Haw. Rev. Stat. § 554G-4 — HI Code / Division 3 / Title 30 / Chapter 554G / Section 554G-4
Permitted trustees.
Status: in_force

If a permitted trustee of a trust ceases to meet the criteria for a permitted trustee as defined in section 554G-2, and there remains no trustee that meets the requirements, the permitted trustee shall be deemed to have resigned as of the time that the trustee ceases to meet the criteria. At that time, the successor permitted trustee provided for in the trust instrument shall become the permitted trustee of the trust. In the absence of any successor permitted trustee provided for in the trust instrument, a trust advisor or protector provided for in the trust instrument shall appoint a successor permitted trustee. In the absence of a designated trust advisor or protector or in the event of the failure of the designated trust advisor or protector to appoint a successor permitted trustee, the circuit court sitting in probate, upon application of any interested party, shall appoint a successor permitted trustee.
Haw. Rev. Stat. § 551E — HI Code / Division 3 / Title 30 / Chapter 551E / Section 551E
‑40] Insurance and annuities.
Status: in_force

[§551E‑40] Insurance and annuities. Unless the power of attorney otherwise provides, language in a power of attorney granting general authority with respect to insurance and annuities shall authorize the agent to:

(1) Continue, pay the premium or make a contribution on, modify, exchange, rescind, release, or terminate a contract procured by or on behalf of the principal that insures or provides an annuity to either the principal or another person, whether or not the principal is a beneficiary under the contract;

(2) Procure new, different, and additional contracts of insurance and annuities for the principal and the principal's spouse, children, and other dependents, and select the amount, type of insurance or annuity, and mode of payment;

(3) Pay the premium or make a contribution on, modify, exchange, rescind, release, or terminate a contract of insurance or annuity procured by the agent;

(4) Apply for and receive a loan secured by a contract of insurance or annuity;

(5) Surrender and receive the cash surrender value on a contract of insurance or annuity;

(6) Exercise an election;

(7) Exercise investment powers available under a contract of insurance or annuity;

(8) Change the manner of paying premiums on a contract of insurance or annuity;

(9) Change or convert the type of insurance or annuity with respect to which the principal has or claims to have authority described in this section;

(10) Apply for and procure a benefit or assistance under a statute or regulation to guarantee or pay premiums of a contract of insurance on the life of the principal;

(11) Collect, sell, assign, hypothecate, borrow against, or pledge the interest of the principal in a contract of insurance or annuity;

(12) Select the form and timing of the payment of proceeds from a contract of insurance or annuity; and

(13) Pay, from proceeds or otherwise; compromise or contest; and apply for refunds in connection with a tax or assessment levied by a taxing authority with respect to a contract of insurance or annuity or its proceeds or liability accruing by reason of the tax or assessment. [L 2014, c 22, pt of §1][§551E‑36] Stocks and bonds. Unless the power of attorney otherwise provides, language in a power of attorney granting general authority with respect to stocks and bonds shall authorize the agent to:

(1) Buy, sell, and exchange stocks and bonds;

(2) Establish, continue, modify, or terminate an account with respect to stocks and bonds;

(3) Pledge stocks and bonds as security to borrow, pay, renew, or extend the time of payment of a debt of the principal;

(4) Receive certificates and other evidences of ownership with respect to stocks and bonds; and

(5) Exercise voting rights with respect to stocks and bonds in person or by proxy, enter into voting trusts, and consent to limitations on the right to vote. [L 2014, c 22, pt of §1][§551E‑34] Real property. Unless the power of attorney otherwise provides, language in a power of attorney granting general authority with respect to real property shall authorize the agent to:

(1) Demand, buy, lease, receive, accept as a gift or as security for an extension of credit, or otherwise acquire or reject an interest in real property or a right incident to real property;

(2) Sell; exchange; convey with or without covenants, representations, or warranties; quitclaim; release; surrender; retain title for security; encumber; partition; consent to partitioning; subject to an easement or covenant; subdivide; apply for zoning or other governmental permits; plat or consent to platting; develop; grant an option concerning; lease; sublease; contribute to an entity in exchange for an interest in that entity; or otherwise grant or dispose of an interest in real property or a right incident to real property;

(3) Pledge or mortgage an interest in real property or right incident to real property as security to borrow money or pay, renew, or extend the time of payment of a debt of the principal or a debt guaranteed by the principal;

(4) Release, assign, satisfy, or enforce by litigation or otherwise a mortgage, deed of trust, conditional sale contract, encumbrance, lien, or other claim to real property that exists or is asserted;

(5) Manage or conserve an interest in real property or a right incident to real property owned or claimed to be owned by the principal, including by:

(A) Insuring against liability or casualty or other loss;

(B) Obtaining or regaining possession of or protecting the interest or right by litigation or otherwise;

(C) Paying, assessing, compromising, or contesting taxes or assessments or applying for and receiving refunds in connection with them; and

(D) Purchasing supplies, hiring assistance or labor, and making repairs or alterations to the real property;

(6) Use, develop, alter, replace, remove, erect, or install structures or other improvements upon real property in or incident to which the principal has, or claims to have, an interest or right;

(7) Participate in a reorganization with respect to real property or an entity that owns an interest in or right incident to real property and receive, hold, and act with respect to stocks and bonds or other property received in a plan of reorganization, including by:

(A) Selling or otherwise disposing of them;

(B) Exercising or selling an option, right of conversion, or similar right with respect to them; and

(C) Exercising any voting rights in person or by proxy;

(8) Change the form of title of an interest in or right incident to real property; and

(9) Dedicate to public use, with or without consideration, easements or other real property in which the principal has, or claims to have, an interest. [L 2014, c 22, pt of §1][§551E‑46] Taxes. Unless the power of attorney otherwise provides, language in a power of attorney granting general authority with respect to taxes shall authorize the agent to:

(1) Prepare, sign, and file federal, state, local, and foreign income, gift, payroll, property, Federal Insurance Contributions Act, and other tax returns, claims for refunds, requests for extension of time, petitions regarding tax matters, and any other tax-related documents, including receipts, offers, waivers, consents, including consents and agreements under Internal Revenue Code section 2032A, [title 26] United States Code section 2032A, as amended, closing agreements, and any power of attorney required by the Internal Revenue Service or other taxing authority with respect to a tax year upon which the statute of limitations has not run and the following twenty-five tax years;

(2) Pay taxes due, collect refunds, post bonds, receive confidential information, and contest deficiencies determined by the Internal Revenue Service or other taxing authority;

(3) Exercise any election available to the principal under federal, state, local, or foreign tax law; and

(4) Act for the principal in all tax matters for all periods before the Internal Revenue Service, or other taxing authority. [L 2014, c 22, pt of §1][§551E‑17] Principles of law and equity. Unless displaced by a provision of this chapter, the principles of law and equity shall supplement this chapter.[§551E‑18] Laws applicable to financial institutions and entities. This chapter shall not supersede any other law applicable to financial institutions or other entities, and the other law shall control if inconsistent with this chapter.[§551E‑37] Commodities and options. Unless the power of attorney otherwise provides, language in a power of attorney granting general authority with respect to commodities and options shall authorize the agent to:

(1) Buy, sell, exchange, assign, settle, and exercise commodity futures contracts and call or put options on stocks or stock indexes traded on a regulated option exchange; and

(2) Establish, continue, modify, and terminate option accounts. [L 2014, c 22, pt of §1][§551E‑13] Agent's liability. An agent that violates this chapter shall be liable to the principal or the principal's successors in interest for the amount required to:

(1) Restore the value of the principal's property to what it would have been had the violation not occurred; and

(2) Reimburse the principal or the principal's successors in interest for the attorney's fees and costs paid on the agent's behalf. [L 2014, c 22, pt of §1][§551E‑52] Agent's certification. The following optional form may be used by an agent to certify facts concerning a power of attorney.

AGENT'S CERTIFICATION AS TO THE VALIDITY OF POWER OF ATTORNEY AND AGENT'S AUTHORITY

State of ___________________________________________

County of _________________________________

I,_______________________________ (Name of Agent), certify under penalty of perjury that

_____________________________________ (Name of Principal)

granted me authority as an agent or successor agent in a power of attorney dated_______________________ .

I further certify that to my knowledge:

(1) The Principal is alive and has not revoked the Power of Attorney or my authority to act under the Power of Attorney and the Power of Attorney and my authority to act under the Power of Attorney have not terminated;

(2) If the Power of Attorney was drafted to become effective upon the happening of an event or contingency, the event or contingency has occurred;

(3) If I was named as a successor agent, the prior agent is no longer able or willing to serve; and

(4)_ ____________________________________________________

____ ____________________________________________________

____ ____________________________________________________

_________________________________________________________

(Insert other relevant statements)

SIGNATURE AND ACKNOWLEDGMENT

_________________________________ __________________

Agent's Signature Date

_________________________________________________________

Agent's Name Printed

_________________________________________________________

Agent's Address

_________________________________________________________

Agent's Telephone Number

This document was acknowledged before me on

________________________________ ,

(Date)

by______________________________________.

(Name of Agent)

_________________________________ (Seal, if any)

Signature of Notary

My commission expires: _________________________

This document prepared by:

_________________________________________________________[§551E‑32] Incorporation of authority. (a) An agent shall have authority described in this part if the power of attorney refers to general authority with respect to the descriptive term for the subjects stated in sections 551E-34 through 551E-47 or cites the section in which the authority is described.

(b) A reference in a power of attorney to general authority with respect to the descriptive term for a subject in sections 551E-34 through 551E-47 or a citation to a section of sections 551E-34 through 551E-47 incorporates the entire section as if it were set out in full in the power of attorney.

(c) A principal may modify authority incorporated by reference. [L 2014, c 22, pt of §1][§551E‑14] Agent's resignation; notice. Unless the power of attorney provides a different method for an agent's resignation, an agent may resign by giving notice to the principal and, if the principal is incapacitated:

(1) To the conservator or guardian, if one has been appointed for the principal, and a co-agent or successor agent; or

(2) If there is no person described in paragraph (1), to:

(A) The principal's caregiver;

(B) Another person reasonably believed by the agent to have sufficient interest in the principal's welfare; or

(C) A governmental agency having authority to protect the welfare of the principal. [L 2014, c 22, pt of §1][§551E‑44] Benefits from governmental programs or civil or military service. (a) In this section, "benefits from governmental programs or civil or military service" means any benefit, program, or assistance provided under a statute or regulation, including social security, medicare, and medicaid.

(b) Unless the power of attorney otherwise provides, language in a power of attorney granting general authority with respect to benefits from governmental programs or civil or military service shall authorize the agent to:

(1) Execute vouchers in the name of the principal for allowances and reimbursements payable by the United States or a foreign government or by a state or subdivision of a state to the principal, including allowances and reimbursements for transportation of the individuals described in [section] 551E-43(a)(1), and for shipment of their household effects;

(2) Take possession and order the removal and shipment of property of the principal from a post, warehouse, depot, dock, or other place of storage or safekeeping, either governmental or private, and execute and deliver a release, voucher, receipt, bill of lading, shipping ticket, certificate, or other instrument for that purpose;

(3) Enroll in, apply for, select, reject, change, amend, or discontinue, on the principal's behalf, a benefit or program;

(4) Prepare, file, and maintain a claim of the principal for a benefit or assistance, financial or otherwise, to which the principal may be entitled under a statute or regulation;

(5) Initiate, participate in, submit to alternative dispute resolution, settle, oppose, or propose or accept a compromise with respect to litigation concerning any benefit or assistance the principal may be entitled to receive under a statute or regulation; and

(6) Receive the financial proceeds of a claim described in paragraph (4) and conserve, invest, disburse, or use for a lawful purpose anything so received. [L 2014, c 22, pt of §1][§551E‑38] Banks and other financial institutions. Unless the power of attorney otherwise provides, language in a power of attorney granting general authority with respect to banks and other financial institutions shall authorize the agent to:

(1) Continue, modify, and terminate an account or other banking arrangement made by or on behalf of the principal;

(2) Establish, modify, and terminate an account or other banking arrangement with a bank, trust company, savings and loan association, credit union, thrift company, brokerage firm, or other financial institution selected by the agent;

(3) Contract for services available from a financial institution, including renting a safe deposit box or space in a vault;

(4) Withdraw, by check, order, electronic funds transfer, or otherwise, money or property of the principal deposited with or left in the custody of a financial institution;

(5) Receive statements of account, vouchers, notices, and similar documents from a financial institution and act with respect to them;

(6) Enter a safe deposit box or vault and withdraw or add to the contents;

(7) Borrow money and pledge as security personal property of the principal necessary to borrow money or pay, renew, or extend the time of payment of a debt of the principal or a debt guaranteed by the principal;

(8) Make, assign, draw, endorse, discount, guarantee, and negotiate promissory notes, checks, drafts, and other negotiable or nonnegotiable paper of the principal or payable to the principal or the principal's order, transfer money, receive the cash or other proceeds of those transactions, and accept a draft drawn by a person upon the principal and pay it when due;

(9) Receive for the principal and act upon a sight draft, warehouse receipt, or other document of title whether tangible or electronic, or other negotiable or nonnegotiable instrument;

(10) Apply for, receive, and use letters of credit, credit and debit cards, electronic transaction authorizations, and traveler's checks from a financial institution and give an indemnity or other agreement in connection with letters of credit; and

(11) Consent to an extension of the time of payment with respect to commercial paper or a financial transaction with a financial institution. [L 2014, c 22, pt of §1][§551E‑19] Remedies under other law. The remedies under this chapter shall not be exclusive and shall not abrogate any right or remedy under the law of this State other than this chapter.[§551E‑47] Gifts. (a) In this section, a gift "for the benefit of" a person includes a gift to a trust, an account under chapter 553A, the Uniform Transfers to Minors Act, and a tuition savings account or prepaid tuition plan as defined under Internal Revenue Code section 529, [title 26] United States Code section 529, as amended.

(b) Unless the power of attorney otherwise provides, language in a power of attorney granting general authority with respect to gifts shall authorize the agent only to:

(1) Make outright to, or for the benefit of, a person, a gift of any of the principal's property, including by the exercise of a presently exercisable general power of appointment held by the principal, in an amount per donee not to exceed the annual dollar limits of the federal gift tax exclusion under Internal Revenue Code section 2503(b), title 26 United States Code section 2503(b), as amended, without regard to whether the federal gift tax exclusion applies to the gift, or if the principal's spouse agrees to consent to a split gift pursuant to Internal Revenue Code section 2513, title 26 United States Code section 2513, as amended, in an amount per donee not to exceed twice the annual federal gift tax exclusion limit; and

(2) Consent, pursuant to Internal Revenue Code section 2513, title 26 United States Code section 2513, as amended, to the splitting of a gift made by the principal's spouse in an amount per donee not to exceed the aggregate annual gift tax exclusions for both spouses.

(c) An agent may make a gift of the principal's property only as the agent determines is consistent with the principal's objectives if actually known by the agent and, if unknown, as the agent determines is consistent with the principal's best interest based on all relevant factors, including:

(1) The value and nature of the principal's property;

(2) The principal's foreseeable obligations and need for maintenance;

(3) Minimization of taxes, including income, estate, inheritance, generation-skipping transfer, and gift taxes;

(4) Eligibility for a benefit, a program, or assistance under a statute or regulation; and

(5) The principal's personal history of making or joining in making gifts. [L 2014, c 22, pt of §1][§551E‑41] Estates, trusts, and other beneficial interests. (a) In this section, "estate, trust, or other beneficial interest" means a trust, probate estate, guardianship, conservatorship, escrow, or custodianship or a fund from which the principal is, may become, or claims to be, entitled to a share or payment.

(b) Unless the power of attorney otherwise provides, language in a power of attorney granting general authority with respect to estates, trusts, and other beneficial interests shall authorize the agent to:

(1) Accept, receive, receipt for, sell, assign, pledge, or exchange a share in or payment from an estate, trust, or other beneficial interest;

(2) Demand or obtain money or another thing of value to which the principal is, may become, or claims to be, entitled by reason of an estate, trust, or other beneficial interest, by litigation or otherwise;

(3) Exercise for the benefit of the principal a presently exercisable general power of appointment held by the principal;

(4) Initiate, participate in, submit to alternative dispute resolution, settle, oppose, or propose or accept a compromise with respect to litigation to ascertain the meaning, validity, or effect of a deed, will, declaration of trust, or other instrument or transaction affecting the interest of the principal;

(5) Initiate, participate in, submit to alternative dispute resolution, settle, oppose, or propose or accept a compromise with respect to litigation to remove, substitute, or surcharge a fiduciary;

(6) Conserve, invest, disburse, or use anything received for an authorized purpose;

(7) Transfer an interest of the principal in real property, stocks and bonds, accounts with financial institutions or securities intermediaries, insurance, annuities, and other property to the trustee of a revocable trust created by the principal as settlor; and

(8) Reject, renounce, disclaim, release, or consent to a reduction in or modification of a share in or payment from an estate, trust, or other beneficial interest. [L 2014, c 22, pt of §1][§551E‑12] Judicial relief. (a) The following persons may petition a court to construe a power of attorney or review the agent's conduct, and grant appropriate relief:

(1) The principal or the agent;

(2) A guardian, conservator, or other fiduciary acting for the principal;

(3) A person authorized to make health care decisions for the principal;

(4) The principal's spouse, parent, or descendant;

(5) An individual who would qualify as a presumptive heir of the principal;

(6) A person named as a beneficiary to receive any property, benefit, or contractual right on the principal's death or as a beneficiary of a trust created by or for the principal that has a financial interest in the principal's estate;

(7) A governmental agency having regulatory authority to protect the welfare of the principal;

(8) The principal's caregiver or another person that demonstrates sufficient interest in the principal's welfare; and

(9) A person asked to accept the power of attorney.

(b) Upon motion by the principal, the court shall dismiss a petition filed under this section, unless the court finds that the principal lacks capacity to revoke the agent's authority or the power of attorney. [L 2014, c 22, pt of §1][§551E‑16] Liability for refusal to accept acknowledged power of attorney. (a) Except as otherwise provided in subsection (b):

(1) A person shall either accept an acknowledged power of attorney or request a certification, a translation, or an opinion of counsel under section 551E‑15(d) no later than seven business days after presentation of the power of attorney for acceptance;

(2) If a person requests a certification, a translation, or an opinion of counsel under section 551E‑15(d), the person shall accept the power of attorney no later than five business days after receipt of the certification, translation, or opinion of counsel; and

(3) A person may not require an additional or different form of power of attorney for authority granted in the power of attorney presented.

(b) A person shall not be required to accept an acknowledged power of attorney if:

(1) The person is not otherwise required to engage in a transaction with the principal in the same circumstances;

(2) Engaging in a transaction with the agent or the principal in the same circumstances would be inconsistent with federal law;

(3) The person has actual knowledge of the termination of the agent's authority or of the power of attorney before exercise of the power;

(4) A request for a certification, a translation, or an opinion of counsel under section 551E‑15(d) is refused;

(5) The person in good faith believes that the power is not valid or that the agent does not have the authority to perform the act requested, whether or not a certification, a translation, or an opinion of counsel under section 551E‑15(d) has been requested or provided; or

(6) The person makes, or has actual knowledge that another person has made, a report to the adult protective and community services branch of the department of human services stating a good faith belief that the principal may be subject to physical or financial abuse, neglect, exploitation, or abandonment by the agent or a person acting for or with the agent.

(c) A person that refuses to accept an acknowledged power of attorney in violation of this section shall be subject to:

(1) A court order mandating acceptance of the power of attorney; and

(2) Liability for reasonable attorney's fees and costs incurred in any action or proceeding that confirms the validity of the power of attorney or mandates acceptance of the power of attorney. [L 2014, c 22, pt of §1][§551E‑43] Personal and family maintenance. (a) Unless the power of attorney otherwise provides, language in a power of attorney granting general authority with respect to personal and family maintenance shall authorize the agent to:

(1) Perform the acts necessary to maintain the customary standard of living of the principal, the principal's spouse, and the following individuals, whether living when the power of attorney is executed or later born:

(A) The principal's children;

(B) Other individuals legally entitled to be supported by the principal; and

(C) The individuals whom the principal has customarily supported or indicated the intent to support;

(2) Make periodic payments of child support and other family maintenance required by a court or governmental agency or an agreement to which the principal is a party;

(3) Provide living quarters for the individuals described in paragraph (1) by:

(A) Purchase, lease, or other contract; or

(B) Paying the operating costs, including interest, amortization payments, repairs, improvements, and taxes, for premises owned by the principal or occupied by those individuals;

(4) Provide normal domestic help, usual vacations and travel expenses, and funds for shelter, clothing, food, appropriate education, including postsecondary and vocational education, and other current living costs for the individuals described in paragraph (1);

(5) Pay expenses for necessary health care and custodial care on behalf of the individuals described in paragraph (1);

(6) Act as the principal's personal representative pursuant to the Health Insurance Portability and Accountability Act, sections 1171 through 1179 of the Social Security Act, title 42 United States Code section 1320d, as amended, and applicable regulations, in making decisions related to the past, present, or future payment for the provision of health care consented to by the principal or anyone authorized under the law of this State to consent to health care on behalf of the principal;

(7) Continue any provision made by the principal for automobiles or other means of transportation, including registering, licensing, insuring, and replacing them, for the individuals described in paragraph (1);

(8) Maintain credit and debit accounts for the convenience of the individuals described in paragraph (1) and open new accounts; and

(9) Continue payments incidental to the membership or affiliation of the principal in a religious institution, club, society, order, or other organization or to continue contributions to those organizations.

(b) Authority with respect to personal and family maintenance shall be neither dependent upon, nor limited by, authority that an agent may or may not have with respect to gifts under this chapter. [L 2014, c 22, pt of §1][§551E‑15] Acceptance of and reliance upon acknowledged power of attorney. (a) For purposes of this section and section 551E‑16, "acknowledged" means purportedly verified before a notary public or other individual authorized to take acknowledgments.

(b) A person that in good faith accepts an acknowledged power of attorney without actual knowledge that the signature is not genuine may rely upon the presumption under section 551E‑3(b) that the signature is genuine.

(c) A person that in good faith accepts an acknowledged power of attorney without actual knowledge that the power of attorney is void, invalid, or terminated, that the purported agent's authority is void, invalid, or terminated, or that the agent is exceeding or improperly exercising the agent's authority may rely upon the power of attorney as if the power of attorney were genuine, valid, and still in effect, the agent's authority were genuine, valid, and still in effect, and the agent had not exceeded and had properly exercised the authority.

(d) A person that is asked to accept an acknowledged power of attorney may request, and rely upon, without further investigation:

(1) An agent's certification under penalty of perjury of any factual matter concerning the principal, agent, or power of attorney;

(2) An English translation of the power of attorney if the power of attorney contains, in whole or in part, language other than English; and

(3) An opinion of counsel as to any matter of law concerning the power of attorney if the person making the request provides in a writing or other record the reason for the request.

(e) An English translation or an opinion of counsel requested under this section shall be provided at the principal's expense unless the request is made more than seven business days after the power of attorney is presented for acceptance.

(f) For purposes of this section and section 551E‑16, a person that conducts activities through employees is without actual knowledge of a fact relating to a power of attorney, a principal, or an agent if the employee conducting the transaction involving the power of attorney is without actual knowledge of the fact. [L 2014, c 22, pt of §1][§551E‑39] Operation of entity or business. Unless the power of attorney otherwise provides, and subject to the terms of a document or an agreement governing an entity or an entity ownership interest, language in a power of attorney granting general authority with respect to operation of an entity or business shall authorize the agent to:

(1) Operate, buy, sell, enlarge, reduce, or terminate an ownership interest;

(2) Perform a duty or discharge a liability and exercise in person or by proxy a right, power, privilege, or option that the principal has, may have, or claims to have;

(3) Enforce the terms of an ownership agreement;

(4) Initiate, participate in, submit to alternative dispute resolution, settle, oppose, or propose or accept a compromise with respect to litigation to which the principal is a party because of an ownership interest;

(5) Exercise in person or by proxy, or enforce by litigation or otherwise, a right, power, privilege, or option the principal has or claims to have as the holder of stocks and bonds;

(6) Initiate, participate in, submit to alternative dispute resolution, settle, oppose, or propose or accept a compromise with respect to litigation to which the principal is a party concerning stocks and bonds;

(7) With respect to an entity or business owned solely by the principal:

(A) Continue, modify, renegotiate, extend, and terminate a contract made by or on behalf of the principal with respect to the entity or business before execution of the power of attorney;

(B) Determine:

(i) The location of its operation;

(ii) The nature and extent of its business;

(iii) The methods of manufacturing, selling, merchandising, financing, accounting, and advertising employed in its operation;

(iv) The amount and types of insurance carried; and

(v) The mode of engaging, compensating, and dealing with its employees and accountants, attorneys, or other advisors;

(C) Change the name or form of organization under which the entity or business is operated and enter into an ownership agreement with other persons to take over all or part of the operation of the entity or business; and

(D) Demand and receive money due or claimed by the principal or on the principal's behalf in the operation of the entity or business and control and disburse the money in the operation of the entity or business;

(8) Put additional capital into an entity or business in which the principal has an interest;

(9) Join in a plan of reorganization, consolidation, conversion, domestication, or merger of the entity or business;

(10) Sell or liquidate all or part of an entity or business;

(11) Establish the value of an entity or business under a buy-out agreement to which the principal is a party;

(12) Prepare, sign, file, and deliver reports, compilations of information, returns, or other papers with respect to an entity or business and make related payments; and

(13) Pay, compromise, or contest taxes, assessments, fines, or penalties and perform any other act to protect the principal from illegal or unnecessary taxation, assessments, fines, or penalties, with respect to an entity or business, including attempts to recover, in any manner permitted by law, money paid before or after the execution of the power of attorney. [L 2014, c 22, pt of §1][§551E‑35] Tangible personal property. Unless the power of attorney otherwise provides, language in a power of attorney granting general authority with respect to tangible personal property shall authorize the agent to:

(1) Demand, buy, receive, accept as a gift or as security for an extension of credit, or otherwise acquire or reject ownership or possession of tangible personal property or an interest in tangible personal property;

(2) Sell; exchange; convey with or without covenants, representations, or warranties; quitclaim; release; surrender; create a security interest in; grant options concerning; lease; sublease; or otherwise dispose of tangible personal property or an interest in tangible personal property;

(3) Grant a security interest in tangible personal property or an interest in tangible personal property as security to borrow money or pay, renew, or extend the time of payment of a debt of the principal or a debt guaranteed by the principal;

(4) Release, assign, satisfy, or enforce by litigation or otherwise, a security interest, lien, or other claim on behalf of the principal, with respect to tangible personal property or an interest in tangible personal property;

(5) Manage or conserve tangible personal property or an interest in tangible personal property on behalf of the principal, including:

(A) Insuring against liability or casualty or other loss;

(B) Obtaining or regaining possession of or protecting the property or interest, by litigation or otherwise;

(C) Paying, assessing, compromising, or contesting taxes or assessments or applying for and receiving refunds in connection with taxes or assessments;

(D) Moving the property from place to place;

(E) Storing the property for hire or on a gratuitous bailment; and

(F) Using and making repairs, alterations, or improvements to the property; and

(6) Change the form of title of an interest in tangible personal property. [L 2014, c 22, pt of §1][§551E‑45] Retirement plans. (a) In this section, "retirement plan" means a plan or account created by an employer, the principal, or another individual to provide retirement benefits or deferred compensation of which the principal is a participant, beneficiary, or owner, including a plan or account under the following sections of the Internal Revenue Code of 1986, as amended:

(1) An individual retirement account under Internal Revenue Code section 408, title 26 United States Code section 408, as amended;

(2) A Roth individual retirement account under Internal Revenue Code section 408A, title 26 United States Code section 408A, as amended;

(3) A deemed individual retirement account under Internal Revenue Code section 408(q), title 26 United States Code section 408(q), as amended;

(4) An annuity or mutual fund custodial account under Internal Revenue Code section 403(b), title 26 United States Code section 403(b), as amended;

(5) A pension, profit-sharing, stock bonus, or other retirement plan qualified under Internal Revenue Code section 401(a), title 26 United States Code section 401(a), as amended;

(6) A plan under Internal Revenue Code section 457(b), title 26 United States Code section 457(b), as amended; and

(7) A nonqualified deferred compensation plan under Internal Revenue Code section 409A, title 26 United States Code section 409A, as amended.

(b) Unless the power of attorney otherwise provides, language in a power of attorney granting general authority with respect to retirement plans shall authorize the agent to:

(1) Select the form and timing of payments under a retirement plan and withdraw benefits from a plan;

(2) Make a rollover, including a direct trustee-to-trustee rollover, of benefits from one retirement plan to another;

(3) Establish a retirement plan in the principal's name;

(4) Make contributions to a retirement plan;

(5) Exercise investment powers available under a retirement plan; and

(6) Borrow from, sell assets to, or purchase assets from a retirement plan. [L 2014, c 22, pt of §1][§551E‑11] Exoneration of agent. A provision in a power of attorney relieving an agent of liability for breach of duty shall be binding on the principal and the principal's successors in interest except to the extent the provision:

(1) Relieves the agent of liability for breach of duty committed dishonestly, with an improper motive, or with reckless indifference to the purposes of the power of attorney or the best interest of the principal; or

(2) Was inserted as a result of an abuse of a confidential or fiduciary relationship with the principal. [L 2014, c 22, pt of §1][§551E‑42] Claims and litigation. Unless the power of attorney otherwise provides, language in a power of attorney granting general authority with respect to claims and litigation shall authorize the agent to:

(1) Assert and maintain before a court or administrative agency a claim, claim for relief, cause of action, counterclaim, offset, recoupment, or defense, including an action to recover property or other thing of value, recover damages sustained by the principal, eliminate or modify tax liability, or seek an injunction, specific performance, or other relief;

(2) Bring an action to determine adverse claims or intervene or otherwise participate in litigation;

(3) Seek an attachment, garnishment, order of arrest, or other preliminary, provisional, or intermediate relief and use an available procedure to effect or satisfy a judgment, order, or decree;

(4) Make or accept a tender, offer of judgment, or admission of facts, submit a controversy on an agreed statement of facts, consent to examination, and bind the principal in litigation;

(5) Submit to alternative dispute resolution, settle, and propose or accept a compromise;

(6) Waive the issuance and service of process upon the principal, accept service of process, appear for the principal, designate persons upon which process directed to the principal may be served, execute and file or deliver stipulations on the principal's behalf, verify pleadings, seek appellate review, procure and give surety and indemnity bonds, contract and pay for the preparation and printing of records and briefs, receive, execute, and file or deliver a consent, waiver, release, confession of judgment, satisfaction of judgment, notice, agreement, or other instrument in connection with the prosecution, settlement, or defense of a claim or litigation;

(7) Act for the principal with respect to bankruptcy or insolvency, whether voluntary or involuntary, concerning the principal or some other person, or with respect to a reorganization, receivership, or application for the appointment of a receiver or trustee that affects an interest of the principal in property or other thing of value;

(8) Pay a judgment, award, or order against the principal or a settlement made in connection with a claim or litigation; and

(9) Receive money or another thing of value paid in settlement of or as proceeds of a claim or litigation. [L 2014, c 22, pt of §1][§551E‑33] Construction of authority generally. Except as otherwise provided in the power of attorney, by executing a power of attorney that incorporates by reference a subject described in sections 551E-34 through 551E-47 or that grants to an agent authority to do all acts that a principal could do pursuant to section 551E-31(c), a principal authorizes the agent, with respect to that subject, to:

(1) Demand, receive, and obtain by litigation or otherwise, money or another thing of value to which the principal is, may become, or claims to be entitled, and conserve, invest, disburse, or use anything so received or obtained for the purposes intended;

(2) Contract in any manner with any person, on terms agreeable to the agent, to accomplish a purpose of a transaction and perform, rescind, cancel, terminate, reform, restate, release, or modify the contract or another contract made by or on behalf of the principal;

(3) Execute, acknowledge, seal, deliver, file, or record any instrument or communication the agent considers desirable to accomplish a purpose of a transaction, including creating at any time a schedule listing some or all of the principal's property and attaching it to the power of attorney;

(4) Initiate, participate in, submit to alternative dispute resolution, settle, oppose, or propose or accept a compromise with respect to a claim existing in favor of or against the principal or intervene in litigation relating to the claim;

(5) Seek on the principal's behalf the assistance of a court or other governmental agency to carry out an act authorized in the power of attorney;

(6) Engage, compensate, and discharge an attorney, accountant, discretionary investment manager, expert witness, or other advisor;

(7) Prepare, execute, and file a record, report, or other document to safeguard or promote the principal's interest under a statute or regulation;

(8) Communicate with any representative or employee of a government or governmental subdivision, agency, or instrumentality, on behalf of the principal;

(9) Access communications intended for, and communicate on behalf of the principal, whether by mail, electronic transmission, telephone, or other means; and

(10) Do any lawful act with respect to the subject and all property related to the subject. [L 2014, c 22, pt of §1][§551E‑62] Relation to Electronic Signatures in Global and National Commerce Act. This chapter modifies, limits, and supersedes the federal Electronic Signatures in Global and National Commerce Act, title 15 United States Code section 7001 et seq., but does not modify, limit, or supersede section 101(c) of that Act, title 15 United States Code section 7001(c), or authorize electronic delivery of any of the notices described in section 103(b) of that Act, title 15 United States Code section 7003(b).[§551E‑63] Effect on existing powers of attorney. Except as otherwise provided in this chapter, on [April 17, 2014]:

(1) This chapter shall apply to a power of attorney created before, on, or after [April 17, 2014];

(2) This chapter shall apply to a judicial proceeding concerning a power of attorney commenced on or after [April 17, 2014];

(3) This chapter shall apply to a judicial proceeding concerning a power of attorney commenced before [April 17, 2014], unless the court finds that application of a provision of this chapter would substantially interfere with the effective conduct of the judicial proceeding or prejudice the rights of a party, in which case that provision shall not apply and the superseded law shall apply; and

(4) An act done before [April 17, 2014,] shall not be affected by this chapter. [L 2014, c 22, pt of §1]
Haw. Rev. Stat. § 557A-411 — HI Code / Division 3 / Title 30 / Chapter 557A / Section 557A-411
Minerals, water, and other natural resources.
Status: in_force

(a) Receipts from an interest in minerals or other natural resources shall be allocated as follows:

(1) If received as nominal delay rental or nominal annual rent on a lease, a receipt shall be allocated to income.

(2) If received from a production payment, a receipt shall be allocated to income if and to the extent that the agreement creating the production payment provides a factor for interest or its equivalent. The balance shall be allocated to principal.

(3) If an amount received as a royalty, bonus, or delay rental is more than nominal, ninety per cent shall be allocated to principal and the balance to income.

(4) If an amount is received from a working interest or any other interest not provided for in paragraph (1), (2), or (3), ninety per cent of the net amount received shall be allocated to principal and the balance to income.

(b) An amount received on account of an interest in water that is renewable shall be allocated to income. If the water is not renewable, ninety per cent of the amount shall be allocated to principal and the balance to income.

(c) This chapter applies without regard to whether a decedent or donor was extracting minerals, water, or other natural resources before the interest became subject to the trust.

(d) If a trust owns an interest in minerals, water, or other natural resources on July 1, 2000, the trustee may allocate receipts from the interest as provided in this section or in the manner used by the trustee before July 1, 2000. If the trust acquires an interest in minerals, water, or other natural resources after July 1, 2000, the trustee shall allocate receipts from the interest as provided in this section. [L 2000, c 191, pt of §1]

Revision Note

"July 1, 2000" substituted for "the effective date of this chapter".
Haw. Rev. Stat. § 551A-9 — HI Code / Division 3 / Title 30 / Chapter 551A / Section 551A-9
Contracts.
Status: in_force

The public guardian may make and enter into contracts, and generally do all such things as in its judgment may be necessary, proper, and expedient in accomplishing its duties.
Haw. Rev. Stat. § 554B-18 — HI Code / Division 3 / Title 30 / Chapter 554B / Section 554B-18
Implementation, methods, and forms for creating custodial trusts.
Status: in_force

(a) If a transaction otherwise satisfies applicable law,

(1) The execution and either delivery to the custodial trustee or recording of an instrument in substantially the following form satisfies the requirements of section 554B-2:

TRANSFER UNDER THE HAWAII

UNIFORM CUSTODIAL TRUST ACT

I, ________________(name of transferor or name and representative capacity if a fiduciary), transfer to ________________(name of trustee other than transferor), as custodial trustee for ________________(name of beneficiary) as beneficiary and ________________ as distributee on termination of the trust in absence of direction by the beneficiary under the Hawaii Uniform Custodial Trust Act, the following: (insert a description of the custodial trust property sufficient to identify each asset).

Dated: ______________

_____________________________

(Signature)

(2) The execution and the recording or giving notice of its execution to the beneficiary of an instrument in substantially the following form satisfies the requirements of section 554B-2:

DECLARATION OF TRUST UNDER THE HAWAII

UNIFORM CUSTODIAL TRUST ACT

I, ________________(name of owner or property), declare that henceforth I hold as custodial trustee for ________________(name of beneficiary other than transferor) as beneficiary and ________________ as distributee on termination of the trust in absence of direction by the beneficiary under the Hawaii Uniform Custodial Trust Act, the following: (insert a description of the custodial trust property sufficient to identify each asset).

Dated: ______________

_____________________________

(Signature)

(b) Customary methods of transferring or evidencing ownership of assets may be used to create a custodial trust and include the following:

(1) Registration of a security in the name of a trust company, an adult other than the transferor, or the transferor if the beneficiary is other than the transferor, followed in substance by the words "as custodial trustee for ________________ (name of beneficiary) under the Hawaii Uniform Custodial Trust Act";

(2) Delivery of a certificated security, or a document necessary for the transfer of an uncertificated security, together with any necessary endorsement, to an adult other than the transferor or to a trust company as custodial trustee, accompanied by an instrument in substantially the form prescribed in subsection (a)(1);

(3) Payment of money or transfer of a security held in the name of a broker or a financial institution or its nominee to a broker or financial institution for credit to an account in the name of a trust company, an adult other than the transferor, or the transferor if the beneficiary is other than the transferor, followed in substance by the words: "as custodial trustee for ________________ (name of beneficiary) under the Hawaii Uniform Custodial Trust Act";

(4) Registration of ownership of a life or endowment insurance policy or annuity contract with the issuer in the name of a trust company, an adult other than the transferor, or the transferor if the beneficiary is other than the transferor, followed in substance by the words: "as custodial trustee for ________________ (name of beneficiary) under the Hawaii Uniform Custodial Trust Act";

(5) Delivery of a written assignment to an adult other than the transferor or to a trust company whose name in the assignment is followed in substance by the words: "as custodial trustee for ________________ (name of beneficiary) under the Hawaii Uniform Custodial Trust Act";

(6) Irrevocable exercise of a power of appointment, pursuant to its terms, in favor of a trust company, an adult other than the donee of the power, or the donee who holds the power if the beneficiary is other than the donee, whose name in the appointment is followed in substance by the words: "as custodial trustee for ________________ (name of beneficiary) under the Hawaii Uniform Custodial Trust Act";

(7) Delivery of a written notification or assignment of a right to future payment under a contract to an obligor which transfers the right under the contract to a trust company, an adult other than the transferor, or the transferor if the beneficiary is other than the transferor, whose name in the notification or assignment is followed in substance by the words: "as custodial trustee for ________________ (name of beneficiary) under the Hawaii Uniform Custodial Trust Act";

(8) Execution, delivery, and recordation of a conveyance of an interest in real property in the name of a trust company, an adult other than the transferor, or the transferor if the beneficiary is other than the transferor, followed in substance by the words: "as custodial trustee for ________________ (name of beneficiary) under the Hawaii Uniform Custodial Trust Act";

(9) Issuance of a certificate of title by an agency of a state or of the United States which evidences title to tangible personal property:

(A) Issued in the name of a trust company, an adult other than the transferor, or the transferor if the beneficiary is other than the transferor, followed in substance by the words: "as custodial trustee for ________________ (name of beneficiary) under the Hawaii Uniform Custodial Trust Act"; or

(B) Delivered to a trust company or an adult other than the transferor or endorsed by the transferor to that person, followed in substance by the words: "as custodial trustee for ________________ (name of beneficiary) under the Hawaii Uniform Custodial Trust Act"; or

(10) Execution and delivery of an instrument of gift to a trust company or an adult other than the transferor, followed in substance by the words: "as custodial trustee for ________________ (name of beneficiary) under the Hawaii Uniform Custodial Trust Act". [L 1989, c 76, pt of §1]
Haw. Rev. Stat. § 554B-6 — HI Code / Division 3 / Title 30 / Chapter 554B / Section 554B-6
Multiple beneficiaries, separate custodial trusts, survivorship.
Status: in_force

(a) Beneficial interests in a custodial trust created for multiple beneficiaries are deemed to be separate custodial trusts of equal undivided interests for each beneficiary. Except in transfers for benefit of husband and wife, for whom survivorship is presumed, no right of survivorship exists unless the writing creating the custodial trust specifically provides for survivorship. (Or as is required as to community property.)

(b) Custodial trust property held under this chapter by the same custodial trustee for the benefit of the same beneficiary may be administered as a single custodial trust.

(c) A custodial trustee of property held for more than one beneficiary shall separately account to each beneficiary as provided in sections 554B-7 and 554B-15 for the administration of the custodial trust. [L 1989, c 76, pt of §1]
Haw. Rev. Stat. § 557A-105 — HI Code / Division 3 / Title 30 / Chapter 557A / Section 557A-105
Notice of proposed action.
Status: in_force

(a) A trustee may give a notice of proposed action regarding a matter governed by the chapter as provided in this section. For the purpose of this section, a proposed action includes a course of action and a decision not to take action.

(b) The trustee shall mail notice of the proposed action to all adult beneficiaries who are receiving, or are entitled to receive, income under this trust or to receive a distribution of principal if the trust were terminated at the time the notice is given.

(c) Notice of proposed action need not be given to any person who consents in writing to the proposed action. The consent may be executed at any time before or after the proposed action is taken.

(d) The notice of proposed action shall state that it is given pursuant to this section and shall state all of the following:

(1) The name and mailing address of the trustee;

(2) The name and telephone number of a person who may be contacted for additional information;

(3) A description of the action proposed to be taken and an explanation of the reasons for the action;

(4) The time within which objections to the proposed action can be made, which shall be at least thirty days from the mailing of the notice of proposed action; and

(5) The date on or after which the proposed action may be taken or is effective.

(e) A beneficiary may object to the proposed action by mailing a written objection to the trustee at the address stated in the notice of proposed action within the time period specified in the notice of proposed action.

(f) A trustee is not liable to a beneficiary for an action regarding a matter governed by this chapter if the trustee does not receive a written objection to the proposed action from the beneficiary within the applicable period and the other requirements of this section are satisfied. If no beneficiary entitled to notice objects under this section, the trustee is not liable to any current or future beneficiary with respect to the proposed action.

(g) If the trustee receives a written objection within the applicable period, either the trustee or a beneficiary may petition the court to have the proposed action taken as proposed, taken with modifications, or denied. In the proceeding, a beneficiary objecting to the proposed action has the burden of proving that the trustee's proposed action constitutes an abuse of discretion. A beneficiary who has not objected is not estopped from opposing the proposed action in the proceeding. If the trustee decides not to implement the proposed action, the trustee shall notify the beneficiaries of the decision not to take the action and the reasons for the decision, and the trustee's decision not to implement the proposed action does not itself give rise to liability to any current or future beneficiary. A beneficiary may petition the court to have the action taken, and has the burden of proving that not taking the action is an abuse of discretion. [L 2000, c 191, pt of §1]
Haw. Rev. Stat. § 556-8 — HI Code / Division 3 / Title 30 / Chapter 556 / Section 556-8
Deposit in fiduciary's personal account.
Status: in_force

If a fiduciary makes a deposit in a bank to his personal credit of checks drawn by him upon an account in his own name as fiduciary, or of checks payable to him as fiduciary, or of checks drawn by him upon an account in the name of his principal if he is empowered to draw checks thereon, or of checks payable to his principal and indorsed by him, if he is empowered to endorse such checks, or if he otherwise makes a deposit of funds held by him as fiduciary, the bank receiving such deposit is not bound to inquire whether the fiduciary is committing thereby a breach of his obligation as fiduciary; and the bank is authorized to pay the amount of the deposit or any part thereof upon the personal check of the fiduciary without being liable to the principal, unless the bank receives the deposit or pays the check with actual knowledge that the fiduciary is committing a breach of his obligation as fiduciary in making such deposit or in drawing such check, or with knowledge of such facts that its action in receiving the deposit or paying the check amounts to bad faith.
Haw. Rev. Stat. § 551G-6 — HI Code / Division 3 / Title 30 / Chapter 551G / Section 551G-6
Taking testimony in another state.
Status: in_force

(a) In a guardianship or protective proceeding, in addition to other procedures that may be available, testimony of a witness who is located in another state may be offered by deposition or other means allowable in the State of Hawaii for testimony taken in another state. The court on its own motion may order that the testimony of a witness be taken in another state and may prescribe the manner in which and the terms upon which the testimony is to be taken.

(b) In a guardianship or protective proceeding, a court of the State of Hawaii may permit a witness located in another state to be deposed or to testify by telephone or audiovisual or other electronic means. A court of the State of Hawaii shall cooperate with the court of the other state in designating an appropriate location for the deposition or testimony.

(c) Documentary evidence transmitted from another state to a court of the State of Hawaii by technological means that do not produce an original writing may not be excluded from evidence on an objection based on Rule 1002 of the Hawaii Rules of Evidence. [L 2012, c 236, pt of §1]
Haw. Rev. Stat. § 557A-415 — HI Code / Division 3 / Title 30 / Chapter 557A / Section 557A-415
Asset-backed securities.
Status: in_force

(a) As used in this section, "asset-backed security" means an asset whose value is based upon the right it gives the owner to receive distributions from the proceeds of financial assets that provide collateral for the security. The term includes an asset that gives the owner the right to receive only the interest or other current return from the collateral financial assets or only the proceeds from the capital investment in the collateral financial assets. It does not include an asset to which section 557A-401 or 557A-409 applies.

(b) If a trust receives a payment from the interest or other current return and the capital investment of the collateral financial assets, the trustee shall allocate to income the portion of a payment that the payor identifies as being from the interest or other current return, and shall allocate the balance of the payment to principal.

(c) If a trust receives one or more payments in exchange for the trust's entire interest in an asset-backed security in one accounting period, the trustee shall allocate the payments to principal. If a payment is one of a series of payments that will result in the liquidation of the trust's interest in the security over more than one accounting period, the trustee shall allocate ten per cent of the payment to income and the balance to principal. [L 2000, c 191, pt of §1]
Haw. Rev. Stat. § 551G-12 — HI Code / Division 3 / Title 30 / Chapter 551G / Section 551G-12
Exclusive basis.
Status: in_force

This part provides the exclusive jurisdictional basis for a court of the State of Hawaii to appoint a guardian or issue a protective order for an adult.
Haw. Rev. Stat. § 557A-502 — HI Code / Division 3 / Title 30 / Chapter 557A / Section 557A-502
Disbursements from principal.
Status: in_force

(a) Unless otherwise governed by statutory fees or unless the instrument provides for it, a trustee shall make the following disbursements from principal:

(1) The remaining one-half of the disbursements described in section 557A-501(1) and (2);

(2) All of the trustee's compensation calculated on principal as an acceptance, distribution, or termination fee, and disbursements made to prepare property for sale;

(3) Payments on the principal of a trust debt;

(4) Expenses of a proceeding that concerns primarily principal, including a proceeding to construe the trust or to protect the trust or its property;

(5) Insurance premiums paid on a policy not described in section 557A-501(4) of which the trust is the owner and beneficiary;

(6) Estate, inheritance, and other transfer taxes, including penalties, apportioned to the trust; and

(7) Disbursements related to environmental matters, including reclamation, assessing environmental conditions, remedying and removing environmental contamination, monitoring remedial activities and the release of substances, preventing future releases of substances, collecting amounts from persons liable or potentially liable for the costs of those activities, penalties imposed under environmental laws, rules, or regulations and other payments made to comply with those laws, rules, or regulations, statutory or common law claims by third parties, and defending claims based on environmental matters.

(b) If a principal asset is encumbered with an obligation that requires income from that asset to be paid directly to the creditor, the trustee shall transfer from principal to income an amount equal to the income paid to the creditor in reduction of the obligation's principal balance. [L 2000, c 191, pt of §1]
Haw. Rev. Stat. § 557A-106 — HI Code / Division 3 / Title 30 / Chapter 557A / Section 557A-106
Proceedings regarding trustee's power to adjust.
Status: in_force

In a proceeding with respect to a trustee's exercise or nonexercise of the power to make an adjustment under section 557A-104, the sole remedy shall be to direct, deny, or revise an adjustment between principal and income.
Haw. Rev. Stat. § 556-7 — HI Code / Division 3 / Title 30 / Chapter 556 / Section 556-7
Deposit in name of principal.
Status: in_force

If a check is drawn upon the account of its principal in a bank by a fiduciary who is empowered to draw checks upon the fiduciary's principal's account, the bank is authorized to pay such check without being liable to the principal, unless the bank pays the check with actual knowledge that the fiduciary is committing a breach of the fiduciary's obligation as fiduciary in drawing such check, or with knowledge of such facts that its action in paying the check amounts to bad faith. If, however, such a check is payable to the drawee bank and is delivered to it in payment of or as security for a personal debt of the fiduciary to it, the bank is liable to the principal if the fiduciary in fact commits a breach of the fiduciary's obligation as fiduciary in drawing or delivering the check.
Haw. Rev. Stat. § 553A-9 — HI Code / Division 3 / Title 30 / Chapter 553A / Section 553A-9
Manner of creating custodial property and effecting transfer; designation of initial custodian; control.
Status: in_force

(a) Custodial property is created and a transfer is made whenever:

(1) An uncertificated security or a certificated security in registered form is either:

(A) Registered in the name of the transferor, an adult other than the transferor, or a trust company, followed in substance by the words: "as custodian for ____________________ (name of minor) under the Hawaii Uniform Transfers to Minors Act"; or

(B) Delivered if in certificated form, or any document necessary for the transfer of an uncertificated security is delivered, together with any necessary endorsement to an adult other than the transferor or to a trust company as custodian, accompanied by an instrument in substantially the form set forth in subsection (b);

(2) Money is paid or delivered to a broker or financial institution for credit to an account in the name of the transferor, an adult other than the transferor, or a trust company, followed in substance by the words: "as custodian for ____________________ (name of minor) under the Hawaii Uniform Transfers to Minors Act";

(3) The ownership of a life or endowment insurance policy or annuity contract is either:

(A) Registered with the issuer in the name of the transferor, an adult other than the transferor, or a trust company, followed in substance by the words: "as custodian for ____________________ (name of minor) under the Hawaii Uniform Transfers to Minors Act"; or

(B) Assigned in a writing delivered to an adult other than the transferor or to a trust company whose name in the assignment is followed in substance by the words: "as custodian for ____________________ (name of minor) under the Hawaii Uniform Transfers to Minors Act";

(4) An irrevocable exercise of a power of appointment or an irrevocable present right to future payment under a contract is the subject of a written notification delivered to the payor, issuer, or other obligor that the right is transferred to the transferor, an adult other than the transferor, or a trust company, whose name in the notification is followed in substance by the words: "as custodian for ____________________ (name of minor) under the Hawaii Uniform Transfers to Minors Act";

(5) An interest in real property is recorded in the name of the transferor, an adult other than the transferor, or a trust company, followed in substance by the words: "as custodian for ____________________ (name of minor) under the Hawaii Uniform Transfers to Minors Act";

(6) A certificate of title issued by a department or agency of a state or of the United States which evidences title to tangible personal property is either:

(A) Issued in the name of the transferor, an adult other than the transferor, or a trust company, followed in substance by the words: "as custodian for ____________________ (name of minor) under the Hawaii Uniform Transfers to Minors Act"; or

(B) Delivered to an adult other than the transferor or to a trust company, endorsed to that person followed in substance by the words: "as custodian for ____________________ (name of minor) under the Hawaii Uniform Transfers to Minors Act"; or

(7) An interest in any property not described in paragraphs (1) through (6) is transferred to an adult other than the transferor or to a trust company by a written instrument in substantially the form set forth in subsection (b).

(b) An instrument in the following form satisfies the requirements of paragraphs (1)(B) and (7) of subsection (a):

"TRANSFER UNDER THE HAWAII

UNIFORM TRANSFERS TO MINORS ACT

I, ____________________ (name of transferor or name and representative capacity if a fiduciary) hereby transfer to ____________________ (name of custodian), as custodian for ____________________ (name of minor) under the Hawaii Uniform Transfers to Minors Act, the following: (insert a description of the custodial property sufficient to identify it).

Dated: ____________________

________________________________________

(Signature)

____________________ (name of custodian) acknowledges receipt of the property described above as custodian for the minor named above under the Hawaii Uniform Transfers to Minors Act.

Dated: ____________________

________________________________________"

(Signature of Custodian)

(c) A transferor shall place the custodian in control of the custodial property as soon as practicable. [L 1985, c 91, pt of §1]
Haw. Rev. Stat. § 557A-405 — HI Code / Division 3 / Title 30 / Chapter 557A / Section 557A-405
Rental property.
Status: in_force

To the extent that a trustee accounts for receipts from rental property pursuant to this section, an amount received as rent of real or personal property, including an amount received for cancellation or renewal of a lease, shall be allocated to income. An amount received as a refundable deposit, including a security deposit or a deposit that is to be applied as rent for future periods, shall be added to principal and held subject to the terms of the lease and shall not be available for distribution to a beneficiary until the trustee's contractual obligations have been satisfied with respect to that amount.
Haw. Rev. Stat. § 557A-503 — HI Code / Division 3 / Title 30 / Chapter 557A / Section 557A-503
Transfers from income to principal for depreciation.
Status: in_force

(a) As used in this section, "depreciation" means a reduction in value of a fixed asset having a useful life of more than one year, due to wear, tear, decay, corrosion, or gradual obsolescence.

(b) A trustee may transfer to principal a reasonable amount of the net cash receipts from a principal asset that is subject to depreciation, but a transfer may not be made for depreciation:

(1) Of that portion of real property used or available for use by a beneficiary as a residence or of tangible personal property held or made available for the personal use or enjoyment of a beneficiary;

(2) During the administration of a decedent's estate; or

(3) Under this section if the trustee is accounting under section 557A-403 for the business or activity in which the asset is used.

(c) An amount transferred to principal need not be held as a separate fund. [L 2000, c 191, pt of §1]
Haw. Rev. Stat. § 551A-6 — HI Code / Division 3 / Title 30 / Chapter 551A / Section 551A-6
Rules.
Status: in_force

The public guardian shall make such rules as may be necessary to carry out its duties.
Haw. Rev. Stat. § 554G-5 — HI Code / Division 3 / Title 30 / Chapter 554G / Section 554G-5
Trust instrument.
Status: in_force

(a) A trust instrument shall be irrevocable and shall expressly incorporate the laws of this State governing the validity, construction, and administration of the trust.

(b) The trustee, in its discretion, may terminate any trust if and when its fair market value has declined to the extent that would make it uneconomical, imprudent, or unwise to continue to retain the trust, and shall pay and distribute the trust to the persons entitled to mandatory or discretionary income distributions as the trustee in the trustee's absolute discretion shall decide.

(c) A trust instrument shall not be deemed revocable on account of the inclusion of:

(1) A transferor's power to veto a distribution from the trust;

(2) A power of appointment other than a power to appoint to the transferor, the transferor's creditors, the transferor's estate, or the creditors of the transferor's estate that may be exercised by will or other written instrument of the transferor effective only upon the transferor's death;

(3) The transferor's potential or actual receipt of income, including rights to income retained in the trust instrument;

(4) The transferor's annual receipt of a percentage not to exceed five per cent of the initial value of the trust assets or its value determined from time to time pursuant to the trust instrument or of a fixed amount that on an annual basis does not exceed five per cent of the initial value of the trust assets;

(5) The transferor's potential or actual receipt or use of the trust's principal due to the trustee acting:

(A) In the trustee's discretion;

(B) Pursuant to a provision in the trust instrument that governs the distribution of principal and that does not confer upon the transferor a substantially unfettered right to the receipt or use of the principal; or

(C) At the direction of an advisor described in section 554G-4.5 who is acting:

(i) In the advisor's discretion;

(ii) Pursuant to a provision in the trust instrument that governs the distribution of principal and does not confer upon the transferor a substantially unfettered right to the receipt or use of the principal; or

(iii) Pursuant to the transferor's determination under section 554G-4.5(c) of a dispute, deadlock, or difference of opinion in favor of the advisor;

provided that for purposes of this paragraph, a trustee is presumed to have discretion with respect to the distribution of principal unless that discretion is expressly denied to the trustee by the terms of the trust instrument;

(6) The transferor's right to remove a trustee or advisor and to appoint a new trustee or advisor;

(7) The transferor's potential or actual receipt of income or principal to pay income taxes due on income of the trust if the trust instrument includes a provision allowing or directing the use of trust funds to pay income taxes due, or if the trustee acts in the trustee's discretion to allow payment of income taxes due on the trust income;

(8) A trustee's authority pursuant to discretion, direction, or the transferor's exercise of a testamentary power of appointment to pay all or any part of the transferor's debts outstanding at the time of the transferor's death, the expenses of administering the transferor's estate, or any estate or inheritance tax imposed on or with respect to the transferor's estate;

(9) The transferor's potential or actual receipt of income or principal from a charitable remainder unitrust or charitable remainder annuity trust, as those terms are defined in section 664 of the Internal Revenue Code and any successor provision; and the transferor's right, at any time and from time to time by written instrument delivered to the trustee, to release the transferor's retained interest in the trust, in whole or in part, in favor of one or more charitable organizations with a succeeding beneficial interest in the trust;

(10) The transferor's potential or actual receipt of income or principal from a grantor-retained annuity trust or grantor-retained unitrust, pursuant to title 26 Code of Federal Regulations section 25.2702-3 and any successor provision, or the transferor's receipt each year of a percentage specified in the governing instrument of the initial value of the trust assets or their value determined from time to time pursuant to the governing instrument; provided that the percentage received does not exceed five per cent; or

(11) The transferor's potential or actual use of real property held under a qualified personal residence trust, as described in title 26 Code of Federal Regulations section 25.2702-5(c) and any successor provision, or the transferor's possession and enjoyment of a qualified annuity interest, as described in title 26 Code of Federal Regulations section 25.2702-5(c)(8) and any successor provision thereto.

(d) A trust instrument may provide that the interest of a beneficiary of the trust, including a beneficiary who is the transferor of the trust, may not be transferred, assigned, pledged, or mortgaged, whether voluntarily or involuntarily, before the trustee actually distributes the property or income to the beneficiary. Any provision of this type contained in the trust instrument shall be deemed to be a restriction on the transfer of the transferor's beneficial interest in the trust that is enforceable under applicable nonbankruptcy law within the meaning of title 11 United States Code section 541(c)(2) of the Bankruptcy Code or any successor provision.

(e) If a trustee of a trust existing prior to the enactment of this chapter proposes to make a permitted transfer, but the trust instrument does not contain a power of appointment that conforms to section 554G-5(c)(2), the trustee may deliver an irrevocable written election to have section 554G-5(c)(2) apply to the trust and the nonconforming powers of appointment shall be deemed modified to the extent necessary to conform with section 554G-5(c)(2). The irrevocable written election shall include a description of the original transferor's powers of appointment as modified, and the original transferor's written consent to the modification. Consent of the original transferor to a modification of powers of appointment shall not be considered to be a permitted transfer.

(f) If, in any action brought against a trustee of a trust that results from a permitted transfer, a court declines to apply the law of this State in determining the validity, construction, or administration of the trust or the effect of a spendthrift provision of the trust, the trustee, immediately upon the court's action and without the further order of any court, shall cease to be trustee of the trust and a successor trustee shall succeed as trustee in accordance with the terms of the trust instrument. If the trust instrument does not provide for a successor trustee or does not provide for an advisor or protector with powers to appoint successor trustees, a Hawaii court of competent jurisdiction shall appoint a successor permitted trustee upon the application of any beneficiary of the trust under any terms and conditions that the court determines to be consistent with the purposes of the trust and with this chapter. Upon the removal of a trustee pursuant to this section, the trustee who has been removed shall have no power or authority other than to convey the trust property to the successor trustee. [L 2010, c 182, pt of §2; am L 2011, c 161, §5]
Haw. Rev. Stat. § 557A-413 — HI Code / Division 3 / Title 30 / Chapter 557A / Section 557A-413
Property not productive of income.
Status: in_force

(a) If a marital deduction is allowed for all or part of a trust whose assets consist substantially of property that does not provide the surviving spouse with sufficient income from or use of the trust assets, and if the amounts that the trustee transfers from principal to income under section 557A-104 and distributes to the spouse from principal pursuant to the terms of the trust are insufficient to provide the spouse with the beneficial enjoyment required to obtain the marital deduction, the spouse may require the trustee to make property productive of income, convert property within a reasonable time, or exercise the power conferred by section 557A-104(a). The trustee may decide which action or combination of actions to take.

(b) In all other cases, proceeds from the sale or other disposition of an asset are principal without regard to the amount of income the asset produces during any accounting period. [L 2000, c 191, pt of §1]
Haw. Rev. Stat. § 554-6 — HI Code / Division 3 / Title 30 / Chapter 554 / Section 554-6
Investments.
Status: in_force

Every trustee, other than a trust company acting as such, except insofar as the terms of the instrument or words creating or defining the trust specifically provide otherwise, or unless it is otherwise ordered by the court, which order may be made on an ex parte hearing, shall invest the funds of the trust only in the investments authorized in the cases of trust companies acting as trustees under article 8 of chapter 412, and with respect to all investments and the security for the same every such trustee shall have and be subject to the same rights, powers, privileges, duties, obligations, and responsibilities as would apply to trust companies acting as trustees as to similar investments and the security for the same under article 8 of chapter 412. Nothing in this section shall be deemed to authorize any trustee other than a trust company to issue participation certificates or notes. Any investment made by any such trustee under order by the court made on an ex parte hearing or otherwise may be held during the life of the trust or lesser period unless the terms of the instrument or words creating or defining the trust or the terms of the order of the court or of any subsequent order of the court specifically provide otherwise. [L Sp 1933, c 47, §1; RL 1935, §4715; am L 1941, c 154, §1; RL 1945, §12576; RL 1955, §340-6; HRS §554-6; am L 1976, c 200, pt of §1; am L 1993, c 350, §33]
Haw. Rev. Stat. § 553A-24 — HI Code / Division 3 / Title 30 / Chapter 553A / Section 553A-24
Short title.
Status: in_force

This chapter may be cited as the "Hawaii Uniform Transfers to Minors Act".
Haw. Rev. Stat. § 553A-1 — HI Code / Division 3 / Title 30 / Chapter 553A / Section 553A-1
Definitions.
Status: in_force

As used in this chapter, unless the context otherwise requires:

"Adult" means an individual who has attained the age of twenty-one years.

"Benefit plan" means an employer's plan for the benefit of an employee or partner.

"Broker" means a person lawfully engaged in the business of effecting transactions in securities or commodities for the person's own account or for the account of others.

"Conservator" means a person appointed or qualified by a court to act as general, limited, or temporary guardian of a minor's property or a person legally authorized to perform substantially the same functions.

"Court" means the circuit court of the State.

"Custodial property" means (1) any interest in property transferred to a custodian under this chapter and (2) the income from and proceeds of that interest in property.

"Custodian" means a person so designated under section 553A-9 or a successor or substitute custodian designated under section 553A-18.

"Financial institution" means a bank, trust company, savings institution, or credit union, chartered and supervised under state or federal law.

"Legal representative" means an individual's personal representative or conservator.

"Member of the minor's family" means the minor's parent, stepparent, spouse, grandparent, brother, sister, uncle, or aunt, whether of the whole or half blood or by adoption.

"Minor" means an individual who has not attained the age of twenty-one years.

"Person" means an individual, corporation, organization, or other legal entity.

"Personal representative" means an executor, administrator, successor personal representative, or special administrator of a decedent's estate or a person legally authorized to perform substantially the same functions.

"State" includes any state of the United States, the District of Columbia, the Commonwealth of Puerto Rico, and any territory or possession subject to the legislative authority of the United States.

"Transfer" means a transaction that creates custodial property under section 553A-9.

"Transferor" means a person who makes a transfer under this chapter.

"Trust company" means a financial institution, corporation, or other legal entity, authorized to exercise general trust powers. [L 1985, c 91, pt of §1]
Haw. Rev. Stat. § 551G-18 — HI Code / Division 3 / Title 30 / Chapter 551G / Section 551G-18
Notice of proceeding.
Status: in_force

If a petition for the appointment of a guardian or issuance of a protective order is brought in the State of Hawaii and it was not the respondent's home state on the date the petition was filed, in addition to complying with the notice requirements of the State of Hawaii, notice of the petition shall be given to those persons who would be entitled to notice of the petition if a proceeding were brought in the respondent's home state. The notice shall be given in the same manner as notice is required to be given in the State of Hawaii.
Haw. Rev. Stat. § 551G-3 — HI Code / Division 3 / Title 30 / Chapter 551G / Section 551G-3
International application.
Status: in_force

A court of the State of Hawaii may treat a foreign country as if it were a state for the purpose of applying this part and parts II, III, and IV.
Haw. Rev. Stat. § 557A-406 — HI Code / Division 3 / Title 30 / Chapter 557A / Section 557A-406
Obligation to pay money.
Status: in_force

(a) An amount received as interest, whether determined at a fixed, variable, or floating rate, on an obligation to pay money to the trustee, including an amount received as consideration for prepaying principal, shall be allocated to income without any provision for amortization of premium.

(b) An amount received from the sale, redemption, or other disposition of an obligation to pay money to the trustee more than one year after it is purchased or acquired by the trustee, including an obligation whose purchase price or value when it is acquired is less than its value at maturity, shall be allocated to principal. If the obligation matures within one year after it is purchased or acquired by the trustee, an amount received in excess of its purchase price or its value when acquired by the trust shall be allocated to income.

(c) This section shall not apply to obligations to which sections 557A-409 through 557A-412, 557A-414, and 557A-415 apply. [L 2000, c 191, pt of §1]
Haw. Rev. Stat. § 551-35 — HI Code / Division 3 / Title 30 / Chapter 551 / Section 551-35
Natural guardian and conservator of person alleged to be incapacitated or in need of protective proceedings.
Status: in_force

The father and mother of an incapacitated or protected person are jointly and severally the person's natural guardians and conservators. They shall have equal powers and duties with respect to the person and neither shall have any right superior to that of the other concerning the person's custody or control or any other matter affecting the person; provided that if either parent dies or abandons the family or is incapable for any reason to act as guardian or conservator, or both, the guardianship or conservatorship, or both, devolves or devolve upon the other parent, and that when the parents live apart, the court may award the guardianship or conservatorship to either of them, having special regard to the interests of the incompetent adult person.
Haw. Rev. Stat. § 554B-8 — HI Code / Division 3 / Title 30 / Chapter 554B / Section 554B-8
General powers of custodial trustee.
Status: in_force

(a) A custodial trustee, acting in a fiduciary capacity, has all the rights, powers, and authority over custodial trust property that an unmarried adult owner has over individually owned property, but a custodial trustee may exercise those rights, powers, and authority in a fiduciary capacity only.

(b) This section does not relieve a custodial trustee from liability for breach of section 554B-7. [L 1989, c 76, pt of §1]
Haw. Rev. Stat. § 554B-13 — HI Code / Division 3 / Title 30 / Chapter 554B / Section 554B-13
Declination, resignation, incapacity, death, or removal of custodial trustee; designation of successor custodial trustee.
Status: in_force

(a) A person designated as custodial trustee, before accepting the custodial trust property, may decline to serve by notifying the person who made the designation, the transferor, or the transferor's legal representative. If the event giving rise to a transfer has not occurred, the substitute custodial trustee designated under section 554B-3 becomes the custodial trustee, and, if a substitute custodial trustee has not been designated, the person who made the designation may designate a substitute custodial trustee under section 554B-3. In other cases, the transferor or the transferor's legal representative may designate a substitute custodial trustee.

(b) A custodial trustee who has accepted the custodial trust property may resign by:

(1) Delivering written notice to the beneficiary and, if the beneficiary is incapacitated, to the beneficiary's conservator, if any, and to the successor custodial trustee, if any; and

(2) Transferring, recording, or registering the custodial trust property in the name of and delivering the records to the successor custodial trustee identified under subsection (c).

(c) If a custodial trustee or successor custodial trustee is ineligible, resigns, dies, or becomes incapacitated, the successor designated under section 554B-2 or 554B-3 becomes custodial trustee. If there is no effective provision for a successor, the beneficiary, if not incapacitated, may designate a successor custodial trustee. If the beneficiary is incapacitated, or fails to act within ninety days after the ineligibility, resignation, death, or incapacity of the custodial trustee, the beneficiary's conservator becomes successor custodial trustee; and, if the beneficiary does not have a conservator or the conservator declines to act, the resigning custodial trustee may designate a successor custodial trustee.

(d) If a successor custodial trustee is not designated by the foregoing procedure, the transferor, the legal representative of the transferor or of the custodial trustee, an adult member of the beneficiary's family, the guardian of the beneficiary, a person interested in the custodial trust property or as appropriate, another person interested in the welfare of the beneficiary may petition the court to designate a successor custodial trustee.

(e) A custodial trustee who declines to serve or resigns, or the legal representative of a deceased or incapacitated custodial trustee, as soon as practicable, shall put the custodial trust property and records in the possession and control of the successor custodial trustee. A successor custodial trustee may enforce the obligation to deliver custodial trust property and records, and becomes responsible for each item as received.

(f) A beneficiary, the beneficiary's conservator, an adult member of the beneficiary's family, the beneficiary's guardian, a person interested in the custodial trust property or as appropriate, or another person interested in the welfare of the beneficiary, may petition the court to remove the custodial trustee for cause and designate a successor custodial trustee, to require the custodial trustee to give bond, or for other appropriate relief. [L 1989, c 76, pt of §1; am L 2004, c 161, §23]
Haw. Rev. Stat. § 553A-10 — HI Code / Division 3 / Title 30 / Chapter 553A / Section 553A-10
Single custodianship.
Status: in_force

A transfer may be made only for one minor, and only one person may be the custodian. All custodial property held under this chapter by the same custodian for the benefit of the same minor constitutes a single custodianship.
Haw. Rev. Stat. § 553A-11 — HI Code / Division 3 / Title 30 / Chapter 553A / Section 553A-11
Validity and effect of transfer.
Status: in_force

(a) The validity of a transfer made in a manner prescribed in this chapter is not affected by:

(1) Failure of the transferor to comply with section 553A-9(c) concerning possession and control;

(2) Designation of an ineligible custodian, except designation of the transferor in the case of property for which the transferor is ineligible to serve as custodian under section 553A-9(a); or

(3) Death or incapacity of a person nominated under section 553A-3 or designated under section 553A-9 as custodian or the renunciation of the office by that person.

(b) A transfer made pursuant to section 553A-9 is irrevocable, and the custodial property is indefeasibly vested in the minor, but the custodian has all the rights, powers, duties, and authority provided in this chapter, and neither the minor nor the minor's legal representative has any right, power, duty, or authority with respect to the custodial property except as provided in this chapter.

(c) By making a transfer, the transferor incorporates in the disposition all the provisions of this chapter and grants to the custodian, and to any third person dealing with a person designated as custodian, the respective powers, rights, and immunities provided in this chapter. [L 1985, c 91, pt of §1]
Haw. Rev. Stat. § 551A-8 — HI Code / Division 3 / Title 30 / Chapter 551A / Section 551A-8
Funding.
Status: in_force

Funding for the office of the public guardian shall be included in the budget of the judiciary.
Haw. Rev. Stat. § 551-22 — HI Code / Division 3 / Title 30 / Chapter 551 / Section 551-22
Estates less than $100.
Status: in_force

When the whole estate of a person over the age of eighteen for whom a conservator could be appointed does not exceed the value of $100, the court, in its discretion, without the appointment of a conservator or the giving of bond, may authorize the deposit thereof in a depository authorized to receive fiduciary funds in the name of a suitable person designated by the court, or if the assets do not consist of money, authorize the delivery thereof to a suitable person designated by the court. The person receiving such money or other assets shall hold and dispose of the same in such manner as the court shall direct.
Haw. Rev. Stat. § 554B-20 — HI Code / Division 3 / Title 30 / Chapter 554B / Section 554B-20
Uniformity of application and construction.
Status: in_force

This chapter shall be applied and construed to effectuate its general purpose to make uniform the law with respect to the subject of this chapter among states enacting it.
Haw. Rev. Stat. § 551E-4 — HI Code / Division 3 / Title 30 / Chapter 551E / Section 551E-4
Nomination of conservator or guardian; relation of agent to court-appointed fiduciary.
Status: in_force

(a) In a power of attorney, a principal may nominate a conservator or guardian of the principal's estate, or conservator or guardian of the principal's person for consideration by the court if protective proceedings for the principal's estate or person are begun after the principal executes the power of attorney. Except for good cause shown or disqualification, the court shall make its appointment in accordance with the principal's most recent nomination.

(b) If, after a principal executes a power of attorney, a court appoints a guardian of the principal's estate or other fiduciary charged with the management of some or all of the principal's property, the agent shall be accountable to the fiduciary as well as to the principal. The power of attorney shall not be terminated and the agent's authority shall continue unless limited, suspended, or terminated by the court. [L 2014, c 22, pt of §1]
Haw. Rev. Stat. § 557A-409 — HI Code / Division 3 / Title 30 / Chapter 557A / Section 557A-409
Deferred compensation, annuities, and similar payments.
Status: in_force

(a) This section shall apply to payments that a trustee may receive over a fixed number of years or during the life of one or more individuals because of services rendered or property transferred to the payor in exchange for future payments. The payments include those made in money or property from the payor's general assets or from a separate fund created by the payor, including a private or commercial annuity, an individual retirement account, and a pension, profit sharing, stock bonus, or stock ownership plan. This section shall not apply to payments to which section 557A-410 applies.

(b) To the extent that a payment is characterized as interest or a dividend or a payment made in lieu of interest or a dividend, it shall be allocated to income. The balance of the payment and any other payment received in the same accounting period that is not characterized as interest, a dividend, or an equivalent payment, shall be allocated to principal.

(c) If no part of a payment is characterized as interest, a dividend, or an equivalent payment, and all or part of the payment is required to be made, a trustee shall allocate to income ten per cent of the part that is required to be made during the accounting period and the balance to principal. If no part of a payment is required to be made or the payment received is the entire amount to which the trustee is entitled, the entire payment shall be allocated to principal.

For purposes of this subsection, a payment shall not be "required to be made" to the extent that it is made because the trustee exercises a right of withdrawal.

(d) If, to obtain an estate tax marital deduction for a trust, a trustee shall allocate more of a payment to income than provided for by this section, the trustee shall allocate to income the additional amount necessary to obtain the marital deduction. [L 2000, c 191, pt of §1]
Haw. Rev. Stat. § 554G-8 — HI Code / Division 3 / Title 30 / Chapter 554G / Section 554G-8
Avoidance of permitted transfers in trust.
Status: in_force

(a) No claim, including an action to enforce a judgment entered by a court or other body having adjudicative authority, by a creditor against property that is subject to a permitted transfer that arises after a permitted transfer and no claim by a creditor to avoid a permitted transfer shall be brought at law or in equity for attachment or other provisional remedy unless the permitted transfer was made with actual intent to defraud, hinder, or delay the creditor.

(b) An allowable claim under subsection (a) shall be extinguished unless:

(1) The creditor's claim arose before the permitted transfer was made and the action is brought within the limitations of section 651C-9 on the latter of the date of the permitted transfer or July 1, 2010; or

(2) Notwithstanding the provisions of section 651C‑9, the creditor's claim arose concurrent with or subsequent to the permitted transfer, and the action is brought within two years after the permitted transfer is made.

(c) In any action described in subsection (a), the burden to prove intent to defraud, hinder, or delay by clear and convincing evidence shall be upon the creditor.

(d) For purposes of this section, a permitted transfer that is made by a transferor who is a trustee shall be deemed to have been made as of the date that the property that is the subject of the permitted transfer was originally transferred via a trust instrument that meets the requirements of this chapter to the transferor or the transferor's predecessor in interest.

(e) Notwithstanding any law to the contrary, a creditor or other person who purports to have a claim against property that is the subject of a permitted transfer shall have only the rights, with respect to a permitted transfer, as are provided in this section and sections 554G-9 and 554G-10.

(f) No creditor or any other person shall have any claim or cause of action, including an action to enforce a judgment entered by a court or other body having adjudicative authority, against a trustee or advisor described in section 554G-4.5(a) or against any person involved in drafting, preparing, executing, or funding a trust or in counseling the parties to a trust that is the subject of a permitted transfer if, as of the date the action is brought, an action with respect to the permitted transfer would be barred under this section. [L 2010, c 182, pt of §2; am L 2011, c 161, §8]
Haw. Rev. Stat. § 554B-21 — HI Code / Division 3 / Title 30 / Chapter 554B / Section 554B-21
Short title.
Status: in_force

This chapter may be cited as the Hawaii Uniform Custodial Trust Act.
Haw. Rev. Stat. § 557A-102 — HI Code / Division 3 / Title 30 / Chapter 557A / Section 557A-102
Definitions.
Status: in_force

As used in this chapter, unless the context otherwise requires:

"Accounting period" means a calendar year unless another twelve-month period is selected by a fiduciary. The term includes a portion of a calendar year or other twelve-month period that begins when an income interest begins or ends when an income interest ends.

"Beneficiary" includes, in the case of a decedent's estate, an heir and devisee and, in the case of a trust, an income beneficiary and a remainder beneficiary.

"Fiduciary" means a personal representative or a trustee. The term includes an executor, administrator, successor personal representative, special administrator, and a person performing substantially the same function.

"Income" means money or property a fiduciary receives as the current return from a principal asset. The term includes a portion of the receipts from a sale, exchange, or liquidation of a principal asset, to the extent provided in article 4.

"Income beneficiary" means a person to whom a trust's net income is or may be payable.

"Income interest" means an income beneficiary's right to receive all or part of the net income, whether the terms of the trust require it to be distributed or authorize it to be distributed in the trustee's discretion.

"Mandatory income interest" means an income beneficiary's right to receive net income that the terms of the trust require the fiduciary to distribute.

"Net income" means the total receipts allocated to income during an accounting period minus the disbursements made from income during the period. Receipts and disbursements include items transferred to or from income during the period under this chapter.

"Person" means an individual, corporation, business trust, estate, trust, partnership, limited liability company, association, joint venture, or any other legal or commercial entity. The term does not include a government or governmental subdivision, agency, or instrumentality.

"Principal" means property held in trust for distribution to a remainder beneficiary when the trust terminates.

"Remainder beneficiary" means a person, including another trust, entitled to receive principal when an income interest ends.

"Terms of a trust" means the manifestation of the intent of a settlor or decedent with respect to the trust, expressed in a manner that admits of its proof in a judicial proceeding, whether by written or spoken words or by conduct.

"Trustee" includes an original, additional, or successor trustee, whether or not appointed or confirmed by a court. [L 2000, c 191, pt of §1]
Haw. Rev. Stat. § 551A-2 — HI Code / Division 3 / Title 30 / Chapter 551A / Section 551A-2
Powers and duties.
Status: in_force

(a) The public guardian shall serve as guardian, limited guardian, testamentary guardian, emergency guardian, or temporary substitute guardian of an incapacitated person when so appointed by the family court or by the circuit court under chapter 560. Notwithstanding section 560:5-304, the public guardian may not file a petition for the public guardian's own appointment. Petitions for public guardianship may be filed by any person, agency, or facility responsible for the support or care of individuals who:

(1) Are not able to understand or adequately participate in decisions concerning their care; and

(2) Have no relatives or friends willing and able to act as a guardian.

(b) The public guardian shall have the same powers and duties as a private guardian. In addition, if there is no conservatorship in effect for a ward, the court may authorize the public guardian to:

(1) Request and obtain copies of any and all of the ward's financial information, records, and documents, including but not limited to account statements, deposit and withdrawal records, and canceled or returned checks, from any and all savings accounts, checking accounts, safe deposit box accounts, retirement or pension accounts, investment accounts, insurance accounts, annuity accounts, credit card accounts, and all other accounts held in the name of the ward; and

(2) Transact business or take necessary action as to the accounts in paragraph (1);

provided that if a conservatorship comes into effect for the ward, the public guardian shall not have and shall not exercise the powers in paragraphs (1) and (2) that have been granted to the conservator, for the duration of the conservatorship.

(c) The public guardian shall assist the court, as the court may request or direct, in proceedings for the appointment of a guardian and in the supervision of persons, corporations, or agencies which have been appointed as guardians.

(d) The public guardian shall advise and assist persons, corporations, and agencies which are seeking appointment as a guardian for an incapacitated person. The public guardian shall also provide advice, information, and guidance to the persons, corporations, or agencies who have been appointed as guardian to assist them in the discharge of their duties.

(e) The public guardian may offer guidance and counsel, without court appointment as guardian, to those persons who request such assistance or to those on whose behalf it is requested for the purpose of encouraging maximum self-reliance and independence of such persons and avoiding the need for appointment of a guardian.

(f) The public guardian shall develop programs of public education on guardianship and alternatives to guardianship and encourage the development of private guardians able and willing to serve as guardian. [L 1984, c 223, pt of §1; am L 1986, c 158, §1; am L 2004, c 161, §20; am L 2005, c 22, §36; am L 2015, c 141, §1]
Haw. Rev. Stat. § 551A-4 — HI Code / Division 3 / Title 30 / Chapter 551A / Section 551A-4
Court costs.
Status: in_force

In any proceeding for appointment of a public guardian, the court may waive any court costs or filing fees.
Haw. Rev. Stat. § 558-8 — HI Code / Division 3 / Title 30 / Chapter 558 / Section 558-8
Disclosure of beneficiaries.
Status: in_force

(a) Any trust created hereunder shall be invalid unless the recorded conveyance document transferring title to the trustee discloses the name and pro rata interest of each beneficiary of such trust.

(b) Upon service of a complaint, or similar pleading, in federal or state court to which the trustee is required to respond, the trustee shall disclose in the response the name of every beneficiary with a present interest in trust property which is a subject of the action. This subsection shall be liberally construed to require identification of the actual parties to the controversy.

(c) Upon receipt of a notice of violation of any ordinance, rule, regulation, or law relating to real property held in trust, the trustee shall disclose to the State, political subdivision, or agency giving notice or which is primarily responsible for enforcement of such ordinance, rule, regulation, or law, the identity of every beneficiary who has an interest in the trust property. This subsection shall be liberally construed to require identification of the actual parties who are being notified of the violation.

(d) As part of any contract relating to the ownership or use of real property which is the subject of a land trust and is entered into by and between the State or any local governmental unit or any agency of either and a trustee under a land trust, the trustee shall disclose the identity of every beneficiary of the land trust. This subsection shall be liberally construed to require identification of the actual parties benefiting from a transaction with a governmental unit or agency.

(e) Whenever any trustee or beneficiary of a land trust applies or supports an application to the State or any local governmental unit or any agency of either for any benefit, authorization, license, land use or permit relating to the land which is the subject of the land trust, such application shall identify every beneficiary of the land trust. This subsection shall be liberally construed to require identification of the actual parties benefiting from the actions of governmental units and agencies.

(f) A trustee who discloses the identity of a beneficiary pursuant to law shall not be liable in any civil action as a result of the disclosure. [L 1978, c 151, pt of §1; am L 1982, c 127, §2]
Haw. Rev. Stat. § 553A-21 — HI Code / Division 3 / Title 30 / Chapter 553A / Section 553A-21
Applicability.
Status: in_force

This chapter applies to a transfer within the scope of section 553A-2 made after July 1, 1985 if:

(1) The transfer purports to have been made under the Hawaii Uniform Gifts to Minors Act; or

(2) The instrument by which the transfer purports to have been made uses in substance the designation "as custodian under the Uniform Gifts to Minors Act" or "as custodian under the Uniform Transfers to Minors Act" of any other state, and the application of this chapter is necessary to validate the transfer. [L 1985, c 91, pt of §1]

Revision Note

"July 1, 1985" substituted for "its effective date".
Haw. Rev. Stat. § 556-3 — HI Code / Division 3 / Title 30 / Chapter 556 / Section 556-3
Transfer of negotiable instrument by fiduciary.
Status: in_force

If any negotiable instrument payable or indorsed to a fiduciary as such is indorsed by the fiduciary, or if any negotiable instrument payable or indorsed to the fiduciary's principal is indorsed by a fiduciary empowered to indorse such instrument on behalf of the fiduciary's principal, the indorsee is not bound to inquire whether the fiduciary is committing a breach of the fiduciary's obligation as fiduciary in indorsing or delivering the instrument and is not chargeable with notice that the fiduciary is committing a breach of the fiduciary's obligation as fiduciary unless the indorsee takes the instrument with actual knowledge of such breach or with knowledge of such facts that the indorsee's action in taking the instrument amounts to bad faith. If, however, such instrument is transferred by the fiduciary in payment of or as security for a personal debt of the fiduciary to the actual knowledge of the creditor, or is transferred in any transaction known by the transferee to be for the personal benefit of the fiduciary, the creditor or other transferee is liable to the principal if the fiduciary in fact commits a breach of the fiduciary's obligation as fiduciary in transferring the instrument.
Haw. Rev. Stat. § 554B-4 — HI Code / Division 3 / Title 30 / Chapter 554B / Section 554B-4
Form and effect of receipt and acceptance by custodial trustee, jurisdiction.
Status: in_force

(a) The obligations of a custodial trustee, including the obligation to follow directions of the beneficiary pursuant to section 554B-7, arise under this chapter upon the custodial trustee's acceptance, express or implied, of the custodial trust property.

(b) The custodial trustee's acceptance may be evidenced by a writing stating in substance:

CUSTODIAL TRUSTEE'S RECEIPT AND ACCEPTANCE

I, _____________________________ (name of custodial trustee) acknowledge receipt of the custodial trust property described below or in the attached instrument and accept the custodial trust as custodial trustee for ____________________________ (name of beneficiary) under the Hawaii Uniform Custodial Trust Act. I undertake to administer and distribute the custodial trust property pursuant to the Hawaii Uniform Custodial Trust Act. My obligations as custodial trustee are subject to the directions of the beneficiary unless the beneficiary is designated as, is, or becomes incapacitated. The custodial trust property consists of ________________________.

Dated:__________________

______________________________________

(Signature of Custodial Trustee)

(c) Upon acceptance of the custodial trust property, a person designated as custodial trustee under this chapter is subject to personal jurisdiction of the courts of this State with respect to any matter relating to the custodial trust. [L 1989, c 76, pt of §1]
Haw. Rev. Stat. § 557A-302 — HI Code / Division 3 / Title 30 / Chapter 557A / Section 557A-302
Apportionment of receipts and disbursements when decedent dies or income interest begins.
Status: in_force

(a) An income receipt or disbursement other than one to which section 557A-201(1) applies shall be allocated to principal if its due date occurs before a decedent dies in the case of an estate or before an income interest begins in the case of a trust or successive income interest.

(b) An income receipt or disbursement shall be allocated to income if its due date occurs on or after the date on which a decedent dies or an income interest begins and it is a periodic due date. An income receipt or disbursement shall be treated as accruing from day to day if its due date is not periodic or it has no due date. The portion of the receipt or disbursement accruing before the date on which a decedent dies or an income interest begins shall be allocated to principal and the balance shall be allocated to income.

(c) An item of income or an obligation is due on the date on which the payor is required to make a payment. If there is no stated payment date, there is no due date for the purposes of this chapter. Distributions to shareholders or other owners from an entity to which section 557A-401 applies are deemed to be due on the date fixed by the entity for determining who is entitled to receive the distribution or, if no date is fixed, on the declaration date for the distribution. A due date is periodic for receipts or disbursements that shall be paid at regular intervals under a lease or an obligation to pay interest or if an entity customarily makes distributions at regular intervals. [L 2000, c 191, pt of §1]
Haw. Rev. Stat. § 554G-10 — HI Code / Division 3 / Title 30 / Chapter 554G / Section 554G-10
Effect of avoidance of permitted transfers.
Status: in_force

(a) A creditor may avoid a permitted transfer pursuant to section554G-8 only to the extent necessary to satisfy the transferor's debt to the creditor at whose instance the transfer has been avoided, together with costs including attorney's fees as allowed by a court.

(b) In an action pursuant to subsection (a) to avoid a permitted transfer:

(1) If a court finds that a trustee has not acted with intent to defraud, hinder, or delay the creditor in accepting or administering the property that is the subject of the permitted transfer:

(A) The trustee shall have a first and paramount lien against the property that is the subject of the permitted transfer in an amount equal to the entire cost including attorney's fees properly incurred by the trustee in the defense of the action or proceedings to avoid the permitted transfer;

(B) The permitted transfer shall be avoided, subject to payment of proper fees, costs, preexisting rights, claims, and interests of the trustee and of any predecessor trustee who has not acted with intent to defraud, hinder, or delay the creditor; and

(C) For purposes of this paragraph, it shall be presumed that the trustee did not act with intent to defraud, hinder, or delay the creditor merely by accepting the property; and

(2) If the court is satisfied that a beneficiary of the trust has not acted with intent to defraud, hinder, or delay the creditor, the permitted transfer shall be avoided subject to the beneficiary's right to retain any distribution made prior to the creditor's commencement of an action to avoid the permitted transfer; provided that for purposes of this paragraph, it shall be presumed that a beneficiary did not act with intent to defraud, hinder, or delay the creditor merely by creating the trust or by accepting a distribution made in accordance with the terms of the trust.

(c) A creditor who brings an action pursuant to section554G-8 to avoid a permitted trust shall have the burden of proving by clear and convincing evidence that a trustee or beneficiary acted with intent to defraud, hinder, or delay the creditor; provided that in the case of a beneficiary who is also the transferor, the burden on the creditor shall be to prove by a preponderance of the evidence that the transferor-beneficiary acted with intent to defraud, hinder, or delay the creditor.

(d) For purposes of this chapter, attachment, garnishment, sequestration, or other legal or equitable process shall be permitted only where permitted by the express terms of this chapter.

(e) Notwithstanding any other provision of this chapter, a creditor shall have no right against the interest of a beneficiary to a trust based solely on the beneficiary's right to authorize or direct the trustee to use all or part of the trust property to pay:

(1) Estate or inheritance taxes imposed upon or due to the beneficiary's estate;

(2) Debts of the beneficiary's estate; or

(3) Expenses of administering the beneficiary's estate,

unless the beneficiary actually directs the payment of taxes, debts, or expenses and then only to the extent of that direction.

(f) Where spouses make a permitted transfer of property and, immediately before the permitted transfer, the property, any part of the permitted property, or any accumulation to the permitted property was, pursuant to applicable law, owned by them as tenants by the entirety, then notwithstanding the permitted transfer and except where the provisions of the trust instrument expressly provide to the contrary, the property and any accumulation to the property, while held in trust during the lifetime of both spouses, shall be treated as though it were held in tenancy by the entirety and shall be subject to all applicable law; provided that in every other respect, the property shall be subject to the terms of the trust instrument.

In any action concerning whether a creditor of either or both spouses may recover the debt from the trust, upon avoidance of the permitted transfer the sole remedy available to the creditor with respect to trust property treated as though it were held in tenancy by the entirety shall be an order directing the trustee to transfer the property to both spouses as tenants by the entirety.

(g) Subject to all of the provisions of this section and except as otherwise provided in subsection (f), upon avoidance of a qualified disposition to the extent permitted under subsection (a), the sole remedy available to the creditor shall be an order directing the trustee to transfer to the transferor the amount necessary to satisfy the transferor's debt to the creditor at whose instance the disposition has been avoided. [L 2010, c 182, pt of §2; am L 2011, c 161, §10]
Haw. Rev. Stat. § 553A-4 — HI Code / Division 3 / Title 30 / Chapter 553A / Section 553A-4
Transfer by gift or exercise of power of appointment.
Status: in_force

A person may make a transfer by irrevocable gift to, or the irrevocable exercise of a power of appointment in favor of, a custodian for the benefit of a minor pursuant to section 553A-9.
Haw. Rev. Stat. § 557A-505 — HI Code / Division 3 / Title 30 / Chapter 557A / Section 557A-505
Income taxes.
Status: in_force

(a) A tax required to be paid by a trustee based on receipts allocated to income shall be paid from income.

(b) A tax required to be paid by a trustee based on receipts allocated to principal shall be paid from principal, even if the tax is called an income tax by the taxing authority.

(c) A tax required to be paid by a trustee on the trust's share of an entity's taxable income shall be paid proportionately from:

(1) Income to the extent that receipts from the entity are allocated to income; and

(2) Principal to the extent that:

(A) Receipts from the entity are allocated to principal; and

(B) The trust's share of the entity's taxable income exceeds the total receipts in paragraphs (1) and (2)(A).

(d) For purposes of this section, receipts allocated to principal or income shall be reduced by the amount distributed to a beneficiary from principal or income for which the trust receives a deduction in calculating the tax. [L 2000, c 191, pt of §1]
Haw. Rev. Stat. § 551G-19 — HI Code / Division 3 / Title 30 / Chapter 551G / Section 551G-19
Proceedings in more than one state.
Status: in_force

Except for a petition for the appointment of a guardian in an emergency or issuance of a protective order limited to property located in the State of Hawaii under section 551G-14(a)(1) or (a)(2), if a petition for the appointment of a guardian or issuance of a protective order is filed in the State of Hawaii and in another state and neither petition has been dismissed or withdrawn, the following rules shall apply:

(1) If the court of the State of Hawaii has jurisdiction under section 551G-13, it may proceed with the case unless a court in another state acquires jurisdiction under provisions similar to section 551G-13 before the appointment or issuance of the order; and

(2) If the court of the State of Hawaii does not have jurisdiction under section 551G-13, whether at the time the petition is filed or at any time before the appointment or issuance of the order, the court shall stay the proceeding and communicate with the court in the other state. If the court in the other state has jurisdiction, the court of the State of Hawaii shall dismiss the petition unless the court in the other state determines that the court of the State of Hawaii is a more appropriate forum. [L 2012, c 236, pt of §1]
Haw. Rev. Stat. § 554G-4.5 — HI Code / Division 3 / Title 30 / Chapter 554G / Section 554G-4.5
Advisors.
Status: in_force

(a) A transferor may appoint, through the trust instrument, one or more advisors or protectors, including:

(1) Advisors who have authority under the terms of the trust to remove and appoint trustees, advisors, trust committee members, or protectors;

(2) Advisors who have authority under the terms of the trust to direct, consent to, or disapprove of distributions from the trust; and

(3) Advisors, including the transferor beneficiary of the trust, who serve as investment advisors to the trust.

(b) While a trustee may appoint an advisor, the administrative and non-administrative authority over the trust shall remain with the trustee.

(c) Notwithstanding subsection (b), whenever there is a dispute, deadlock, or difference of opinion between a trustee and an advisor, the transferor may direct that the determination of the advisor shall be binding upon the trustee; provided that the trustee shall bear no liability or accountability for any act or transaction entered into or omitted as a result of the enforcement of the advisor's determination. The trustee's administrative and non-administrative fiduciary duty to the beneficiaries shall be waived as to the specific act or transaction entered into or omitted as a result of the enforcement of the advisor's determination; provided that:

(1) The trustee dissents in writing:

(A) Before the act or transaction is completed;

(B) To a failure to act; or

(C) In a reasonably timely manner to enter into a transaction; or

(2) If the advisor is appointed by the transferor under the terms of the trust and section 554D-808(c) applies to the trust and the advisor, the trustee is not required to dissent in writing for the waiver of the trustee's administrative and non-administrative fiduciary duties to the beneficiaries to take effect. [L 2011, c 161, §2; am L 2014, c 59, §2; am L 2021, c 32, §4]
Haw. Rev. Stat. § 557A-407 — HI Code / Division 3 / Title 30 / Chapter 557A / Section 557A-407
Insurance policies and similar contracts.
Status: in_force

(a) Except as provided in subsection (b), proceeds from a life insurance policy or other contract whose beneficiary is the trust or its trustee, including a contract that insures the trust or its trustee against loss for the damage or destruction of, or loss of title to, a principal asset shall be allocated to principal. The trustee shall allocate dividends on an insurance policy to income if the premiums on the policy are paid from income, and to principal if the premiums are paid from principal. This section shall not apply to a contract to which section 557A-409 applies.

(b) Insurance proceeds shall be allocated to income if they are from a policy that insures the trustee against the loss of occupancy or other use by an income beneficiary, the loss of income, or, subject to section 557A-403, the loss of profits from a business. [L 2000, c 191, pt of §1]
Haw. Rev. Stat. § 553A-15 — HI Code / Division 3 / Title 30 / Chapter 553A / Section 553A-15
Custodian's expenses, compensation, and bond.
Status: in_force

(a) A custodian is entitled to reimbursement from custodial property for reasonable expenses incurred in the performance of the custodian's duties.

(b) Except for one who is a transferor under section 553A-4, a custodian has a noncumulative election during each calendar year to charge reasonable compensation for services performed during that year.

(c) Except as provided in section 553A-18(f), a custodian need not give a bond. [L 1985, c 91, pt of §1]
Haw. Rev. Stat. § 558-1 — HI Code / Division 3 / Title 30 / Chapter 558 / Section 558-1
Title.
Status: in_force

This chapter shall be known and may be cited as the Land Trust Act.
Haw. Rev. Stat. § 556-4 — HI Code / Division 3 / Title 30 / Chapter 556 / Section 556-4
Check drawn by fiduciary payable to third person.
Status: in_force

If a check or other bill of exchange is drawn by a fiduciary as such, or in the name of the fiduciary's principal by a fiduciary empowered to draw such instrument in the name of the fiduciary's principal, the payee is not bound to inquire whether the fiduciary is committing a breach of the fiduciary's obligation as fiduciary in drawing or delivering the instrument, and is not chargeable with notice that the fiduciary is committing a breach of the fiduciary's obligation as fiduciary unless the payee takes the instrument with actual knowledge of the breach or with knowledge of such facts that the payee's action in taking the instrument amounts to bad faith. If, however, the instrument is payable to a personal creditor of the fiduciary and delivered to the creditor in payment of or as security for a personal debt of the fiduciary to the actual knowledge of the creditor, or is drawn and delivered in any transaction known by the payee to be for the personal benefit of the fiduciary, the creditor or other payee is liable to the principal if the fiduciary in fact commits a breach of the fiduciary's obligation as fiduciary in drawing or delivering the instrument.
Haw. Rev. Stat. § 551G-22 — HI Code / Division 3 / Title 30 / Chapter 551G / Section 551G-22
Accepting guardianship or conservatorship transferred from another state.
Status: in_force

(a) To confirm transfer of a guardianship or conservatorship transferred to the State of Hawaii under provisions similar to section 551G-21, the guardian or conservator shall petition the court of the State of Hawaii to accept the guardianship or conservatorship. The petition shall include a certified copy of the other state's provisional order of transfer.

(b) Notice of a petition under subsection (a) shall be given to those persons that would be entitled to notice if the petition were a petition for the appointment of a guardian or issuance of a protective order in the transferring state and the State of Hawaii. The notice shall be given in the same manner as notice is required to be given in the State of Hawaii.

(c) On the court's own motion or on request of the guardian or conservator, the incapacitated or protected person, or other person required to be notified of the proceeding, the court shall hold a hearing on a petition filed pursuant to subsection (a).

(d) The court shall issue an order provisionally granting a petition filed under subsection (a) unless:

(1) An objection is made and the objector establishes that transfer of the proceeding would be contrary to the interests of the incapacitated or protected person; or

(2) The guardian or conservator is ineligible for appointment in the State of Hawaii.

(e) The court shall issue a final order accepting the proceeding and appointing the guardian or conservator as guardian or conservator in the State of Hawaii upon its receipt of a final order, issued under provisions similar to section 551G-21, from the court where the proceeding is being transferred from.

(f) No later than ninety days after issuance of a final order accepting transfer of a guardianship or conservatorship, the court shall determine whether the guardianship or conservatorship needs to be modified to conform to the law of the State of Hawaii.

(g) In granting a petition under this section, the court shall recognize a guardianship or conservatorship order from the other state, including the determination of the incapacitated or protected person's incapacity and the appointment of the guardian or conservator.

(h) The denial by a court of the State of Hawaii of a petition to accept a guardianship or conservatorship transferred from another state does not affect the ability of the guardian or conservator to seek appointment as guardian or conservator in the State of Hawaii under chapter 551 if the court has jurisdiction to make an appointment other than by reason of the provisional order of transfer. [L 2012, c 236, pt of §1]
Haw. Rev. Stat. § 551-2 — HI Code / Division 3 / Title 30 / Chapter 551 / Section 551-2
Guardian ad litem; next friend; appointment.
Status: in_force

Nothing in this chapter impairs or affects the power of any court to appoint a guardian to defend the interests of any minor or person not in being impleaded in such court, or interested in any matter there pending, or its power to appoint or allow any person as next friend for a minor, to commence, prosecute, or defend any action or proceeding in the minor's behalf; provided that in all proceedings for annulment, divorce, or separation, except in the case of annulment on the ground of nonage, either spouse, although a minor, may sue or be sued in the minor's name without a guardian or next friend. [CC 1859, §1349; am L 1903, c 16, §2; RL 1925, §3070; RL 1935, §4857; RL 1945, §12507; am L 1947, c 78, §1; RL 1955, §338-8; HRS §551-2; am L 1972, c 145, §1(f); gen ch 1985]
Haw. Rev. Stat. § 554-9 — HI Code / Division 3 / Title 30 / Chapter 554 / Section 554-9
Charitable trusts; leases.
Status: in_force

Trustees of a charitable trust may modify, suspend, or waive the enforcement of any provision of any lease or accept a surrender thereof if a leased land or any structure built thereon has been destroyed in part or in whole by any natural disaster, or the use of the land or the construction of any improvements thereon has been restricted or prohibited in any manner by law, ordinance, or regulation of any government agency due to natural disaster. [L Sp 1960, c 8, §1; Supp, §340-9; HRS §554-9]
Haw. Rev. Stat. § 551A-5 — HI Code / Division 3 / Title 30 / Chapter 551A / Section 551A-5
Fees for services; when not allowed.
Status: in_force

(a) The public guardian may receive such reasonable fees for services as public guardian as the court allows.

(b) No fees shall be allowed which would unreasonably diminish the ward's estate so as to endanger the ward's financial independence, and no fees shall be allowed when the ward's primary source of support derives from public funds.

(c) Any fees received under this section by the public guardian shall be deposited in the state general fund.

(d) No fees shall accrue to the individual benefit of the public guardian. [L 1984, c 223, pt of §1]
Haw. Rev. Stat. § 554B-9 — HI Code / Division 3 / Title 30 / Chapter 554B / Section 554B-9
Use of custodial trust property.
Status: in_force

(a) The custodial trustee shall pay to the beneficiary or expend for the beneficiary's benefit so much or all of the custodial trust property as the beneficiary while not incapacitated may direct from time to time.

(b) If the beneficiary is incapacitated, the custodial trustee shall expend so much or all of the custodial trust property as the custodial trustee determines advisable for the use and benefit of the beneficiary and individuals who were supported by the beneficiary at the time the beneficiary became incapacitated, or who are legally entitled to support by the beneficiary. Expenditures may be made in the manner, at the time, and to the extent that the custodial trustee determines suitable and proper, without court order and without regard to other support, income, or property of the beneficiary.

(c) A custodial trustee may establish checking, savings, or other similar accounts of reasonable amounts under which either the custodial trustee or the beneficiary may withdraw funds from, or draw checks against, the accounts. Funds withdrawn from or checks written against the account by the beneficiary are treated as distributions of custodial trust property by the custodial trustee to the beneficiary. [L 1989, c 76, pt of §1]
Haw. Rev. Stat. § 554G-6 — HI Code / Division 3 / Title 30 / Chapter 554G / Section 554G-6
Investments.
Status: in_force

Nothing in this chapter shall prohibit a trustee from diversifying trust assets.
Haw. Rev. Stat. § 553A-14 — HI Code / Division 3 / Title 30 / Chapter 553A / Section 553A-14
Use of custodial property.
Status: in_force

(a) A custodian may deliver or pay to the minor or expend for the minor's benefit so much of the custodial property as the custodian considers advisable for the use and benefit of the minor, without court order and without regard to:

(1) The duty or ability of the custodian personally or of any other person to support the minor; or

(2) Any other income or property of the minor which may be applicable or available for that purpose.

(b) On petition of an interested person or the minor if the minor has attained the age of fourteen years, the court may order the custodian to deliver or pay to the minor or expend for the minor's benefit so much of the custodial property as the court considers advisable for the use and benefit of the minor.

(c) A delivery, payment, or expenditure under this section is in addition to, not in substitution for, and does not affect any obligation of a person to support the minor. [L 1985, c 91, pt of §1]
Haw. Rev. Stat. § 551G-13 — HI Code / Division 3 / Title 30 / Chapter 551G / Section 551G-13
Jurisdiction.
Status: in_force

A court of the State of Hawaii has jurisdiction to appoint a guardian or issue a protective order for a respondent if:

(1) The State of Hawaii is the respondent's home state;

(2) On the date the petition is filed, the State of Hawaii is considered to be a significant-connection state and:

(A) The respondent does not have a home state or a court of the respondent's home state has declined to exercise jurisdiction because the State of Hawaii is a more appropriate forum; or

(B) The respondent has a home state, a petition for an appointment or order is not pending in a court of that state or another significant-connection state, and before the court makes the appointment or issues the order:

(i) A petition for an appointment or order is not filed in the respondent's home state;

(ii) An objection to the court's jurisdiction is not filed by a person required to be notified of the proceeding; and

(iii) The court of the State of Hawaii concludes that it is an appropriate forum under the factors set forth in section 551G-16;

(3) The State of Hawaii does not have jurisdiction under either paragraph (1) or (2), the respondent's home state and all significant-connection states have declined to exercise jurisdiction because forum and jurisdiction is more appropriate in the State of Hawaii and would be consistent with the United States Constitution and Hawaii state constitution; or

(4) The requirements for special jurisdiction under section 551G-14 are met. [L 2012, c 236, pt of §1]
Haw. Rev. Stat. § 555-1 — HI Code / Division 3 / Title 30 / Chapter 555 / Section 555-1
Definitions.
Status: in_force

As used in this chapter:

"Employees trust" means any trust created by an employer as part of a stock bonus, pension, profit-sharing, or annuity plan for the exclusive benefit of some or all of the employer's employees, or their beneficiaries, to which contributions are made by the employer, or employees, or both, for the purpose of distributing in accordance with such plan to the employees, or their beneficiaries, the earnings or the principal, or both earnings and principal, of the trust fund, provided that it is impossible under the trust terms at any time prior to the satisfaction of all liabilities with respect to employees and their beneficiaries under the trust for any part of the corpus or income to be at any time used for or diverted to purposes other than the exclusive benefit of the employees, or their beneficiaries.

"Employer" includes a group of employers creating a combined plan or trust for the benefit of their employees or the beneficiaries of the employees. [L 1953, c 170, §1; RL 1955, §341-1; HRS §555-1; gen ch 1985]
Haw. Rev. Stat. § 554B-5 — HI Code / Division 3 / Title 30 / Chapter 554B / Section 554B-5
Transfer to custodial trustee by fiduciary or obligor, facility of payment.
Status: in_force

(a) Unless controlled by an instrument designating a custodial trustee under section 554B-3, a person, including a fiduciary other than a custodial trustee, who holds property of or owes a debt to an incapacitated individual not having a conservator may make a transfer to an adult member of the beneficiary's family or to a trust company as custodial trustee for the benefit of the incapacitated individual. If the property or obligation exceeds $20,000 in value, the transfer must be authorized by the court.

(b) The written acknowledgment of delivery signed by a custodial trustee constitutes a sufficient receipt and discharge for property transferred to the custodial trustee pursuant to this section. [L 1989, c 76, pt of §1; am L 2004, c 161, §36]
Haw. Rev. Stat. § 553A-18 — HI Code / Division 3 / Title 30 / Chapter 553A / Section 553A-18
Renunciation, resignation, death, or removal of custodian; designation of successor custodian.
Status: in_force

(a) A person nominated under section 553A-3 or designated under section 553A-9 as custodian may decline to serve by delivering a valid renunciation pursuant to chapter 526 to the person who made the nomination or to the transferor or the transferor's legal representative. If the event giving rise to a transfer has not occurred and no substitute custodian able, willing, and eligible to serve was nominated under section 553A-3, the person who made the nomination may nominate a substitute custodian under section 553A-3; otherwise the transferor or the transferor's legal representative shall designate a substitute custodian at the time of the transfer, in either case from among the persons eligible to serve as custodian for that kind of property under section 553A-9(a). The custodian so designated has the rights of a successor custodian.

(b) A custodian at any time may designate a trust company or an adult other than a transferor under section 553A-4 as successor custodian by executing and dating an instrument of designation before a subscribing witness other than the successor. If the instrument of designation does not contain or is not accompanied by the resignation of the custodian, the designation of the successor does not take effect until the custodian resigns, dies, becomes incapacitated, or is removed.

(c) A custodian may resign at any time by delivering written notice to the minor if the minor has attained the age of fourteen years and to the successor custodian and by delivering the custodial property to the successor custodian.

(d) If a custodian is ineligible, dies, or becomes incapacitated without having effectively designated a successor and the minor has attained the age of fourteen years, the minor may designate as successor custodian, in the manner prescribed in subsection (b), an adult member of the minor's family, a conservator of the minor, or a trust company. If the minor has not attained the age of fourteen years or fails to act within sixty days after the ineligibility, death, or incapacity, the conservator of the minor becomes successor custodian. If the minor has no conservator or the conservator declines to act, the transferor, the legal representative of the transferor or of the custodian, an adult member of the minor's family, or any other interested person may petition the court to designate a successor custodian.

(e) A custodian who declines to serve under subsection (a) or resigns under subsection (c), or the legal representative of a deceased or incapacitated custodian, as soon as practicable, shall put the custodial property and records in the possession and control of the successor custodian. The successor custodian by action may enforce the obligation to deliver custodial property and records and becomes responsible for each item as received.

(f) A transferor, the legal representative of a transferor, an adult member of the minor's family, a guardian of the minor, the conservator of the minor, or the minor if the minor has attained the age of fourteen years may petition the court to remove the custodian for cause and to designate a successor custodian other than a transferor under section 553A-4 or to require the custodian to give appropriate bond. [L 1985, c 91, pt of §1; am L 2000, c 43, §2; am L 2004, c 161, §36]
Haw. Rev. Stat. § 553A-16 — HI Code / Division 3 / Title 30 / Chapter 553A / Section 553A-16
Exemption of third person from liability.
Status: in_force

A third person in good faith and without court order may act on the instructions of or otherwise deal with any person purporting to make a transfer or purporting to act in the capacity of a custodian and, in the absence of knowledge, is not responsible for determining:

(1) The validity of the purported custodian's designation;

(2) The propriety of, or the authority under this chapter for, any act of the purported custodian;

(3) The validity or propriety under this chapter of any instrument or instructions executed or given either by the person purporting to make a transfer or by the purported custodian; or

(4) The propriety of the application of any property of the minor delivered to the purported custodian. [L 1985, c 91, pt of §1]
Haw. Rev. Stat. § 554G-11 — HI Code / Division 3 / Title 30 / Chapter 554G / Section 554G-11
Multiple transfers.
Status: in_force

If more than one permitted transfer is made by means of the same trust instrument:

(1) The making of a subsequent permitted transfer shall be disregarded in determining whether a creditor's claim with respect to a prior permitted transfer is extinguished as provided in section 554G-8; and

(2) Any distribution to a beneficiary shall be deemed to have been made from the latest permitted transfer. [L 2010, c 182, pt of §2]
Haw. Rev. Stat. § 551G-5 — HI Code / Division 3 / Title 30 / Chapter 551G / Section 551G-5
Cooperation between courts.
Status: in_force

(a) In a guardianship or protective proceeding in the State of Hawaii, the court may request the appropriate court of another state to do any of the following:

(1) Hold an evidentiary hearing;

(2) Order a person in the other state to produce evidence or give testimony pursuant to procedures of that state;

(3) Order that an evaluation or assessment be made of the respondent;

(4) Order any appropriate investigation of a person involved in a proceeding;

(5) Forward to the court of the State of Hawaii a certified copy of the transcript or other record of a hearing under paragraph (1) or any other proceeding, any evidence otherwise produced under paragraph (2), and any evaluation or assessment prepared in compliance with an order under paragraph (3) or (4);

(6) Issue any order necessary to assure the appearance in the proceeding of a person whose presence is necessary for the court to make a determination, including the respondent or the incapacitated or protected person; or

(7) Issue an order authorizing the release of medical, financial, criminal, or other relevant information in that state, including protected health information as defined in 45 Code of Federal Regulations section 160.103, as amended.

(b) If a court of another state in which a guardianship or protective proceeding is pending requests assistance of the kind provided in subsection (a), a court of the State of Hawaii has jurisdiction for the limited purpose of granting the request or making reasonable efforts to comply with the request. [L 2012, c 236, pt of §1]
Haw. Rev. Stat. § 553A-22 — HI Code / Division 3 / Title 30 / Chapter 553A / Section 553A-22
Effect on existing custodianships.
Status: in_force

(a) Any transfer of custodial property as now defined in this chapter made before July 1, 1985, is validated notwithstanding that there was no specific authority in the Hawaii Uniform Gifts to Minors Act for the coverage of custodial property of that kind or for a transfer from that source at the time the transfer was made.

(b) This chapter applies to all transfers made before July 1, 1985, in a manner and form prescribed in the Hawaii Uniform Gifts to Minors Act except insofar as the application impairs constitutionally vested rights or extends the duration of custodianships in existence on July 1, 1985.

(c) Sections 553A-1 and 553A-20 with respect to the age of a minor for whom custodial property is held under this chapter do not apply to custodial property held in a custodianship that terminated because of the minor's attainment of the age of eighteen after March 27, 1972, and before July 1, 1985. [L 1985, c 91, pt of §1]

Revision Note

"July 1, 1985" substituted for "the effective date of this chapter".
Haw. Rev. Stat. § 554-10 — HI Code / Division 3 / Title 30 / Chapter 554 / Section 554-10
Charitable trusts; administration.
Status: in_force

(a) In the administration of any trust that is a "private foundation", as defined in section 509 of the Code or to which section 4947 of the Code applies, the following shall be prohibited:

(1) Engaging in any act of "self-dealing", as defined in section 4941(d) of the Code;

(2) Retaining any "excess business holdings", as defined in section 4943(c) of the Code;

(3) Making any investments in a manner as to subject it to tax under section 4944 of the Code; and

(4) Making any "taxable expenditures", as defined in section 4945(d) of the Code;

provided that this subsection shall not apply to amounts of any trust to which section 4947(a)(2) of the Code applies, as described in the second sentence of section 4947(a)(2) of the Code, and paragraphs (2) and (3) shall not apply to any trust to which section 4947(a)(2) of the Code applies, as described in section 4947(b)(3) of the Code.

(b) In the administration of any trust which is a "private foundation" as defined in section 509 of the Code or a "charitable trust" as defined in section 4947(a)(1) of the Code, there shall be distributed, and the trustee or trustees shall be empowered and authorized to distribute, for the purposes specified in the trust instrument, such amounts at such time and in such manner as shall be required so as not to subject it to tax under section 4942 of the Code.

(c) Nothing in this section shall impair the rights and powers of the courts or the attorney general of this State with respect to any trust.

(d) References in this section to sections of the Code are to sections of the Internal Revenue Code of 1954, as heretofore amended, and shall include future amendments to such sections and corresponding provisions of future Internal Revenue laws. [L 1971, c 136, §1; am L 2018, c 18, §42]
Haw. Rev. Stat. § 554B-17 — HI Code / Division 3 / Title 30 / Chapter 554B / Section 554B-17
Termination and distribution.
Status: in_force

(a) A custodial trust terminates on the custodial trustee's receipt of a signed written direction of the beneficiary, if not incapacitated within section 554B-10, or of the beneficiary's conservator, if any, or upon the beneficiary's death. Upon termination, the custodial trustee shall transfer the unexpended custodial trust property:

(1) To the beneficiary, if not incapacitated;

(2) To the conservator or other court-designated recipient for an incapacitated beneficiary; or

(3) Upon the beneficiary's death, in the following order:

(A) As last directed in a writing signed by the deceased beneficiary who was at the time not incapacitated and received by the custodial trustee during the life of the deceased beneficiary;

(B) To the survivor of multiple beneficiaries when survivorship is provided pursuant to section 554B-6;

(C) As designated in the custodial trust instrument; or

(D) To the estate of the deceased beneficiary.

(b) If, when the custodial trust would otherwise terminate, the distributee is incapacitated, the custodial trust continues for the benefit of the distributee as beneficiary until the incapacity is removed or the custodial trust is terminated by the distributee's conservator.

(c) The death of a beneficiary does not terminate the power of the custodial trustee to discharge obligations of the custodial trustee or beneficiary incurred before the termination of the custodial trust. [L 1989, c 76, pt of §1; am L 2004, c 161, §36]
Haw. Rev. Stat. § 557A-202 — HI Code / Division 3 / Title 30 / Chapter 557A / Section 557A-202
Distribution to residuary and remainder beneficiaries.
Status: in_force

(a) Each beneficiary described in section 557A-201(4) is entitled to receive a portion of the net income equal to the beneficiary's fractional interest in undistributed principal assets, using values as of the distribution date. If a fiduciary makes more than one distribution of assets to beneficiaries to whom this section applies, each beneficiary, including one who does not receive part of the distribution, is entitled, as of each distribution date, to the net income the fiduciary has received after the date of death or terminating event or earlier distribution date but has not distributed as of the current distribution date.

(b) In determining a beneficiary's share of net income, the following rules apply:

(1) The beneficiary is entitled to receive a portion of the net income equal to the beneficiary's fractional interest in the undistributed principal assets immediately before the distribution date, including assets that later may be sold to meet principal obligations;

(2) The beneficiary's fractional interest in the undistributed principal assets shall be calculated without regard to property specifically given to a beneficiary and property required to pay pecuniary amounts not in trust;

(3) The beneficiary's fractional interest in the undistributed principal assets shall be calculated on the basis of the aggregate value of those assets as of the distribution date without reducing the value by any unpaid principal obligation; and

(4) The distribution date for purposes of this section may be the date as of which the fiduciary calculates the value of the assets if that date is reasonably near the date on which assets are actually distributed.

(c) The rules in this section apply to net gain or loss realized after the date of death or terminating event or earlier distribution date from the disposition of a principal asset if this section applies to the income from the asset.

(d) If a fiduciary does not distribute all of the collected but undistributed net income or gain to each person as of a distribution date, the fiduciary shall maintain appropriate records showing the interest of each beneficiary in that net income or gain. [L 2000, c 191, pt of §1]
Haw. Rev. Stat. § 551A-7 — HI Code / Division 3 / Title 30 / Chapter 551A / Section 551A-7
Annual report.
Status: in_force

The public guardian shall prepare and submit an annual report to the chief justice and render such other reports as the chief justice may from time to time require.
Haw. Rev. Stat. § 553A-19 — HI Code / Division 3 / Title 30 / Chapter 553A / Section 553A-19
Accounting by and determination of liability of custodian.
Status: in_force

(a) A minor who has attained the age of fourteen years, the minor's guardian or legal representative, an adult member of the minor's family, a transferor, or a transferor's legal representative may petition the court:

(1) For an accounting by the custodian or the custodian's legal representative; or

(2) For a determination of responsibility, as between the custodial property and the custodian personally, for claims against the custodial property unless the responsibility has been adjudicated in an action under section 553A-17 to which the minor or the minor's legal representative was a party.

(b) A successor custodian may petition the court for an accounting by the predecessor custodian.

(c) The court, in a proceeding under this chapter or in any other proceeding, may require or permit the custodian or the custodian's legal representative to account.

(d) If a custodian is removed under section 553A-18(f), the court shall require an accounting and order delivery of the custodial property and records to the successor custodian and the execution of all instruments required for transfer of the custodial property. [L 1985, c 91, pt of §1; am L 2004, c 161, §36]
Haw. Rev. Stat. § 554B-16 — HI Code / Division 3 / Title 30 / Chapter 554B / Section 554B-16
Limitations of action against custodial trustee.
Status: in_force

(a) Except as provided in subsection (c), unless previously barred by adjudication, consent, or limitation, a claim for relief against a custodial trustee for accounting or breach of duty is barred as to a beneficiary, a person to whom the custodial trust property is to be paid or delivered, or the legal representative of an incapacitated or deceased beneficiary or payee:

(1) Who has received a final account or statement fully disclosing the matter unless an action or proceeding to assert the claim is commenced within two years after receipt of the final account or statement; or

(2) Who has not received a final account or statement fully disclosing the matter unless an action or proceeding to assert the claim is commenced within three years after the termination of the custodial trust.

(b) Except as provided in subsection (c), a claim for relief to recover from a custodial trustee for fraud, misrepresentation, or concealment related to the final settlement of the custodial trust or concealment of the existence of the custodial trust is barred unless an action or proceeding to assert the claim is commenced within five years after the termination of the custodial trust.

(c) A claim for relief is not barred by this section if the claimant:

(1) Is a minor, until the earlier of two years after:

(A) Attaining majority; or

(B) The claimant's death;

(2) Is an incapacitated adult, until the earliest of two years after:

(A) The appointment of a conservator;

(B) The removal of the incapacity; or

(C) The death of the claimant; or

(3) Was an adult, now deceased, who was not incapacitated, until two years after death. [L 1989, c 76, pt of §1; am L 2004, c 161, §36]

Revision Note

In subsection (c), subparagraphs redesignated pursuant to §23G-15.
Haw. Rev. Stat. § 551G-17 — HI Code / Division 3 / Title 30 / Chapter 551G / Section 551G-17
Jurisdiction declined by reason of conduct.
Status: in_force

(a) If at any time a court of the State of Hawaii determines that it acquired jurisdiction to appoint a guardian or issue a protective order because of unjustifiable conduct, the court may:

(1) Decline to exercise jurisdiction;

(2) Exercise jurisdiction for the limited purpose of fashioning an appropriate remedy to ensure the health, safety, and welfare of the respondent or the protection of the respondent's property or prevent a repetition of the unjustifiable conduct, including staying the proceeding until a petition for the appointment of a guardian or issuance of a protective order is filed in a court of another state having jurisdiction; or

(3) Continue to exercise jurisdiction after considering:

(A) The extent to which the respondent and all persons required to be notified of the proceedings have acquiesced in the exercise of the court's jurisdiction;

(B) Whether it is a more appropriate forum than the court of any other state under the factors set forth in section 551G-16(c); and

(C) Whether the court of any other state would have jurisdiction under factual circumstances in substantial conformity with the jurisdictional standards of section 551G-13.

(b) If a court of the State of Hawaii determines that it acquired jurisdiction to appoint a guardian or issue a protective order because a party seeking to invoke its jurisdiction engaged in unjustifiable conduct, it may assess against that party necessary and reasonable expenses, including attorney's fees, investigative fees, court costs, communication expenses, witness fees and expenses, and travel expenses. The court may not assess fees, costs, or expenses of any kind against the State of Hawaii or a governmental subdivision, agency, or instrumentality of the State of Hawaii unless authorized by law other than this chapter. [L 2012, c 236, pt of §1]
Haw. Rev. Stat. § 554B-14 — HI Code / Division 3 / Title 30 / Chapter 554B / Section 554B-14
Expenses, compensation, and bond of custodial trustee.
Status: in_force

Except as provided otherwise in the custodial trust instrument, in an agreement with the beneficiary, or by court order:

(1) A custodial trustee is entitled to reimbursement from custodial trust property for reasonable expenses incurred in the performance of fiduciary services;

(2) A custodial trustee has a noncumulative election to be made no later than six months following the end of each calendar year to charge a reasonable compensation for fiduciary services performed during that year; and

(3) A custodial trustee need not post a bond for faithful performance of the custodial trust. [L 1989, c 76, pt of §1]
Haw. Rev. Stat. § 554B-12 — HI Code / Division 3 / Title 30 / Chapter 554B / Section 554B-12
Liability to third persons.
Status: in_force

(a) A claim based on a contract entered into by a custodial trustee acting in a fiduciary capacity, an obligation arising from the ownership or control of custodial trust property, or a tort committed in the course of administering the custodial trust may be asserted against the custodial trust property by proceeding against the custodial trustee in the fiduciary capacity, whether or not the custodial trustee or the beneficiary is personally liable.

(b) A custodial trustee is not personally liable:

(1) On a contract properly entered into in a fiduciary capacity unless the custodial trustee fails to reveal that capacity and to identify the custodial trust in the contract; or

(2) For an obligation arising from control of custodial trust property or for a tort committed in the course of the administration of the custodial trust unless the custodial trustee is personally at fault.

(c) A beneficiary is not personally liable for an obligation arising from ownership of custodial trust property or for a tort committed in the course of administration of the custodial trust unless the beneficiary is personally in possession of the custodial trust property giving rise to the liability or is personally at fault.

(d) Neither subsection (b) or (c) precludes any proceeding to establish liability of the custodial trustee or beneficiary to the extent that either is protected as the insured by liability insurance. [L 1989, c 76, pt of §1]
Haw. Rev. Stat. § 553A-3 — HI Code / Division 3 / Title 30 / Chapter 553A / Section 553A-3
Nomination of custodian.
Status: in_force

(a) A person having the right to designate the recipient of property transferable upon the occurrence of a future event may revocably nominate a custodian to receive the property for a minor beneficiary upon the occurrence of the event by naming the custodian followed in substance by the words: "as custodian for ____________________ (name of minor) under the Hawaii Uniform Transfers to Minors Act." The nomination may name one or more persons as substitute custodians to whom the property must be transferred, in the order named, if the first nominated custodian dies before the transfer or is unable, declines, or is ineligible to serve. The nomination may be made in a will, a trust, a deed, an instrument exercising a power of appointment, or in a writing designating a beneficiary of contractual rights which is registered with or delivered to the payor, issuer, or other obligor of the contractual rights.

(b) A custodian nominated under this section must be a person to whom a transfer of property of that kind may be made under section 553A-9(a).

(c) The nomination of a custodian under this section does not create custodial property until the nominating instrument becomes irrevocable or a transfer to the nominated custodian is completed under section 553A-9. Unless the nomination of a custodian has been revoked, upon the occurrence of the future event the custodianship becomes effective and the custodian shall enforce a transfer of the custodial property pursuant to section 553A-9. [L 1985, c 91, pt of §1]
Haw. Rev. Stat. § 551E-7 — HI Code / Division 3 / Title 30 / Chapter 551E / Section 551E-7
Co-agents and successor agents.
Status: in_force

(a) A principal may designate two or more persons to act as co-agents. Unless the power of attorney otherwise provides, each co-agent may exercise its authority independently.

(b) A principal may designate one or more successor agents to act if an agent resigns, dies, becomes incapacitated, is not qualified to serve, or declines to serve. A principal may grant authority to designate one or more successor agents to an agent or other person designated by name, office, or function. Unless the power of attorney otherwise provides, a successor agent:

(1) Has the same authority as that granted to the original agent; and

(2) May not act until all predecessor agents have resigned, died, become incapacitated, are no longer qualified to serve, or have declined to serve.

(c) Except as otherwise provided in the power of attorney and subsection (d), an agent that does not participate in or conceal a breach of fiduciary duty committed by another agent, including a predecessor agent, shall not be liable for the actions of the other agent.

(d) An agent that has actual knowledge of a breach or imminent breach of fiduciary duty by another agent shall notify the principal and, if the principal is incapacitated, take any action reasonably appropriate in the circumstances to safeguard the principal's best interest. An agent that fails to notify the principal or take action as required by this subsection shall be liable for the reasonably foreseeable damages that could have been avoided if the agent had notified the principal or taken such action. An agent that breaches a fiduciary duty remains liable for the full amount of damages caused by the breach. [L 2014, c 22, pt of §1]
Haw. Rev. Stat. § 553A-2 — HI Code / Division 3 / Title 30 / Chapter 553A / Section 553A-2
Scope and jurisdiction.
Status: in_force

(a) This chapter applies to a transfer that refers to this chapter in the designation under section 553A-9(a) by which the transfer is made if at the time of the transfer, the transferor, the minor, or the custodian is a resident of this State or the custodial property is located in this State. The custodianship so created remains subject to this chapter despite a subsequent change in residence of a transferor, the minor, or the custodian, or the removal of custodial property from this State.

(b) A person designated as custodian under this chapter is subject to personal jurisdiction in this State with respect to any matter relating to the custodianship.

(c) A transfer that purports to be made and which is valid under the Uniform Transfers to Minors Act, the Uniform Gifts to Minors Act, or a substantially similar act, of another state is governed by the law of the designated state and may be executed and is enforceable in this State if at the time of the transfer, the transferor, the minor, or the custodian is a resident of the designated state or the custodial property is located in the designated state. [L 1985, c 91, pt of §1]
Haw. Rev. Stat. § 551E-6 — HI Code / Division 3 / Title 30 / Chapter 551E / Section 551E-6
Termination of power of attorney or agent's authority.
Status: in_force

(a) A power of attorney terminates when:

(1) The principal dies;

(2) The principal becomes incapacitated, if the power of attorney is not durable;

(3) The principal revokes the power of attorney;

(4) The power of attorney provides that it terminates;

(5) The purpose of the power of attorney is accomplished; or

(6) The principal revokes the agent's authority or the agent dies, becomes incapacitated, or resigns, and the power of attorney does not provide for another agent to act under the power of attorney.

(b) An agent's authority terminates when:

(1) The principal revokes the authority;

(2) The agent dies, becomes incapacitated, or resigns;

(3) An action is filed for the dissolution or annulment of the agent's marriage to the principal or their legal separation, unless the power of attorney otherwise provides; or

(4) The power of attorney terminates.

(c) Unless the power of attorney otherwise provides, an agent's authority is exercisable until the authority terminates under subsection (b), notwithstanding a lapse of time since the execution of the power of attorney.

(d) Termination of an agent's authority or of a power of attorney is not effective as to the agent or another person that, without actual knowledge of the termination, acts in good faith under the power of attorney. An act so performed, unless otherwise invalid or unenforceable, binds the principal and the principal's successors in interest.

(e) Incapacity of the principal of a power of attorney that is not durable shall not revoke or terminate the power of attorney as to an agent or other person that, without actual knowledge of the incapacity, acts in good faith under the power of attorney. An act so performed, unless otherwise invalid or unenforceable, binds the principal and the principal's successors in interest.

(f) The execution of a power of attorney shall not revoke a power of attorney previously executed by the principal unless the subsequent power of attorney provides that the previous power of attorney is revoked or that all other powers of attorney are revoked. [L 2014, c 22, pt of §1]
Haw. Rev. Stat. § 551E-5 — HI Code / Division 3 / Title 30 / Chapter 551E / Section 551E-5
Effective date of power of attorney.
Status: in_force

(a) A power of attorney is effective when executed unless the principal provides in the power of attorney that it becomes effective at a future date or upon the occurrence of a future event or contingency.

(b) If a power of attorney becomes effective upon the occurrence of a future event or contingency, the principal, in the power of attorney, may authorize one or more persons to determine in a writing or other record that the event or contingency has occurred.

(c) If a power of attorney becomes effective upon the principal's incapacity and the principal has not authorized a person to determine whether the principal is incapacitated, or the person authorized is unable or unwilling to make the determination, the power of attorney becomes effective upon a determination in a writing or other record by:

(1) A physician or licensed psychologist that the principal has an impairment in the ability to receive and evaluate information or make or communicate decisions even with the use of technological assistance; or

(2) An attorney-at-law, a judge, or an appropriate governmental official that the principal is incapacitated.

(d) A person authorized by the principal in the power of attorney to determine that the principal is incapacitated may act as the principal's personal representative pursuant to the Health Insurance Portability and Accountability Act, sections 1171 through 1179 of the Social Security Act, title 42 United States Code section 1320d, as amended, and applicable regulations, to obtain access to the principal's health care information and communicate with the principal's health care provider. [L 2014, c 22, pt of §1]
Haw. Rev. Stat. § 556-5 — HI Code / Division 3 / Title 30 / Chapter 556 / Section 556-5
Check drawn by and payable to fiduciary.
Status: in_force

If a check or other bill of exchange is drawn by a fiduciary as such or in the name of the fiduciary's principal by a fiduciary empowered to draw such instrument in the name of the fiduciary's principal, payable to the fiduciary personally, or payable to a third person and by the third person transferred to the fiduciary, and is thereafter transferred by the fiduciary, whether in payment of a personal debt of the fiduciary or otherwise, the transferee is not bound to inquire whether the fiduciary is committing a breach of the fiduciary's obligation as fiduciary in transferring the instrument, and is not chargeable with notice that the fiduciary is committing a breach of obligation as fiduciary unless the transferee takes the instrument with actual knowledge of such breach or with knowledge of such facts that the transferee's action in taking the instrument amounts to bad faith.
Haw. Rev. Stat. § 551A-3 — HI Code / Division 3 / Title 30 / Chapter 551A / Section 551A-3
When not appointed.
Status: in_force

The public guardian shall not be appointed if another suitable guardian is available and willing to accept the guardianship appointment, unless the court finds that the best interests of the ward would be better served by the appointment of the public guardian.
Haw. Rev. Stat. § 556-10 — HI Code / Division 3 / Title 30 / Chapter 556 / Section 556-10
Cases not provided for in chapter.
Status: in_force

In any case not provided for in this chapter the rules of law and equity, including the law merchant and those rules of law and equity relating to trusts, agency, negotiable instruments, and banking, shall continue to apply.
Haw. Rev. Stat. § 551G-42 — HI Code / Division 3 / Title 30 / Chapter 551G / Section 551G-42
Relation to Electronic Signatures in Global and National Commerce Act.
Status: in_force

This chapter modifies, limits, and supersedes the federal Electronic Signatures in Global and National Commerce Act, title 15 United States Code section 7001, et seq., but does not modify, limit, or supersede section 101(c) of that Act, title 15 United States Code section 7001(c), or authorize electronic delivery of any of the notices described in section 103(b) of that Act, title 15 United States Code section 7003(b).
Haw. Rev. Stat. § 554B-19 — HI Code / Division 3 / Title 30 / Chapter 554B / Section 554B-19
Applicable law.
Status: in_force

(a) This chapter applies to a registration, transfer, or declaration that refers to this chapter as provided in section 554B-2 if, at the time of the registration, transfer, or declaration, the transferor, beneficiary, or custodial trustee is a resident of this State or the custodial trust property is located in this State. The custodial trust remains subject to this chapter despite a subsequent change in residence of the transferor, beneficiary, or custodial trustee, or removal of the custodial trust property from this State.

(b) A transfer made under a substantially similar act of another state is governed by the law of that state and may be executed or enforced in this State. [L 1989, c 76, pt of §1]
Haw. Rev. Stat. § 554G-9 — HI Code / Division 3 / Title 30 / Chapter 554G / Section 554G-9
Limitations on permitted transfers.
Status: in_force

The limitations contained in section 554G-8 on actions by creditors to avoid permitted transfers shall not apply to:

(1) Any person to whom the transferor is indebted on account of a family court-supervised agreement or family court order for the payment of support or alimony to the transferor's spouse, former spouse, or children, or for a division or distribution of property to the transferor's spouse or former spouse; provided that the transferor is in default by thirty days or more of making a payment due under the agreement or order, but only to the extent of the debt and not to any claim for forced heirship, legitime, or elective share;

(2) Any person who suffers death, personal injury, or property damage on or before the date of a permitted transfer; provided that the death, personal injury, or property damage is determined to have been caused in whole or in part by the tortious act or omission of either the transferor or another person for whom the transferor is or was vicariously liable to the extent of the transferor's liability or vicarious liability;

(3) Any lender who extends a secured or collateralized loan to the transferor based on the transferor's or the transferor's agent's express or implied representation that the assets of a trust established under this chapter would be available as security against the loan in the event of the transferor's default thereon;

(4) The State of Hawaii to the extent that a transfer results in the transferor being unable to meet the transferor's tax liabilities, but only to the extent necessary to extinguish the outstanding tax liabilities; or

(5) A divorce or dissolution of marriage or civil union, for purposes of considering property subject to division under section 580-47, a transferor-beneficiary's interest with respect to assets transferred to the trust instrument:

(A) After the transferor's marriage or entry into a civil union; or

(B) Within thirty days prior to the transferor's marriage or civil union unless the transferor gives written notice to the other party to the marriage or civil union of the transfer; provided that in the event of the divorce or dissolution of the marriage or civil union of a non-transferor beneficiary of the trust, the non-transferor beneficiary's interest in the trust is not considered property subject to division under section 580-47. [L 2010, c 182, pt of §2; am L 2011, c 161, §9]
Haw. Rev. Stat. § 554G-2 — HI Code / Division 3 / Title 30 / Chapter 554G / Section 554G-2
Definitions.
Status: in_force

As used in this chapter:

"Claim" means a right to payment, whether or not the right is reduced to judgment, liquidated, unliquidated, fixed, contingent, matured, unmatured, disputed, undisputed, legal, equitable, secured, or unsecured.

"Creditor" means, with respect to a transferor, a person who has a claim.

"Debt" means liability on a claim.

"Former spouse" means a person to whom the transferor was married where the marriage was dissolved before the time of the permitted transfer, or person with whom the transferor was in a civil union where the civil union was dissolved before the time of the permitted transfer.

"Permitted property" includes real property, personal property, and interests in real or personal property.

"Permitted transfer" means a transfer of permitted property by or from one or more transferors who own an undivided interest in the property to one or more trustees, at least one of which is a permitted trustee, by means of a trust instrument, regardless of whether consideration is exchanged. In the case of a transfer to more than one trustee, a disposition that is otherwise a permitted transfer shall not be treated as other than a permitted transfer solely because not all of the trustees are qualified trustees.

"Permitted trustee" means a person, other than the transferor, who is a resident of this State or a bank or trust company that is authorized to do business in this State, possesses and exercises trust powers, has its principal place of business in this State; and:

(1) Maintains or arranges for custody of some or all of the property that is the subject of the permitted transfer;

(2) Maintains records for the trust on an exclusive or nonexclusive basis;

(3) Prepares or arranges for the preparation of fiduciary income tax returns; or

(4) Otherwise materially participates in the administration of the trust.

"Person" means a natural person.

"Spouse" means a person to whom the transferor is married or with whom the person is party to a civil union at the time of the permitted transfer.

"Transfer" means the disposition, conveyance, or assignment of property, including the change in the legal ownership of property occurring upon the substitution of one trustee for another or the addition of one or more new trustees, or the exercise of a power that causes the disposition, conveyance, or assignment of permitted property to a trustee or trustees, but shall not include the release or relinquishment of an interest in property that was formerly the subject of a permitted transfer.

"Transferor" means:

(1) An owner of permitted property;

(2) The holder of a power of appointment that authorizes the holder to appoint in favor of the holder, the holder's creditors, the holder's estate, or the creditors of the holder's estate; or

(3) A trustee who directly or indirectly makes a disposition of permitted property.

"Trustee" includes an original, additional, or successor trustee, whether or not appointed or confirmed by court.

"Trust instrument" means an irrevocable instrument appointing a permitted trustee or permitted trustees for the permitted property that is the subject of a disposition. [L 2010, c 182, pt of §2; am L 2011, c 161, §3]

Revision Note
Haw. Rev. Stat. § 558-6 — HI Code / Division 3 / Title 30 / Chapter 558 / Section 558-6
Conveyance by trustee.
Status: in_force

Any person dealing with the trustee under the recorded instrument shall take any interest transferred by the trustee free and clear of the claims of all the beneficiaries of the trust, and of any unrecorded separate declarations or agreements collateral to the recorded instrument whether referred to in the recorded instrument or not, and of anyone claiming by, through or under such beneficiaries including, and without limiting the foregoing to, any claim arising out of any dower or curtesy interest of the spouse of any beneficiary thereof; provided that nothing herein contained shall prevent the beneficiary of any unrecorded collateral declarations or agreements from enforcing the terms of the unrecorded collateral declarations or agreements against the trustee.
Haw. Rev. Stat. § 551G-16 — HI Code / Division 3 / Title 30 / Chapter 551G / Section 551G-16
Appropriate forum.
Status: in_force

(a) A court of the State of Hawaii having jurisdiction under section 551G-13 to appoint a guardian or issue a protective order may decline to exercise its jurisdiction if it determines at any time that a court of another state is a more appropriate forum.

(b) If a court of the State of Hawaii declines to exercise its jurisdiction under subsection (a), it shall either dismiss or stay the proceeding. The court may impose any condition the court considers just and proper, including the condition that a petition for the appointment of a guardian or issuance of a protective order be filed promptly in another state.

(c) In determining whether it is an appropriate forum, the court shall consider all relevant factors, including:

(1) Any expressed preference of the respondent;

(2) Whether abuse, neglect, or exploitation of the respondent has occurred or is likely to occur and which state could best protect the respondent from the abuse, neglect, or exploitation;

(3) The length of time the respondent was physically present in or was a legal resident of a state;

(4) The distance of the respondent from the court in each state;

(5) The financial circumstances of the respondent's estate;

(6) The nature and location of the evidence;

(7) The ability of the court in each state to decide the issue expeditiously and the procedures necessary to present evidence;

(8) The familiarity of the court of each state with the facts and issues in the proceeding; and

(9) If an appointment were made, the court's ability to monitor the conduct of the guardian or conservator. [L 2012, c 236, pt of §1]
Haw. Rev. Stat. § 554-1 — HI Code / Division 3 / Title 30 / Chapter 554 / Section 554-1
Vesting title to trust estates.
Status: in_force

In the case of the valid appointment or succession of any trustee to fill a vacancy in any trusteeship, whether the vacancy is caused by death, removal, or otherwise, any circuit court having jurisdiction over the subject matter of the trust, may make a vesting order which shall vest the legal title in and to the trust property situate in the State in the trustee so appointed or succeeding, subject to the trust, solely, unless there be a co-trustee or co-trustees in which case in the new trustee and the new trustee's co-trustee or co-trustees as the case may be jointly.
Haw. Rev. Stat. § 556-6 — HI Code / Division 3 / Title 30 / Chapter 556 / Section 556-6
Deposit in name of fiduciary as such.
Status: in_force

If a deposit is made in a bank to the credit of a fiduciary as such, the bank is authorized to pay the amount of the deposit or any part thereof upon the check of the fiduciary, signed with the name in which such deposit is entered, without being liable to the principal, unless the bank pays the check with actual knowledge that the fiduciary is committing a breach of the fiduciary's obligation as fiduciary in drawing the check or with knowledge of such facts that its action in paying the check amounts to bad faith. If, however, the check is payable to the drawee bank and is delivered to it in payment of or as security for a personal debt of the fiduciary to it, the bank is liable to the principal if the fiduciary in fact commits a breach of the fiduciary's obligation as fiduciary in drawing or delivering the check.
Haw. Rev. Stat. § 553A-13 — HI Code / Division 3 / Title 30 / Chapter 553A / Section 553A-13
Powers of custodian.
Status: in_force

(a) A custodian, acting in a custodial capacity, has all the rights, powers, and authority over custodial property that unmarried adult owners have over their own property, but a custodian may exercise those rights, powers, and authority in that capacity only.

(b) This section does not relieve a custodian from liability for breach of section 553A-12. [L 1985, c 91, pt of §1]
Haw. Rev. Stat. § 551G-33 — HI Code / Division 3 / Title 30 / Chapter 551G / Section 551G-33
Effect of registration.
Status: in_force

(a) Upon registration of a guardianship or protective order from another state, the guardian or conservator may exercise in the State of Hawaii all powers authorized in the order of appointment except as prohibited under the laws of the State of Hawaii, including maintaining actions and proceedings in the State of Hawaii and, if the guardian or conservator is not a resident of Hawaii, subject to any conditions imposed upon nonresident parties.

(b) A court of the State of Hawaii may grant any relief available under this chapter and other law of the State of Hawaii to enforce a registered order. [L 2012, c 236, pt of §1]
Haw. Rev. Stat. § 555-2 — HI Code / Division 3 / Title 30 / Chapter 555 / Section 555-2
Trust not in violation of rule against perpetuities.
Status: in_force

Any employees trust may continue for such time as may be necessary to accomplish the purposes for which it has been created and its income may be accumulated for such time as may be necessary to accomplish such purposes. No employees trust shall be deemed to be subject to or in violation of any principle of law against perpetuities under chapter 525 or at common law, or restraints on alienation or perpetual accumulations or perpetual trusts.

The enactment of this chapter shall not in itself give rise to any implication that trusts of this nature have been subject to or in violation of any principle of law against perpetuities under chapter 525 or at common law, or restraints on alienation or perpetual accumulations or perpetual trusts. [L 1953, c 170, §§2, 3; RL 1955, §341-2; HRS §555-2; am L 1992, c 262, §4]
Haw. Rev. Stat. § 554B-7.5 — HI Code / Division 3 / Title 30 / Chapter 554B / Section 554B-7.5
[ §554B-7.
Status: in_force

[ §554B-7.5] Minors in theatrical employment; mandatory trust account; fiduciary duty; rules. (a) The parent or legal guardian of a minor in theatrical employment shall establish a trust account for the benefit of the minor before the minor's first instance of theatrical employment and shall maintain the account until the custodian of the account transfers the contents of the account to the minor or the minor's estate.

(b) The employer of the minor in theatrical employment shall deposit at least fifteen per cent of the minor's gross earnings to the trust account for the minor's benefit until the minor attains the age of majority or is emancipated.

(c) The trust account shall be established with an independent third-party trustee that ensures the security and growth of the trust account and that provides the minor and the minor's parent or legal guardian with quarterly statements.

(d) Any contracts or agreements involving a minor in theatrical employment shall be signed by at least one parent or legal guardian.

(e) A parent or legal guardian of a minor in theatrical employment may access the funds within the mandatory trust account established pursuant to subsection (a) for the minor, but only for the benefit of the minor.

(f) Any misappropriation or fraudulent use of funds within the mandatory trust account established pursuant to subsection (a) by the parent or legal guardian of a minor in theatrical employment, or the independent third-party trustee acting as the custodian of the mandatory trust account, shall be a breach of fiduciary duty subject to civil penalties, criminal prosecution, and, in the case of the third-party trustee, removal from the position of trustee.

(g) This section shall only apply when the gross income of the minor in theatrical employment is at least:

(1) $5,000 for a project; or

(2) $20,000 in a calendar year.

(h) For the purposes of this section:

"Employer" includes any individual, partnership, association, joint stock company, trust, corporation, or the personal representative of the estate of a deceased individual, or the receiver, trustee, or successor of any of the same, employing any person, but shall not include the State or any political subdivision thereof or the United States.

"Theatrical employment" means gainful occupation as a model; dancer; singer; musician; social media influencer; entertainer; or motion picture, television, radio, or theatrical performer. [L 2025, c 173, §2]
Haw. Rev. Stat. § 554B-3 — HI Code / Division 3 / Title 30 / Chapter 554B / Section 554B-3
Custodial trustee for future payment or transfer.
Status: in_force

A custodial trust may be created upon the occurrence of a future event. The person having the right to designate the recipient of property payable or transferable upon a future event may designate in writing a custodial trustee to receive and hold the property for a beneficiary of a custodial trust to be effective upon the occurrence of the event by designating the recipient, followed in substance by the words: "as custodial trustee for ______________________________ (name of beneficiary) under the Hawaii Uniform Custodial Trust Act". Persons may be designated as substitute or successor custodial trustees to whom the property must be transferred in the order named if the first designated custodial trustee is unable or unwilling to serve. The designation may be made in a will, a trust, a deed, a multiple party account, an insurance policy, an instrument exercising a power of appointment, or other writing designating a beneficiary of contractual rights. The designation must be registered with or delivered to the fiduciary, payor, issuer, or obligor of the future right.
Haw. Rev. Stat. § 554G-1 — HI Code / Division 3 / Title 30 / Chapter 554G / Section 554G-1
Short title.
Status: in_force

This chapter shall be known and may be cited as the Permitted Transfers in Trust Act.
Haw. Rev. Stat. § 554B-15 — HI Code / Division 3 / Title 30 / Chapter 554B / Section 554B-15
Reporting and accounting by custodial trustee; determination of liability of custodial trustee.
Status: in_force

(a) Upon the acceptance of the custodial trust property, a custodial trustee shall provide a written statement describing the custodial trust property and shall thereafter provide a written statement of the administration of the custodial trust property:

(1) Once each year,

(2) Upon request at a reasonable time by the beneficiary or the beneficiary's legal representative,

(3) Upon resignation or removal of the custodial trustee, and

(4) On termination of the custodial trust.

These statements must be provided to the beneficiary or to the beneficiary's legal representative, if any. On termination of the beneficiary's interest, a current statement must be provided to the person to whom the custodial trust property is to be delivered.

(b) A beneficiary, the beneficiary's legal representative, an adult member of the beneficiary's family, or a person interested in the custodial trust property or as appropriate, another person interested in the welfare of the beneficiary may petition the court for an accounting by the custodial trustee or the custodial trustee's legal representative.

(c) A successor custodial trustee may petition the court for an accounting by a predecessor custodial trustee.

(d) The court, in a proceeding under this chapter or in any other proceeding, may require or permit the custodial trustee or the custodial trustee's legal representative to account; or the custodial trustee or the custodial trustee's legal representative may petition the court for approval of final accounts.

(e) If a custodial trustee is removed, the court shall require an accounting and order delivery of the custodial trust property and records to the successor custodial trustee and the execution of all instruments required for transfer of the custodial trust property.

(f) On petition of the custodial trustee, or any person who could petition for an accounting, the court, after notice to interested persons, may issue instructions to the custodial trustee or review the propriety of the acts of a custodial trustee or the reasonableness of compensation determined by the custodial trustee for the services of the custodial trustee or others. [L 1989, c 76, pt of §1]

Revision Note

In subsection (a), paragraphs redesignated.
Haw. Rev. Stat. § 557A-506 — HI Code / Division 3 / Title 30 / Chapter 557A / Section 557A-506
Adjustments between principal and income because of taxes.
Status: in_force

(a) A fiduciary may make adjustments between principal and income to offset the shifting of economic interests or tax benefits between income beneficiaries and remainder beneficiaries that arise from:

(1) Elections and decisions, other than those described in subsection (b), that the fiduciary makes from time to time regarding tax matters;

(2) An income tax or any other tax that is imposed upon the fiduciary or a beneficiary as a result of a transaction involving or a distribution from the estate or trust; or

(3) The ownership by an estate or trust of an interest in an entity whose taxable income, whether or not distributed, is includable in the taxable income of the estate, trust, or a beneficiary.

(b) If the amount of an estate tax marital deduction or charitable contributions deduction is reduced because a fiduciary deducts an amount that is paid from principal for income tax purposes instead of deducting it for estate tax purposes, and as a result, estate taxes paid from principal are increased and income taxes paid by an estate, trust, or beneficiary are decreased, each estate, trust, or beneficiary that benefits from the decrease in income tax shall reimburse the principal from which the increase in estate tax is paid. The total reimbursement shall equal the increase in the estate tax to the extent that the principal used to pay the increase would have qualified for a marital deduction or charitable contributions deduction but for the payment. The proportionate share of the reimbursement for each estate, trust, or beneficiary whose income taxes are reduced shall be the same as its proportionate share of the total decrease in income tax. An estate or trust shall reimburse principal from income. [L 2000, c 191, pt of §1]
Haw. Rev. Stat. § 556-9 — HI Code / Division 3 / Title 30 / Chapter 556 / Section 556-9
Deposit in names of two or more trustees.
Status: in_force

When a deposit is made in a bank in the name of two or more persons as trustees and a check is drawn upon the trust account by any trustee or trustees authorized by the other trustee or trustees to draw checks upon the trust account, neither the payee nor other holder nor the bank is bound to inquire whether it is a breach of trust to authorize such trustee or trustees to draw checks upon the trust account, and is not liable unless the circumstances be such that the action of the payee or other holder or the bank amounts to bad faith.
Haw. Rev. Stat. § 553A-5 — HI Code / Division 3 / Title 30 / Chapter 553A / Section 553A-5
Transfer authorized by will or trust.
Status: in_force

(a) A personal representative or trustee may make an irrevocable transfer pursuant to section 553A-9 to a custodian for the benefit of a minor as authorized in the governing will or trust.

(b) If the testator or settlor has nominated a custodian under section 553A-3 to receive the custodial property, the transfer must be made to that person.

(c) If the testator or settlor has not nominated a custodian under section 553A-3, or all persons so nominated as custodian die before the transfer or are unable, decline, or are ineligible to serve, the personal representative or the trustee, as the case may be, shall designate the custodian from among those eligible to serve as custodian for property of that kind under section 553A-9(a). [L 1985, c 91, pt of §1]
Haw. Rev. Stat. § 554-7 — HI Code / Division 3 / Title 30 / Chapter 554 / Section 554-7
Assignee for creditors, instructions, and approval of accounts.
Status: in_force

A trustee or assignee for creditors has the same right, by application to a circuit court to request and receive instructions or to have the trustee's or assignee's accounts approved or be discharged from the trustee's or assignee's trust, as any other fiduciary, according to the usages and principles of courts of equity concerning trusts.
Haw. Rev. Stat. § 554B-2 — HI Code / Division 3 / Title 30 / Chapter 554B / Section 554B-2
Custodial trust; general.
Status: in_force

(a) A person may create a custodial trust of property by transfer evidenced by registration or other written instrument of transfer to another in any manner consistent with law, naming an individual, who may be the transferor or another, as beneficiary, in which the transferee is designated, in substance, as custodial trustee under the Hawaii Uniform Custodial Trust Act.

(b) A person may create a custodial trust of property by declaration evidenced by registration or other written instrument of declaration in any manner consistent with law, naming an individual other than the declarant as beneficiary, in which the declarant as titleholder is designated, in substance, as custodial trustee under the Hawaii Uniform Custodial Trust Act. A trust registration or other declaration for the sole benefit of the declarant is not a custodial trust under this chapter.

(c) Title to custodial trust property is in the custodial trustee, and the beneficial interest in custodial trust property is in the beneficiary, subject to the provisions of this chapter.

(d) Except as provided in subsection (e), a custodial trust may not be terminated by the transferor.

(e) A custodial trust may be terminated by the beneficiary if not incapacitated, or by the conservator of an incapacitated beneficiary, upon delivering to the custodial trustee a writing signed by the beneficiary or conservator declaring the termination. The exercise of a durable power of attorney for an incapacitated beneficiary is not effective to terminate or direct the distribution or management of the trust. If not previously terminated, the custodial trust terminates on the death of the beneficiary, and the custodial trust property must be distributed as provided in section 554B-17.

(f) Additional property may be placed in an existing custodial trust pursuant to this chapter.

(g) A successor custodial trustee may be designated, or the designation authorized, by the custodial trust instrument.

(h) This chapter does not restrict other means of creating trusts. A trust whose terms do not conform to this chapter may be valid and enforceable according to its terms under other law. [L 1989, c 76, pt of §1; am L 2004, c 161, §36]
Haw. Rev. Stat. § 553A-20 — HI Code / Division 3 / Title 30 / Chapter 553A / Section 553A-20
Termination of custodianship.
Status: in_force

The custodian shall transfer in an appropriate manner the custodial property to the minor or to the minor's estate upon the earlier of:

(1) The minor's attainment of twenty-one years of age with respect to custodial property transferred under section 553A-4 or 553A-5;

(2) The minor's attainment of age eighteen with respect to custodial property transferred under section 553A-6 or 553A-7; or

(3) The minor's death. [L 1985, c 91, pt of §1]
Haw. Rev. Stat. § 557A-412 — HI Code / Division 3 / Title 30 / Chapter 557A / Section 557A-412
Timber.
Status: in_force

(a) A trustee may account for net receipts from the sale of timber and related products under subsection (b), unless the trustee determines that net receipts are insubstantial and allocates the net receipts to principal under section 557A-408. If a trust owns more than one block of timberland, the trustee may use different methods to account for net receipts from different blocks.

(b) If a trustee does not account under section 557A-408 for net receipts from the sale of timber and related products or allocate the net receipts to principal because they are insubstantial, the trustee shall allocate the net receipts:

(1) To income to the extent that the amount of timber removed from the land does not exceed the rate of growth of the block as a whole during the accounting periods in which a beneficiary has a mandatory income interest;

(2) To principal to the extent that the amount of timber removed from the land exceeds the block's rate of growth or the net receipts are from the sale of standing timber;

(3) To or between income and principal if the net receipts are from the lease of timberland or from a contract to cut timber from land owned by a trust, by determining the amount of timber removed from the land under the lease or contract and applying the rules in paragraphs (1) and (2); or

(4) To principal to the extent that advance payments, bonuses, and other payments are not allocated pursuant to paragraph (1), (2), or (3).

(c) In determining the net receipts from the sale of timber, a trustee shall deduct and transfer to principal a reasonable amount for depletion.

(d) This chapter applies regardless of whether a decedent or transferor was harvesting timber from the property before it became subject to the trust.

(e) If a trust owns an interest in timberland on July 1, 2000, the trustee may allocate net receipts from the sale of timber and related products as provided in this section or in the manner used by the trustee before July 1, 2000. If the trust acquires an interest in timberland after July 1, 2000, the trustee shall allocate net receipts from the sale of timber and related products as provided in this section. [L 2000, c 191, pt of §1]

Revision Note

"July 1, 2000" substituted for "the effective date of this chapter".