New Hampshire Revised Statutes 564-F:14-1404 – Enforcement of No-Contest Provision
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(a) For the purposes of this section, a “no-contest provision” means a provision of the governing documents that, if given effect, would reduce or eliminate a beneficiary‘s interest because the beneficiary directly or indirectly initiates or otherwise pursues:
(1) Any judicial proceeding against the foundation or any of the foundation officials, including any judicial proceeding:
(A) Contesting the validity of the foundation’s formation;
(B) Contesting the validity of a contribution by a founder to the foundation;
(C) Contesting the validity of the foundation’s governing documents;
(D) Seeking to set aside any provision of the governing documents;
(E) Seeking to void any action by the foundation officials; or
(F) Seeking to dissolve the foundation; or
(2) Any act that frustrates or defeats the founder’s intent as expressed in the terms of the governing documents.
(b) Subject to subsections (c) and (d), a no-contest provision shall be enforceable in accordance with its express terms regardless of whether:
(1) The beneficiary acted in good faith or with probable cause; or
(2) The enforcement of the no-contest provision would result in a partial or complete forfeiture of the beneficiary’s interest.
(c) A no-contest provision shall be unenforceable to the extent that:
(1) The court dissolves the foundation under N.H. Rev. Stat. § 564-F:20-2013(a); or
(2) A judicial proceeding only involved a claim against a foundation official for a breach of duty, and the foundation official committed a breach of duty.
(d) A no-contest provision shall be unenforceable to the extent that a beneficiary initiates, maintains, or cooperates in:
(1) Any judicial proceeding initiated by a foundation official;
(2) Any nonjudicial settlement agreement or other agreement among the beneficiaries and any other interested persons in settlement of a dispute or resolution of any other matter relating to the foundation;
(3) Any judicial proceeding for the interpretation or construction of a provision of the governing instrument, including the interpretation or construction of the no-contest provision with respect to any proposed or pending petition or motion; or
(4) To the extent that the foundation is a charitable trust, any judicial proceeding brought by the director of charitable trusts for the interpretation or construction of the foundation’s governing documents.
(1) Any judicial proceeding against the foundation or any of the foundation officials, including any judicial proceeding:
Terms Used In New Hampshire Revised Statutes 564-F:14-1404
- Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. Source: OCC
- petition: when used in connection with the equity jurisdiction of the superior court, and referring to a document filed with the court, shall mean complaint, and "petitioner" shall mean plaintiff. See New Hampshire Revised Statutes 21:51
- Probable cause: A reasonable ground for belief that the offender violated a specific law.
- Settlement: Parties to a lawsuit resolve their difference without having a trial. Settlements often involve the payment of compensation by one party in satisfaction of the other party's claims.
(A) Contesting the validity of the foundation’s formation;
(B) Contesting the validity of a contribution by a founder to the foundation;
(C) Contesting the validity of the foundation’s governing documents;
(D) Seeking to set aside any provision of the governing documents;
(E) Seeking to void any action by the foundation officials; or
(F) Seeking to dissolve the foundation; or
(2) Any act that frustrates or defeats the founder’s intent as expressed in the terms of the governing documents.
(b) Subject to subsections (c) and (d), a no-contest provision shall be enforceable in accordance with its express terms regardless of whether:
(1) The beneficiary acted in good faith or with probable cause; or
(2) The enforcement of the no-contest provision would result in a partial or complete forfeiture of the beneficiary’s interest.
(c) A no-contest provision shall be unenforceable to the extent that:
(1) The court dissolves the foundation under N.H. Rev. Stat. § 564-F:20-2013(a); or
(2) A judicial proceeding only involved a claim against a foundation official for a breach of duty, and the foundation official committed a breach of duty.
(d) A no-contest provision shall be unenforceable to the extent that a beneficiary initiates, maintains, or cooperates in:
(1) Any judicial proceeding initiated by a foundation official;
(2) Any nonjudicial settlement agreement or other agreement among the beneficiaries and any other interested persons in settlement of a dispute or resolution of any other matter relating to the foundation;
(3) Any judicial proceeding for the interpretation or construction of a provision of the governing instrument, including the interpretation or construction of the no-contest provision with respect to any proposed or pending petition or motion; or
(4) To the extent that the foundation is a charitable trust, any judicial proceeding brought by the director of charitable trusts for the interpretation or construction of the foundation’s governing documents.