documents and a handful of state-specific rules. The tax-free environment means most NH plans don’t need tax-minimization machinery — the leverage is in probate avoidance and incapacity protection.
The four documents to have in place this year
These apply to NH residents regardless of wealth or family structure. Most cost $400–$1,500 through a NH-licensed attorney; the trust adds $1,500–$4,000.
1. Durable Power of Attorney (RSA 564-E)
A NH Durable Power of Attorney names a person (the agent or attorney-in-fact) to handle your parent’s financial affairs if they become unable to act. New Hampshire adopted the Uniform Power of Attorney Act in 2017 (RSA 564-E), which provides a standardized framework. Like most UPOAA states, NH treats certain “hot powers” (gifting, creating or amending trusts, changing beneficiary designations) as requiring specific authorization in the document.1
The DPOA should be durable (survives incapacity), in writing, and notarized. NH banks and brokerages generally accept NH-conforming POAs; older documents or out-of-state POAs may face additional scrutiny. RSA 564-E:120 includes a third-party-acceptance provision, but practical compliance is uneven. A NH-specific, bank-friendly POA is worth the extra cost.
2. Health Care POA + Living Will (RSA 137-J)
NH combines the Health Care POA and Living Will into a single Advance Directive form under RSA 137-J. The Advance Directive names an agent to make medical decisions when the principal cannot communicate their wishes, and expresses the principal’s preferences about end-of-life care — whether to withhold or withdraw life-prolonging procedures in defined terminal, end-stage, or persistent-vegetative-state conditions.2
The NH Advance Directive must be signed by the principal in the presence of two adult witnesses (with certain restrictions on who can witness) or notarized. The DHHS publishes a free statutory form.
3. POLST (Provider Orders for Life-Sustaining Treatment)
For NH residents with serious illness, the POLST form translates the Advance Directive’s general preferences into specific medical orders that EMS and hospital staff can act on. NH POLST is voluntary but increasingly used in chronic and end-of-life care settings. The form is signed by both the patient (or their agent) and a physician or APRN.
4. Revocable Living Trust (RSA 564-B)
A revocable trust is the workhorse of NH estate planning because NH probate — while not as expensive as Florida’s — is still procedural and can take 6–12 months for formal administration through the NH Circuit Court Probate Division. Your parent transfers assets into the trust during life, retains full control as trustee, and names a successor trustee to manage and distribute assets at death without probate. NH’s Trust Code (RSA 564-B) is based on the Uniform Trust Code, which gives the document broad national portability.3
NH’s tax structure: what makes the state distinctive
New Hampshire has one of the most retiree-friendly tax structures in the country:
- No state tax on wages. NH has never had a broad-based personal income tax on earned wages.
- No state tax on interest, dividends, or capital gains.The old Interest & Dividends (I&D) tax was phased out and fully repealed effective January 1, 2025.4
- No state sales tax. NH is one of five states with no general sales tax.
- No state estate or inheritance tax. The old Legacy and Succession Tax was repealed in 2003.
- Relatively high property taxes, but significant elderly-exemption programs available.
Elderly property tax exemptions (RSA 72:39-a, RSA 72:39-b)
NH’s combination of no income tax with high property tax is offset for seniors by the elderly exemption and elderly credit programs:
- Elderly exemption (RSA 72:39-a). A locally-adopted exemption from assessed value of the principal residence. Amounts are set by each town/city and vary substantially. Income and asset limits apply.
- Elderly tax credit (RSA 72:39-b). A dollar-for-dollar reduction of property-tax owed, also locally adopted.
Apply through your local town or city assessor’s office using Form PA-29. Application deadlines are typically April 15 of the tax year. The programs are materially under-claimed because municipalities don’t actively promote them. If your parent is 65+ and owns their home in NH, confirm they have the elderly exemption on file.
Probate in NH
NH probate is administered by the Circuit Court Probate Division. Two main paths:
- Small-estate procedure (RSA 553:32). Available when the estate consists of personal property valued at $25,000 or less and no real estate. Faster and less expensive than formal probate.
- Formal administration.Required for larger estates. Typically 6–12 months and involves notice publication, creditor claims, inventory, and court approval of distribution.
The combination of relatively modest small-estate thresholds and the procedural cost of formal administration is why a revocable living trust is the standard probate-avoidance tool for most middle-class NH families. A properly funded trust avoids probate entirely.
The federal estate-tax overlay
NH’s lack of state-level transfer taxes leaves only the federal estate tax to consider. The federal exemption is ~$13.99M per individual in 2025; scheduled to sunset to roughly half that on January 1, 2026 unless Congress extends the higher exemption.5For NH residents below the federal threshold — the vast majority — estate planning is about probate avoidance, incapacity planning, and family coordination.
What to do this quarter
- Locate (or create) your parent’s four documents: DPOA, Advance Directive, POLST (if appropriate), and Revocable Living Trust.
- If documents predate RSA 564-E (2017), have the financial POA reviewed and likely updated.
- Confirm your parent has the elderly property-tax exemption on file with the local assessor — this is the most commonly missed item.
- Get an estate-plan review if the will was drafted in another state.
- For companion content on Medicaid planning and long-term- care funding, see the NH Medicaid guide.