NEW HAMPSHIRE DEPARTMENT OF REVENUE ADMINISTRATION
45 CHENELL DRIVE
PO BOX 637
CONCORD NH  03302-0637

                                                  This booklet contains the Estate Tax Forms and instructions
          NEW HAMPSHIRE
                                                  necessary for filing the NH Estate Tax Return and estimated payments.

                   Estate                         DUE DATE:  The return is due no later than 9 months
                                                  from the date of death.

               Tax Booklet                        EXTENSIONS:  An extension to file the NH-706 Estate Tax Return
                                                  may be granted by the Department of Revenue Administration if a
                                                  copy of the approved Federal Extension is attached to the tax return
                                                  when filed.  Please note, however, that an extension of time to file the
                                                  return does not extend the time to pay the tax.

                                                  NEED HELP OR FORMS:  Copies of forms, laws and administrative
          This booklet contains:                  rules may be obtained from our website at http://www.state.nh.us/
                                                  revenue, or by calling our forms line at (603) 271-2192 or by contacting
          General Instructions                    the Audit Division taxpayer assistance between 8:00 am and 4:30
                                                  pm at (603) 271-2580.

          FORM NH-706                             Individuals who need auxiliary aids for effective eommunications in
                                                  programs and services of the New hampshire Department of Revenue
          FORM NH-706-ES                          Administration are invited to make their needs and preferences known
                                                  to the Department.  Individuals with hearing or speech impairments
                                                  may call TDD Access:  Relay NH 1-800-735-2964.

FORM              NEW HAMPSHIRE DEPARTMENT OF REVENUE ADMINISTRATION
L&S               LEGACY, SUCCESSION AND ESTATES
Glossary                                            GLOSSARY OF TERMS
ACCOUNT           The accounting, which includes all the assets received and expenses paid by the executor or administrator, to be
                  filed with the Probate Court.
ADMINISTRATOR     A person appointed by the court to manage the assets and liabilities of the decedent.
ALTERNATE VALUE   The value of an asset as determined 6 months after the date of death.
BEQUEATH          To give real and personal property by Will to another.
BEQUEST           The act of giving property by Will.
DATE OF DEATH     The date of the decedent's death.
DECEDENT          The person who is no longer living.
DISCLAIMER        The rejection, refusal, or renunciation of interest, right, or property which passed at the date of death of a decedent.
ESTATE            Probate and non-probate assets.
EXECUTOR          A person appointed by the decedent to carry out the requests of the Will.
FAIR MARKET VALUE A price at which a willing seller and a willing buyer will trade.
FIDUCIARY         A person or institution who manages money or property for another.
GIFTS             Something voluntarily transferred by one person to another without compensation.
GROSS ESTATE      All real and personal property in which the decedent had an interest.
HEIR              A person who inherits under the laws of intestacy without a Will.
INTESTATE LAWS    Laws which prescribe the disposition of assets for persons who die without a Will or Testament.
JOINT TENANT      A term used to express a common property interest or a common liability incurred by two or more persons.
JOINT TRANSFER    A transfer of real or personal property between joint tenants.
LEGACY            The disposition by a last Will and Testament of personal or real property or interests.
LEGATEE           A person who receives an interest in personal or real property from a decedent under a Will.
NET ESTATE        The difference between the assets and the debts and expenses of an estate.
PERSONAL PROPERTY Property other than real property.
PROBATE ESTATE    The property of a decedent that is subject to administration by the executor or the administrator.
PROMISSORY NOTE   A promise or agreement in writing to pay a specific sum at the time therein limited, or on demand or at sight to a person
                  therein named or to its owner or bearer.
PUBLIC CHARITY    An organization which qualifies as an exempt organization under Section 501(C)(3) of the Internal Revenue Code
                  of 1986 or its predecessor section.
REAL ESTATE/      Property that is permanent, fixed and immovable and includes all land and buildings thereon.
REAL PROPERTY
REST & RESIDUE    Remainder of the estate after debts, expenses of administration and specific bequests to legatees have been satisfied.
SPECIFIC BEQUEST  A gift by Will of a certain article or part of an estate to a legatee.
SPOUSE            One's husband or wife; and, "surviving spouse," is one of a married pair who outlives the other.
SUCCESSION        The transmission of the rights and obligation of a deceased person to his or her heirs.
TANGIBLE PERSONAL Personal property which has physical substance.
PROPERTY
TENANT IN COMMON  Ownership by two or more persons, each owning an undivided share of the whole.
TRANSFERS         A conveyance of rights, title or interest in real or personal property from one person to another.
TRUST             A right of property, real or personal, held by one party for the benefit of another.
                                                                                                                                          L&S
                                                                                                                                  Glossary
                                                                                                                                  Rev. 11/00

     FORM                     NEW HAMPSHIRE DEPARTMENT OF REVENUE ADMINISTRATION
     NH-706                              ESTATE TAX RETURN
       161
          PLEASE PRINT OR TYPE                                                                                                                                                FOR DRA USE ONLY
STEP 1    ESTATE OF:                                          LAST NAME                                           FIRST NAME        MIDDLE INITIAL    DECEDENT'S SSN                  DATE OF DEATH
NAME
ADDRESS   DOMICLE AT DATE OF DEATH:                STREET                                             CITY/TOWN                                        STATE             COUNTY                                   PROBATE NO.
SSN
FEIN      NAME OF EXECUTOR/ADMINISTRATOR:  LAST NAME                                     FIRST NAME                                 MIDDLE INITIAL   EXECUTOR'S/ADMINISTRATOR'S SSN OR FEIN

          EXECUTOR/ADMINISTRATOR ADDRESS:                                                          STREET                                     CITY/TOWN         STATE                                            ZIP CODE

STEP 2    Authorization is granted to the representative listed below to receive confidential tax information under RSA 21-J:14 and to act as the
POWER     estate's representative before the NH Department of Revenue Administration.
OF        NAME OF REPRESENTATIVE:                            STREET                    CITY/TOWN                 STATE                         ZIP CODE          (AREA CODE) TELEPHONE NO.
ATTORNEY
          SIGNATURE OF EXECUTOR/ADMINISTRATOR (THIS LINE MUST BE SIGNED TO GRANT A POWER OF ATTORNEY):

STEP 3    Has an extension to file the Federal Estate Tax Return been granted?   Yes                No                If yes, attach a copy of the approved
CHECK     Federal Extension request.
THE
BOXES     Is this an        Initial Return or          Amended Return?
STEP 4    1 Gross credit for state death taxes allowed on Federal Estate Tax Return.............. 1
FIGURE
ESTATE    2     Gross value of property located in New Hampshire................................................ 2
TAX       3     Value of total gross estate for Federal Estate Tax purposes................................... 3

          4     Percent of property located in New Hampshire (Line 2 divided by Line 3, expressed as a decimal to three places)........................  4                     .
          5 New Hampshire Estate Tax (Line 4 multiplied by Line 1)................................................................................................  5

STEP 5    6 Credits:           (a) Estimated tax paid................................................................        6(a)
FIGURE
CREDITS                        (b) Credits allowed under RSA 86............................................                  6(b)
INTEREST                       (c) Tax paid with original return (amended returns only)..........                            6(c)
AND                            (d) Other credits or payments      (Attach explanation)...........................            6(d)
PENALTIES
          6     TOTAL CREDITS................................................................................................................................................ 6
          7 Balance of tax due (Line 5 less Line 6)..............................................................................................................             7

          8 Additions to tax:  (a) Interest................................................................................ 8(a)
                               (b) Failure to pay....................................................................... 8(b)
                               (c) Failure to file........................................................................ 8(c)
          9     TOTAL ADDITIONS TO TAX..............................................................................................................................  9

STEP 6    10    Balance Due (Line 7 plus Line 9) Make check payable to: State of New Hampshire....................................... 10
BALANCE   11    Refund Due (Line 6 less Line 5, adjusted by Line 9)........................................................................................ 11
DUE OR
REFUND
          THIS RETURN MUST BE ACCOMPANIED BY A COMPLETE COPY OF THE FEDERAL ESTATE TAX RETURN (FORM 706)

STEP 7    Under penalties of perjury, I declare that I have examined this return and to the best of my belief it is true, correct and complete.  If prepared by
SIGNATURE a person other than the taxpayer, this declaration is based on all information of which the preparer has knowledge.

FOR DRA USE ONLY

                SIGNATURE OF EXECUTOR/ADMINISTRATOR                          DATE                                            PREPARER'S SIGNATURE IF OTHER THAN EXECUTOR/ADMINISTRATOR     DATE

                                                                                                                             PREPARER'S TAX IDENTIFICATION NUMBER

                               NH DEPT OF REVENUE ADMINISTRATION                                                             PREPARER'S ADDRESS
                     MAIL DOCUMENT PROCESSING DIVISION
                     TO:       PO BOX 637
                               CONCORD NH  03302-0637                                                                        CITY/TOWN, STATE & ZIP CODE
                                                                                                                                                                                                                         NH-706
                                                                                                                                                                                                                         Rev 11/00

FORM                        NEW HAMPSHIRE DEPARTMENT OF REVENUE ADMINISTRATION
NH-706                                             ESTATE TAX RETURN
Instructions                                       GENERAL INSTRUCTIONS

WHO MUST FILE The executor or administrator must file a Form NH-706 Estate Tax Return if:
              A resident decedent has a total gross estate of $600,000 or more, prior to and through 1997, and files a  Federal Form 706;
              or a resident decedent has a total gross estate of $625,000 or more through 1998 and files a Federal Form 706 (See chart
              below for other years); or a non-resident decedent  owns real estate and/or tangible personal property in NH and files a
              Federal Form 706.
              Calendar Year            Credit Amount                   Calendar Year                   Credit Amount
              1998                       $    625,000                  2002 & 2003                       $    700,000
              1999                       $    650,000                  2004                              $    850,000
              2000                       $    675,000                  2005                              $    950,000
              2001                       $    675,000                  2006                              $ 1,000,000
              IRC Section: 2035 Effective Date 8/5/97      RSA 87:1

WHAT TO FILE  You must file the Form NH-706 Estate Tax Return along with full payment within 9 months from the decedent's date of death.
              If the return cannot be filed on time, then file a Form NH-706 Estimate with full payment of the tax due.

WHEN TO FILE  The Form NH-706 Estate Tax Return and payment are due 9 months from the decedent's date of death.

WHERE TO FILE NH DEPARTMENT OF REVENUE ADMINISTRATION
              DOCUMENT PROCESSING DIVISION
              PO BOX 637
              CONCORD, NH   03302-0637                             FACSIMILE DOCUMENTS ARE NOT ACCEPTED

WHAT YOU      A complete copy of the Federal Form 706 as filed with the United States Internal Revenue Service including all attachments
WILL NEED     must be filed with the Form NH-706 Estate Tax Return.

CONFIDENTIAL  Disclosure of Social Security Numbers is mandatory under Department of Revenue Administration rules 203.01, 221.02,
INFORMATION   221.03 and 1308.04 (a).  This information is required for the purpose of administering the tax laws of this state and
              authorized by 42 U.S.C.S. § 405 (c)(2)(C)(i).
              Tax information which is disclosed to the New Hampshire Department of Revenue Administration is held in strict confidence
              by law.  The information may be disclosed to the United States Internal Revenue Service, agencies responsible for the
              administration of taxes in other states in accordance with compacts for the exchange of information, and as otherwise
              authorized by New Hampshire Revised Statutes Annotated 21-J:14.
              The failure to provide Social Security Numbers may result in the rejection of a return or application.  The failure to timely
              file a return or application complete with Social Security Account Numbers may result in the imposition of civil or criminal
              penalties, the disallowance of claimed exemptions, exclusions, credits, deductions, or adjustment that may result in
              increased tax liability.
EXTENSION     An extension to file will be granted only when a copy of the approved Federal Extension is attached to the Form NH-706 Estate
TO FILE       Tax Return.

PAYMENT  OF   An executor or administrator may make an estimated payment of the tax liability using a Form NH-706 Estimated Estate Tax
ESTIMATED TAX payment form.

ROUNDING OFF  Money items on all Form NH-706 Estate Tax may be rounded off to the nearest whole dollar.
TO WHOLE
DOLLARS

NEED FORMS    Forms are available at each county Probate Court or by calling the Department's forms line  (603)  271-2192, 24 hours a day,
OR HELP       7 days a week.  For taxpayer assistance, call the New Hampshire Department of Revenue Administration, Audit Division at
              (603) 271-2580, Monday through Friday, 8:00 a.m. to 4:30 p.m.  Hearing or speech impaired individuals may call TDD Access:
              Relay NH 1-800-735-2964.
PROBATE       Questions regarding Probate Court documents of filing should be directed to the Probate Court in the County where the
COURT         decedent resided.
                   Belknap County      (603) 524-0903                  Hillsborough County             (603) 882-1231
                   Carroll County      (603) 539-4123                  Merrimack County                (603) 224-9589
                   CheshireCounty      (603) 357-7786                  Rockingham County               (603) 642-7117
                   Coos County         (603) 788-2001                  Stratford County                (603) 742-2550
                   Grafton County      (603) 787-6931                  Sullivan County                 (603) 863-3150

                                                                                                                       NH 706
                                                                                                                       Instructions
                                                                                                                       Rev. 11/00

FORM                              NEW HAMPSHIRE DEPARTMENT OF REVENUE ADMINISTRATION
NH-706
Instructions                                   ESTATE TAX RETURN
                                               LINE-BY-LINE INSTRUCTIONS
STEP 1       Type or print the name of the decedent, the domicile of the decedent at date of death, the decedent's social security number, the date of
             death, and the probate number if applicable.  Type or print the executor or administrator name, address and social security number or federal
             employer identification number.
STEP 2       Complete this section if someone other than the executor or administrator will represent the estate on matters dealing with this tax
             return. THE EXECUTOR OR ADMINISTRATOR MUST SIGN ON THIS LINE IN ADDITION TO SIGNING THE RETURN FOR THE POWER OF
             ATTORNEY TO BE EFFECTIVE.
STEP 3       Check the Initial Return box only if this is the first Form NH-706 Return that has ever been filed.  Check the Amended Return box if this is the
             second (or additional) return that has been filed for this estate.  Attach a copy of approved Federal Extension request.

STEP 4       Line 1      Enter the amount from line 15 (credit for state death taxes) found on the Federal Estate Tax Return (Form 706).
             Line 2      Enter the total value of real and personal property located in New Hampshire as of the decedent's date of death.
             Line 3      Enter the amount from line 1, Federal Estate Tax Return (Form 706).
             Line 4      Enter the percent of the property located in New Hampshire (Line 2 divided by Line 3), expressed as a decimal to 3 places.
             Line 5      Enter the New Hampshire Estate Tax (Line 1 multiplied by Line 4).
STEP 5       Line 6 (a)  Enter the amount of estimated tax paid with Form NH-706-ES.
                     (b) Enter the amount of tax paid under RSA 86.
                     (c) Enter the amount paid with the original return.
                     (d) Enter any other credits or payments and attach an explanation.
             Line 6      Enter the total of lines 6(a) - 6(d).
             Line 7      Enter the total amount of line 5 minus line 6.
             Line 8  (a) INTEREST.  Interest is calculated on the balance of  tax due (line 7) from the original due date to the date paid at the applicable
                         rate listed below.  Tax due x number of days from due date to date tax was paid x daily rate decimal equivalent.
                                            x                              x .                         =                                   Enter on line 8 (a).
                         Tax Due (line 7)             Number of Days          Daily decimal rate equivalent            Interest Due
                                                                        (see below for applicable rates)
                         NOTE:  The interest rate is recomputed each year under the provisions of RSA 21-J:28, II.  Applicable rates are as
                         follows: (contact the department for applicable rates in any other year)
                              PERIOD                                   RATE                            DAILY RATE DECIMAL EQUIVALENT
                         1/1/2002 - 12/31/2002                            9%                             .000274
                         1/1/2001 - 12/31/2001                          11%                              .000301
                         1/1/1999 - 12/31/2000                          10%                              .000274
                         1/1/1998 - 12/31/1998                          11%                              .000301
                              Prior to 1/1/98                           15%                              .000411

                     (b) FAILURE TO PAY:  A penalty equal to 10% of any nonpayment or underpayment of taxes shall be imposed if the taxpayer fails
                         to pay the tax when due and the failure to pay is due to willful neglect or intentional disregard of the law but without intent to
                         defraud.  If the failure to pay is due to fraud, the penalty shall be 50% of the amount of the nonpayment or underpayment.
                     (c) FAILURE TO FILE:  A taxpayer failing to timely file a complete return will be subject to a penalty equal to 5% of the tax due or
                         $10, whichever is greater, for each month or part thereof that the return remains unfiled or incomplete.  The total amount of
                         this penalty shall not exceed 25% of the balance of tax due or $50, whichever is greater.  Calculate this penalty starting from
                         the original due date of the return until the date a complete return is filed.
             Line 9      Enter the sum of lines 8(a), 8(b) and 8(c).

STEP 6       Line 10     If the total tax (Line 5) plus interest and penalties (Line 9) is greater than the amount previously paid, (Line 6), then enter the
                         balance due.  If less than $1.00, do not pay, but still file the return.  Make check or money order payable to: STATE OF NEW
                         HAMPSHIRE. To ensure that the check is credited to the proper account, please put the decedent's name and social security
                         number on the check.
             Line 11     If the total tax (Line 5) plus interest and penalties (Line 9) is less than the amount previously paid, (Line 6), then you have
                         overpaid the tax and a refund is due.  Enter the amount on line 11.  Please allow 12 weeks for processing your refund.

STEP 7       This return must be accompanied by a complete copy of the Federal Estate Tax Return, Form 706.  The return must be
             dated and signed in ink by the executor or administrator.  If the return was completed by a paid preparer, then the preparer
             must also sign and date the return.  The preparer must also enter their Federal Employer Identification Number or
             Preparer's Tax Identification Number and complete address.
                                                                                                                                                 NH-706
                                                                                                                                         Instructions
                                                                                                                                                 Rev. 11/01

FORM                                NEW HAMPSHIRE DEPARTMENT OF REVENUE ADMINISTRATION
NH-706-ES                                              ESTIMATED ESTATE TAX
162                                                                                                             INSTRUCTIONS

WHEN TO           An estimate payment of the tax due may be made prior to 9 months from the date of death, even if the tax return is under Federal
FILE              Extension.  100% of the tax due must be paid on or before 9 months from the date of death regardless of whether estimated
                  payments are made.

WHERE TO          NH Department of Revenue Administration, PO Box 637, Concord, NH 03302-0637
FILE

NEED HELP         Call the New Hampshire Department of Revenue Administration, Audit Division (603) 271-2580.  Hearing or speech impaired
                  individuals may call TDD Access:  Relay NH 1-800-735-2964.

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FORM                  NEW HAMPSHIRE DEPARTMENT OF REVENUE ADMINISTRATION
NH-706-ES                              ESTIMATED ESTATE TAX
162

PAYMENT FORM
Due: On or Before Please Print or Type                                                                                                                          FOR DRA USE ONLY
Nine Months From  ESTATE OF :                  LAST NAME                                      FIRST NAME                MIDDLE INITIAL        DECEDENT'S SSN                                     DATE OF DEATH
Date of Death
                  DOMICILE AT DATE OF DEATH:   ADDRESS                         CITY/TOWN                    STATE                                   COUNTY                                   PROBATE NUMBER
FOR DRA USE ONLY
                  NAME OF EXECUTOR/ADMINISTRATOR:  LAST NAME        FIRST NAME                 MIDDLE INITIAL    EXECUTOR/ADMINISTRATOR SSN OR FEIN

                  EXECUTOR/ADMINISTRATOR:      ADDRESS                                                                                        CITY/TOWN                    STATE                                    ZIP CODE

                                                                                                                                      Amount of This Payment   $
                      NH DEPT OF REVENUE ADMINISTRATION
                  MAIL DOCUMENT PROCESSING DIVISION                                                                                   Make checks payable to: STATE OF NEW HAMPSHIRE
                  TO: PO BOX 637                                                                                                      Enclose, but do not staple or tape, your payment with
                      CONCORD NH    03302-0637                                                                                        this estimate.  Do not file a $0 estimate.
                                                                                                                                                                                                                            NH-706-ES
                                                                                                                                                                                                                            Rev. 11/00

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FORM                  NEW HAMPSHIRE DEPARTMENT OF REVENUE ADMINISTRATION
NH-706-ES                              ESTIMATED ESTATE TAX
162
PAYMENT FORM
Due: On or Before Please Print or Type                                                                                                                          FOR DRA USE ONLY
Nine Months From
Date of Death     ESTATE OF :                  LAST NAME                                 FIRST NAME                  MIDDLE INITIAL     DECEDENT'S SSN                                      DATE OF DEATH

                  DOMICILE AT DATE OF DEATH:   ADDRESS                    CITY/TOWN                    STATE                    COUNTY                                                    PROBATE NUMBER
FOR DRA USE ONLY
                  NAME OF EXECUTOR/ADMINISTRATOR:  LAST NAME      FIRST NAME               MIDDLE INITIAL      EXECUTOR/ADMINISTRATOR SSN OR FEIN

                  EXECUTOR/ADMINISTRATOR:      ADDRESS                                                                                    CITY/TOWN                   STATE                                    ZIP CODE

                                                                                                                                      Amount of This Payment  $
                      NH DEPT OF REVENUE ADMINISTRATION
                  MAIL DOCUMENT PROCESSING DIVISION                                                                                   Make checks payable to: STATE OF NEW HAMPSHIRE
                  TO: PO BOX 637                                                                                                      Enclose, but do not staple or tape, your payment with
                      CONCORD NH    03302-0637                                                                                        this estimate.  Do not file a $0 estimate.                                            NH-706-ES
                                                                                                                                                                                                                            Rev. 11/00