Haw. Rev. Stat. § 551E-3 — HI Code / Division 3 / Title 30 / Chapter 551E / Section 551E-3
Power of attorney.
Status: in_force

(a) A power of attorney created under this chapter shall be durable unless it expressly provides that it is terminated by the incapacity of the principal.

(b) A power of attorney shall be signed by the principal or in the principal's conscious presence by another individual directed by the principal to sign the principal's name on the power of attorney. A signature on a power of attorney is presumed to be genuine if the principal acknowledges the signature before a notary public or other individual authorized by law to take acknowledgments.

(c) A power of attorney executed in Hawaii on or after January 1, 2015, is valid if its execution complied with the law of this State as it existed at the time of execution.

(d) A power of attorney executed outside of Hawaii is valid in this State if, when the power of attorney was executed, the execution complied with:

(1) The law of the jurisdiction that determines the meaning and effect of the power of attorney pursuant to subsection (f); or

(2) The requirements for a military power of attorney pursuant to title 10 United States Code section 1044b, as amended.

(e) Except as otherwise provided by statute other than this chapter, a photocopy or electronically transmitted copy of an original power of attorney shall have the same effect as the original.

(f) The meaning and effect of a power of attorney is determined by the law of the jurisdiction indicated in the power of attorney and, in the absence of an indication of jurisdiction, by the law of the jurisdiction in which the power of attorney was executed. [L 2014, c 22, pt of §1]
Haw. Rev. Stat. § 557A-410 — HI Code / Division 3 / Title 30 / Chapter 557A / Section 557A-410
Liquidating asset.
Status: in_force

(a) As used in this section, "liquidating asset" means an asset whose value will diminish or terminate because the asset is expected to produce receipts for a period of limited duration. The term includes leaseholds, patents, trademarks, copyrights, royalty rights, and rights to receive payments during a period of more than one year under an arrangement that does not provide for the payment of interest on the unpaid balance. The term does not include deferred compensation that is subject to section 557A-409, natural resources that are subject to section 557A-411, timber that is subject to section 557A-412, an activity that is subject to section 557A-414, an asset subject to section 557A-415, or any asset for which the trustee establishes a reserve for depreciation under section 557A-503.

(b) A trustee shall allocate to income ten per cent of the receipts from a liquidating asset and the balance to principal. [L 2000, c 191, pt of §1]
Haw. Rev. Stat. § 551G-4 — HI Code / Division 3 / Title 30 / Chapter 551G / Section 551G-4
Communication between courts.
Status: in_force

(a) A court of the State of Hawaii may communicate with a court in another state concerning a proceeding arising under this chapter. Either court may allow the parties to participate in the communication. Except as otherwise provided in subsection (b), the court shall make a record of the communication. The record may be limited to the fact that the communication occurred.

(b) Courts may communicate concerning schedules, calendars, court records, and other administrative matters without making a record. [L 2012, c 236, pt of §1]
Haw. Rev. Stat. § 557A-414 — HI Code / Division 3 / Title 30 / Chapter 557A / Section 557A-414
Derivatives and options.
Status: in_force

(a) As used in this section, "derivative" means a contract or financial instrument or a combination of contracts and financial instruments that gives a trust the right or obligation to participate in some or all changes in the price of a tangible or intangible asset or group of assets, or changes in a rate, an index of prices or rates, or other market indicator for an asset or a group of assets.

(b) To the extent that a trustee does not account under section 557A-403 for transactions in derivatives, receipts from and disbursement made in connection with those transactions shall be allocated to principal.

(c) If a trustee grants an option to buy property from the trust, whether or not the trust owns the property when the option is granted, grants an option that permits another person to sell property to the trust, or acquires an option to buy property for the trust or an option to sell an asset owned by the trust, and the trustee or other owner of the asset is required to deliver the asset if the option is exercised, an amount received for granting the option shall be allocated to principal, and an amount paid to acquire the option shall be paid from principal. A gain or loss realized upon the exercise of an option, including an option granted to a settlor of the trust for services rendered, shall be allocated to principal. [L 2000, c 191, pt of §1]
Haw. Rev. Stat. § 556-2 — HI Code / Division 3 / Title 30 / Chapter 556 / Section 556-2
Application of payments made to fiduciaries.
Status: in_force

A person who in good faith pays or transfers to a fiduciary any money or other property which the fiduciary as such is authorized to receive, is not responsible for the proper application thereof by the fiduciary; and any right or title acquired from the fiduciary in consideration of such payment or transfer is not invalid in consequence of a misapplication by the fiduciary.
Haw. Rev. Stat. § 553A-23 — HI Code / Division 3 / Title 30 / Chapter 553A / Section 553A-23
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. § 554B-1 — HI Code / Division 3 / Title 30 / Chapter 554B / Section 554B-1
Definitions.
Status: in_force

As used in this chapter:

"Adult" means an individual who has attained the age of eighteen years.

"Beneficiary" means an individual for whom property has been delivered to a custodial trustee for the individual's use and benefit under this chapter.

"Conservator" means a person appointed or qualified by a court to manage the estate of an individual or a person legally authorized to perform substantially the same functions.

"Court" means the circuit court of the State.

"Custodial trustee" means a person designated as trustee of a custodial trust under this chapter and includes a substitute or successor custodial trustee.

"Custodial trust property" means an interest in property transferred to a custodial trustee under this chapter and the income from and proceeds of that interest.

"Guardian" means a person appointed or qualified by a court as a guardian of an individual and includes a limited guardian, but excludes a person who is merely a guardian ad litem.

"Incapacitated" means that an individual lacks the ability to manage property and business affairs effectively by reason of mental illness, mental deficiency, physical illness or disability, chronic use of drugs, chronic intoxication, confinement, detention by a foreign power, disappearance, minority, or other cause. A beneficiary shall be treated as incapacitated for the purpose of this chapter if the transferor so directs in the instrument creating the custodial trust.

"Legal representative" means a personal representative or conservator.

"Member of the beneficiary's family" includes a beneficiary's spouse, descendant, stepchild, parent, stepparent, grandparent, brother, sister, uncle, or aunt, whether of the whole or half blood or by adoption.

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

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

"State" means a state, commonwealth, territory, or possession of the United States, or the District of Columbia.

"Transferor" means a person who creates a custodial trust by transfer or declaration.

"Trust company" means a financial institution, corporation, or other legal entity, authorized to exercise general trust powers. [L 1989, c 76, pt of §1; am L 2004, c 161, §22]
Haw. Rev. Stat. § 553A-7 — HI Code / Division 3 / Title 30 / Chapter 553A / Section 553A-7
Transfer by obligor.
Status: in_force

(a) Subject to subsections (b) and (c), a person not subject to section 553A-5 or 553A-6 who holds property of or owes a liquidated debt to a minor not having a conservator may make an irrevocable transfer to a custodian for the benefit of the minor pursuant to section 553A-9.

(b) If a person having the right to do so under section 553A-3 has nominated a custodian under that section to receive the custodial property, the transfer must be made to that person.

(c) If no custodian has been nominated under section 553A-3, or all persons so nominated as custodian die before the transfer or are unable, decline, or are ineligible to serve, a transfer under this section may be made to an adult member of the minor's family or to a trust company unless the property exceeds $10,000 in value. [L 1985, c 91, pt of §1]
Haw. Rev. Stat. § 558-5 — HI Code / Division 3 / Title 30 / Chapter 558 / Section 558-5
Inquiry into authority of trustee.
Status: in_force

Any grantee, mortgagee, lessee, transferee, assignee, or person obtaining satisfaction, releases, or otherwise in any way dealing with the trustee with respect to the real property held in trust under the recorded instrument, may but shall not be obligated to inquire into the identification or status of any named or unnamed beneficiaries, or their heirs or assigns to whom a trustee may be accountable under the terms of the recorded instrument, or under any unrecorded separate declarations or agreements collateral to the recorded instrument whether referred to in the recorded instrument or not, nor to inquire into or ascertain the authority of such trustee to act within and exercise the powers granted under the recorded instrument, nor to inquire into the adequacy or disposition of any consideration, if any is paid or delivered to the trustee in connection with any interest so acquired from the trustee, nor to inquire into any of the provisions of any of the unrecorded declarations or agreements.
Haw. Rev. Stat. § 557A-403 — HI Code / Division 3 / Title 30 / Chapter 557A / Section 557A-403
Business and other activities conducted by trustee.
Status: in_force

(a) If a trustee who conducts a business or other activity determines that it is in the best interest of all the beneficiaries to account separately for the business or activity instead of accounting for it as part of the trust's general accounting records, the trustee may maintain separate accounting records for its transactions, whether or not its assets are segregated from other trust assets.

(b) A trustee who accounts separately for a business or other activity may determine the extent to which its net cash receipts shall be retained for working capital, the acquisition or replacement of fixed assets, or other reasonably foreseeable needs of the business or activity, and the extent to which the remaining net cash receipts are accounted for as principal or income in the trust's general accounting records. If a trustee sells assets of the business or other activity, other than in the ordinary course of the business or activity, the trustee shall account for the net amount received as principal in the trust's general accounting records to the extent the trustee determines that the amount received is no longer required in the conduct of the business.

(c) Activities for which the trustee may maintain separate accounting records include:

(1) Retail, manufacturing, service, and other traditional business activities;

(2) Farming;

(3) Raising and selling livestock and other animals;

(4) Management of rental properties;

(5) Extraction of minerals and other natural resources;

(6) Timber operations; and

(7) Activities to which section 557A-415 applies. [L 2000, c 191, pt of §1]
Haw. Rev. Stat. § 551G-15 — HI Code / Division 3 / Title 30 / Chapter 551G / Section 551G-15
Exclusive and continuing jurisdiction.
Status: in_force

Except as otherwise provided in section 551G-14, a court that has appointed a guardian or issued a protective order consistent with this chapter has exclusive and continuing jurisdiction over the proceeding until it is terminated by the court or the appointment or order expires by its own terms.
Haw. Rev. Stat. § 553A-17 — HI Code / Division 3 / Title 30 / Chapter 553A / Section 553A-17
Liability to third persons.
Status: in_force

(a) A claim based on:

(1) A contract entered into by a custodian acting in a custodial capacity;

(2) An obligation arising from the ownership or control of custodial property; or

(3) A tort committed during the custodianship;

may be asserted against the custodial property by proceeding against the custodian in the custodial capacity, whether or not the custodian or the minor is personally liable therefor.

(b) A custodian is not personally liable:

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

(2) For an obligation arising from control of custodial property or for a tort committed during the custodianship unless the custodian is personally at fault.

(c) A minor is not personally liable for an obligation arising from ownership of custodial property or for a tort committed during the custodianship unless the minor is personally at fault. [L 1985, c 91, pt of §1]
Haw. Rev. Stat. § 554B-22 — HI Code / Division 3 / Title 30 / Chapter 554B / Section 554B-22
Severability.
Status: in_force

If any provision of this chapter or its application to any person or circumstance is held invalid, the invalidity does not affect other provisions or applications of this chapter which can be given effect without the invalid provision or application, and to this end the provisions of this chapter are severable.
Haw. Rev. Stat. § 557A-104 — HI Code / Division 3 / Title 30 / Chapter 557A / Section 557A-104
Trustee's power to adjust.
Status: in_force

(a) Subject to subsection (b), a trustee may adjust between principal and income to the extent the trustee considers necessary if all of the following conditions are satisfied:

(1) The trustee invests and manages trust assets as a prudent investor;

(2) The terms of the trust describe the amount that may or must be distributed to a beneficiary by referring to the trust's income; and

(3) The trustee determines, after applying the rules in section 557A-103(a), and considering any power the trustee may have under the trust to invade principal or accumulate income, either of the following conditions exist:

(A) The trustee is unable to administer a trust or estate impartially based on what is fair and reasonable to all beneficiaries if no clear intention to favor one or more beneficiaries is manifested in the will or trust; or

(B) In the case of a will or trust that clearly manifests an intent to favor one or more beneficiaries, the trustee is unable to favor such beneficiaries without diminishing the rights of other beneficiaries.

(b) In deciding whether and to what extent to exercise the power conferred by subsection (a), a trustee shall consider all of the factors relevant to the trust and its beneficiaries, including the following factors to the extent they are relevant:

(1) The nature, purpose, and expected duration of the trust;

(2) The intent of the settlor;

(3) The identity and circumstances of the beneficiaries;

(4) The needs for liquidity, regularity of income, and preservation and appreciation of capital;

(5) The assets held in the trust; the extent to which they consist of financial assets, interests in closely held enterprises, tangible and intangible personal property, or real property; the extent to which an asset is used by a beneficiary; and whether an asset was purchased by the trustee or received from the settlor;

(6) The net amount allocated to income under the other sections of this chapter and the increase or decrease in the value of the principal assets, which the trustee may estimate as to assets for which market values are not readily available;

(7) Whether and to what extent the terms of the trust give the trustee the power to invade principal or accumulate income or prohibit the trustee from invading principal or accumulating income, and the extent to which the trustee has exercised a power from time to time to invade principal or accumulate income;

(8) The actual and anticipated effect of economic conditions on principal and income and effects of inflation and deflation; and

(9) The anticipated tax consequences of an adjustment.

(c) A trustee may not make an adjustment:

(1) That diminishes the income interest in a trust that requires all of the income to be paid at least annually to a surviving spouse and for which an estate tax or gift tax marital deduction would be allowed, in whole or in part, if the trustee did not have the power to make the adjustment;

(2) That reduces the actuarial value of the income interest in a trust to which a person transfers property with the intent to qualify for a gift tax exclusion;

(3) That changes the amount payable to a beneficiary as a fixed annuity or a fixed fraction of the value of the trust's assets;

(4) From any amount that is permanently set aside for charitable purposes under a will or the terms of a trust, unless both income and principal are so set aside; provided that a trustee may transfer income to principal only upon a court order (unless the trustee is holding institutional funds as defined in section 517E-2 exclusively for the benefit of a community foundation and section 517E-4 applies);

(5) If possessing or exercising the power to make an adjustment may cause an individual to be treated as the owner of all or part of the trust for income tax purposes, and the individual would not be treated as the owner if the trustee did not possess the power to make an adjustment;

(6) If possessing or exercising the power to make an adjustment causes all or part of the trust assets to be included for estate tax purposes in the estate of an individual who has the power to remove a trustee or appoint a trustee, or both, and the assets would not be included in the estate of the individual if the trustee did not have the power to make an adjustment; or

(7) If the trustee is a beneficiary of the trust.

(d) If subsection (c)(5), (6), or (7) applies to a trustee and there is more than one trustee, a co-trustee to whom the provision does not apply may make the adjustment, unless the exercise of the power by the remaining trustee or trustees is clearly not permitted by the terms of the trust.

(e) A trustee may release the entire power conferred by subsection (a) or may release only the power to adjust from income to principal or the power to adjust from principal to income if the trustee is uncertain about whether possessing or exercising the power will cause a result described in subsection (c)(1) through (6) or if the trustee determines that possessing or exercising the power will or may deprive the trust of a tax benefit or impose a tax burden not described in subsection (c). The release may be permanent or for a specified period, including a period measured by the life of an individual.

(f) Terms of a trust that limit the power of a trustee to make an adjustment between principal and income are not contrary to this section, unless it is clear from the terms of the trust that the terms are intended to deny the trustee the power of adjustment conferred by subsection (a).

(g) Nothing in this section or in this chapter is intended to create or imply a duty to make an adjustment, and the trustee is not liable for not considering whether to make an adjustment or for choosing not to make an adjustment. [L 2000, c 191, pt of §1; am L 2018, c 18, §43]
Haw. Rev. Stat. § 554B-10 — HI Code / Division 3 / Title 30 / Chapter 554B / Section 554B-10
Determination of incapacity, proceeding and effect.
Status: in_force

(a) A beneficiary is incapacitated for the purposes of this chapter and the custodial trustee shall administer and distribute the custodial trust as one for an incapacitated beneficiary:

(1) If the custodial trust is created under section 554B-5;

(2) If the transferor has so directed in the writing creating the custodial trust; or

(3) If the custodial trustee has determined that the beneficiary has become incapacitated.

(b) A custodial trustee may determine that the beneficiary has become incapacitated in reliance upon:

(1) Prior direction or authority given by the beneficiary while not incapacitated, including direction or authority pursuant to a durable power of attorney;

(2) The certificate of the beneficiary's physician; or

(3) Other reasonable evidence.

(c) If a custodial trustee for an incapacitated beneficiary reasonably concludes that the beneficiary's incapacity has ceased, or that circumstances concerning the beneficiary's ability to manage assets have changed since the creation of a custodial trust directing administration as for an incapacitated beneficiary, the custodial trustee may administer and distribute the custodial trust as one for a beneficiary who is not incapacitated.

(d) On petition of the beneficiary, the custodial trustee, or other person interested in the welfare of the beneficiary or custodial trust property, the court shall determine and declare whether or not the beneficiary is incapacitated.

(e) Absent determination of incapacity of the beneficiary under subsection (b) or (d), a custodial trustee who has reason to believe that the beneficiary has become incapacitated shall hold and administer the custodial property in accordance with the provisions of this chapter applicable to incapacitated beneficiaries.

(f) Incapacity of a beneficiary does not terminate the custodial trust, any designation of a successor custodial trustee, any powers or authority of the custodial trustee, or any immunities of third persons acting on direction of the custodial trustee. [L 1989, c 76, pt of §1]
Haw. Rev. Stat. § 551G-14 — HI Code / Division 3 / Title 30 / Chapter 551G / Section 551G-14
Special jurisdiction.
Status: in_force

(a) A court of the State of Hawaii, while lacking jurisdiction under section 551G-13(1) through (3), shall have special jurisdiction to do any of the following:

(1) Appoint a guardian in an emergency for a term not exceeding ninety days for a respondent who is physically present in the State of Hawaii;

(2) Issue a protective order with respect to real or tangible personal property located in the State of Hawaii; or

(3) Appoint a guardian or conservator for an incapacitated or protected person for whom a provisional order to transfer the proceeding from another state has been issued under procedures similar to section 551G-21.

(b) If a petition for the appointment of a guardian in an emergency is brought in the State of Hawaii and the State of Hawaii was not the respondent's home state on the date the petition was filed, the court shall dismiss the proceeding at the request of the court of the home state, if any, whether dismissal is requested before or after the emergency appointment. [L 2012, c 236, pt of §1]
Haw. Rev. Stat. § 551G-32 — HI Code / Division 3 / Title 30 / Chapter 551G / Section 551G-32
Registration of protective orders.
Status: in_force

If a conservator has been appointed in another state and a petition for a protective order is not pending in the State of Hawaii, the conservator appointed in the other state, after giving notice to the appointing court of an intent to register, may register the protective order in the State of Hawaii by filing as a foreign judgment in a court of the State of Hawaii, in any judicial circuit in which property belonging to the protected person is located, certified copies of the order and letters of office and of any bond.
Haw. Rev. Stat. § 551G-2 — HI Code / Division 3 / Title 30 / Chapter 551G / Section 551G-2
Definitions.
Status: in_force

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

"Adult" means an individual who has attained eighteen years of age.

"Conservator" means a person appointed by the court to administer the property of an adult, including a person appointed under chapter 551 or 560.

"Guardian" means a person appointed by the court to make decisions regarding the person of an adult, including a person appointed under chapter 551 or 560.

"Guardianship order" means an order appointing a guardian.

"Guardianship proceeding" means a judicial proceeding in which an order for the appointment of a guardian is sought or has been issued.

"Incapacitated person" means an adult for whom a guardian has been appointed.

"Party" means the respondent, petitioner, guardian, conservator, or any other person allowed by the court to participate in a guardianship or protective proceeding.

"Person" except in the terms "incapacitated person" or "protected person", means an individual, corporation, business trust, estate, trust, partnership, limited liability company, association, joint venture, public corporation, government or governmental subdivision, agency, or instrumentality, or any other legal or commercial entity.

"Protected person" means an adult for whom a protective order has been issued.

"Protective order" means an order appointing a conservator or other order related to management of an adult's property.

"Protective proceeding" means a judicial proceeding in which a protective order is sought or has been issued.

"Record" means information that is inscribed on a tangible medium or that is stored in an electronic or other medium and is retrievable in perceivable form.

"Respondent" means an adult for whom a protective order or the appointment of a guardian is sought.

"State" means a state of the United States, the District of Columbia, Puerto Rico, the United States Virgin Islands, a federally recognized Indian tribe, or any territory or insular possession subject to the jurisdiction of the United States. [L 2012, c 236, pt of §1]
Haw. Rev. Stat. § 558-4 — HI Code / Division 3 / Title 30 / Chapter 558 / Section 558-4
Creation of trust, powers of trustee.
Status: in_force

Any recorded instrument transferring any interest in real property in this State, including but not limited to, leasehold and mortgagee's interests, to any person, corporation, bank, or trust company, qualified to act as a trustee in this State, whether or not reference is made in such recorded instrument to any separate unrecorded collateral declarations or agreements, shall be effective to vest in the trustee legal and equitable title over the real property or interest therein, with full power and authority as granted and provided in the recorded instrument to deal in and with the property or interest therein or any part thereof. Any trust authorized pursuant to this chapter shall be valid notwithstanding the fact that the recorded instrument fails to state the duties imposed upon the trustee.
Haw. Rev. Stat. § 558-2 — HI Code / Division 3 / Title 30 / Chapter 558 / Section 558-2
Purpose.
Status: in_force

The purpose of this chapter is to authorize those trusts which incorporate it by reference to convey legal and equitable title to real estate in trust to a qualified trustee; to define the nature and extent of the beneficiaries' interest in the trust property; to define the obligations of persons dealing with the trustee to inquire into the trustee's authority; and to provide for disclosure of the identity and interest of the trust beneficiaries.
Haw. Rev. Stat. § 558-3 — HI Code / Division 3 / Title 30 / Chapter 558 / Section 558-3
Definitions.
Status: in_force

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

"Recorded instrument" means any conveyance, deed, mortgage, lease assignment, or other instrument relating to this chapter and duly executed and recorded with the bureau of conveyances or the land court of the State. [L 1978, c 151, pt of §1]
Haw. Rev. Stat. § 553A-6 — HI Code / Division 3 / Title 30 / Chapter 553A / Section 553A-6
Other transfer by fiduciary.
Status: in_force

(a) Subject to subsection (c), a personal representative or trustee may make an irrevocable transfer to another adult or trust company as custodian for the benefit of a minor pursuant to section 553A-9, in the absence of a will or under a will or trust that does not contain an authorization to do so.

(b) Subject to subsection (c), a conservator may make an irrevocable transfer to another adult or trust company as custodian for the benefit of the minor pursuant to section 553A-9.

(c) A transfer under subsection (a) or (b) may be made only if:

(1) The personal representative, trustee, or conservator considers the transfer to be in the best interest of the minor;

(2) The transfer is not prohibited by or inconsistent with provisions of the applicable will, trust agreement, or other governing instrument; and

(3) The transfer is authorized by the court if it exceeds $10,000 in value. [L 1985, c 91, pt of §1]
Haw. Rev. Stat. § 557A-402 — HI Code / Division 3 / Title 30 / Chapter 557A / Section 557A-402
Distribution from trust or estate.
Status: in_force

Subject to the terms of a recipient trust, an amount received as a distribution of income from a trust or an estate in which the trust has an interest other than a purchased interest shall be allocated to income. An amount received as a distribution of principal from such a trust or estate shall be allocated to principal. If a trustee purchases an interest in a trust that is an investment entity, or a decedent or donor transfers an interest in such a trust to a trustee, section 557A-401 or 557A-415 shall apply to a receipt from the trust.
Haw. Rev. Stat. § 557A-303 — HI Code / Division 3 / Title 30 / Chapter 557A / Section 557A-303
Apportionment when income interest ends.
Status: in_force

(a) As used in this section, "undistributed income" means net income received before the date on which an income interest ends. The term does not include an item of income or expense that is due or accrued or net income that has been added or is required to be added to principal pursuant to the terms of the trust.

(b) When a mandatory income interest ends, the trustee shall pay to a mandatory income beneficiary who survives that date, or the estate of a deceased mandatory income beneficiary whose death causes the interest to end, the beneficiary's share of the undistributed income that is not disposed of pursuant to the terms of the trust, unless the beneficiary has an unqualified power to revoke more than five per cent of the trust immediately before the income interest ends. In the latter case, the undistributed income from the portion of the trust that may be revoked shall be added to principal.

(c) When a trustee's obligation to pay a fixed annuity or a fixed fraction of the value of the trust's assets ends, the trustee shall prorate the final payment if and to the extent required by applicable law to accomplish a purpose of the trust or its settlor relating to income, gift, estate, or other tax requirements. [L 2000, c 191, pt of §1]
Haw. Rev. Stat. § 556-1 — HI Code / Division 3 / Title 30 / Chapter 556 / Section 556-1
Definition of terms.
Status: in_force

(a) In this chapter unless the context or subject matter otherwise requires:

"Bank" includes any person or association of persons, whether incorporated or not, carrying on the business of banking.

"Fiduciary" includes a trustee under any trust, expressed, implied, resulting, or constructive, personal representative, guardian, conservator, curator, receiver, trustee in bankruptcy, assignee for the benefit of creditors, partner, agent, officer of a corporation, public or private, public officer, or any other person acting in a fiduciary capacity for any person, trust or estate.

"Person" includes a corporation, partnership, or other association, or two or more persons having a joint or common interest.

"Principal" includes any person to whom a fiduciary as such owes an obligation.

(b) A thing is done "in good faith", when it is in fact done honestly, whether it be done negligently or not. [L 1945, c 197, §1; RL 1955, §189-1; HRS §556-1; am L 1976, c 200, pt of §1]
Haw. Rev. Stat. § 554-3 — HI Code / Division 3 / Title 30 / Chapter 554 / Section 554-3
Trust estates, leases, investments, etc.
Status: in_force

Any circuit court having jurisdiction over a trust, on application of one or more of the trustees, and after such notice to those interested as is ordered by the court or provided by the rules of the court, may, if it appears to be for the benefit of the trust estate, authorize or direct the trustee or trustees to lease or extend the terms of leases of the real property for such periods as may be deemed advantageous to the estate; or to invest moneys of the trust estate in the purchase of real or personal property, or the constructing, improving, or repairing of buildings or other improvements on the land belonging to the trust estate, or in such other manner as the court deems to be most for the benefit of the trust estate and as best effecting the objects of the trust. Any lease or extension of lease made under such authority or direction shall continue in force for the full period so authorized notwithstanding the trust has terminated.
Haw. Rev. Stat. § 557A-103 — HI Code / Division 3 / Title 30 / Chapter 557A / Section 557A-103
Fiduciary duties; general principles.
Status: in_force

(a) In allocating receipts and disbursements to or between principal and income, and in any matter within the scope of articles 2 and 3, a fiduciary:

(1) Shall administer a trust or estate in accordance with the terms of the trust or the will, even if there is a different provision in this chapter;

(2) May administer a trust or estate by the exercise of a discretionary power of administration given to the fiduciary by the terms of the trust or the will, even if the exercise of the power produces a result different from a result required or permitted by this chapter, and no inference that the fiduciary has improperly exercised the discretion arises from the fact that the fiduciary has made an alteration contrary to the provisions of this chapter;

(3) Shall administer a trust or estate in accordance with this chapter if the terms of the trust or the will do not contain a different provision or do not give the fiduciary a discretionary power of administration; and

(4) Shall add a receipt or charge a disbursement to principal to the extent that the terms of the trust and this chapter do not provide a rule for allocating the receipt or disbursement to or between principal and income.

(b) In exercising the power to adjust granted by section 557A-104(a) or a discretionary power of administration regarding a matter within the scope of this chapter, whether granted by the terms of a trust, a will, or this chapter, a fiduciary shall administer a trust or estate impartially, based on what is fair and reasonable to all of the beneficiaries, except to the extent that the terms of the trust or the will clearly manifest an intention that the fiduciary shall or may favor one or more of the beneficiaries. The exercise of discretion in accordance with this chapter is presumed to be fair and reasonable to all of the beneficiaries. [L 2000, c 191, pt of §1]
Haw. Rev. Stat. § 551E-9 — HI Code / Division 3 / Title 30 / Chapter 551E / Section 551E-9
Agent's acceptance.
Status: in_force

Except as otherwise provided in the power of attorney, a person accepts appointment as an agent under a power of attorney by exercising authority or performing duties as an agent or by any other assertion or conduct indicating acceptance.
Haw. Rev. Stat. § 551E-2 — HI Code / Division 3 / Title 30 / Chapter 551E / Section 551E-2
Applicability.
Status: in_force

This chapter shall apply to all powers of attorney except:

(1) A power to the extent it is coupled with an interest in the subject of the power, including a power given to or for the benefit of a creditor in connection with a credit transaction;

(2) A power to make health care decisions;

(3) A power created by a legal parent or legal guardian placing the care of a minor or a disabled adult under another person;

(4) A proxy or other delegation to exercise voting rights or management rights with respect to an entity; and

(5) A power created on a form prescribed by a government or governmental subdivision, agency, or instrumentality for a governmental purpose. [L 2014, c 22, pt of §1]
Haw. Rev. Stat. § 553A-12 — HI Code / Division 3 / Title 30 / Chapter 553A / Section 553A-12
Care of custodial property.
Status: in_force

(a) A custodian shall:

(1) Take control of custodial property;

(2) Register or record title to custodial property if appropriate; and

(3) Collect, hold, manage, invest, and reinvest custodial property.

(b) In dealing with custodial property, a custodian shall observe the standard of care that would be observed by a prudent person dealing with property of another and is not limited by any other statute restricting investments by fiduciaries. If a custodian has a special skill or expertise or is named custodian on the basis of representations of a special skill or expertise, the custodian shall use that skill or expertise. However, a custodian, in the custodian's discretion and without liability to the minor or the minor's estate, may retain any custodial property received from a transferor.

(c) A custodian may invest in or pay premiums on life insurance or endowment policies on:

(1) The life of the minor only if the minor or the minor's estate is the sole beneficiary; or

(2) The life of another person in whom the minor has an insurable interest only to the extent that the minor, the minor's estate, or the custodian in the capacity of custodian, is the irrevocable beneficiary.

(d) A custodian at all times shall keep custodial property separate and distinct from all other property in a manner sufficient to identify it clearly as custodial property of the minor. Custodial property consisting of an undivided interest is so identified if the minor's interest is held as a tenant in common and is fixed. Custodial property subject to recordation is so identified if it is recorded, and custodial property subject to registration is so identified if it is either registered, or held in an account designated, in the name of the custodian, followed in substance by the words: "as a custodian for ____________________ (name of minor) under the Hawaii Uniform Transfers to Minors Act."

(e) A custodian shall keep records of all transactions with respect to custodial property, including information necessary for the preparation of the minor's tax returns, and shall make them available for inspection at reasonable intervals by a parent or legal representative of the minor or by the minor if the minor has attained the age of fourteen years. [L 1985, c 91, pt of §1]
Haw. Rev. Stat. § 554-8 — HI Code / Division 3 / Title 30 / Chapter 554 / Section 554-8
Charitable trusts; expenses.
Status: in_force

In any proceedings, in any court, concerning a trust, which is wholly or partly charitable and in which the attorney general has been cited by the court or trustees as a necessary or proper party, the court having jurisdiction of such proceedings may require the payment of all reasonable and necessary expenses incurred by the attorney general for the protection of the beneficial interest in, or for the proper conduct of, such proceedings from the corpus or income, or both, of the trust estate, in such reasonable amounts as the court may order. [L Sp 1941, c 16, §1; RL 1945, §12578; RL 1955, §340-8; HRS §554-8]
Haw. Rev. Stat. § 558-7 — HI Code / Division 3 / Title 30 / Chapter 558 / Section 558-7
Personal property.
Status: in_force

In all cases where the recorded instrument contains a provision defining and declaring the interest of beneficiaries to be personal property only, the provision shall be controlling for all purposes where the determination becomes an issue under the laws or in the courts of this State. If no personal property designation appears in the recorded instrument, the interest of the beneficiaries shall be real property.
Haw. Rev. Stat. § 551A-1 — HI Code / Division 3 / Title 30 / Chapter 551A / Section 551A-1
Office of public guardian; establishment; appointment.
Status: in_force

There is established the office of the public guardian in the judiciary. The chief justice shall appoint the public guardian, who shall serve at the chief justice's pleasure.
Haw. Rev. Stat. § 554B-7 — HI Code / Division 3 / Title 30 / Chapter 554B / Section 554B-7
General management duties of custodial trustee.
Status: in_force

(a) A custodial trustee shall register or record the instrument transferring title to custodial trust property if appropriate.

(b) In the management, control, investment, or retention of custodial trust property, a custodial trustee shall follow the directions of the beneficiary if the beneficiary is not incapacitated. In the absence of effective contrary direction by the beneficiary while not incapacitated, the custodial trustee shall observe the standard of care that would be observed by a prudent person dealing with property of another and is not limited by any other law restricting investments by fiduciaries. However, a custodial trustee, in the custodial trustee's discretion, may retain any custodial trust property received from the transferor. If a trust company or other custodial trustee has a special skill or expertise or is named custodial trustee on the basis of representation of a special skill or expertise, the custodial trustee shall use that skill or expertise.

(c) Subject to subsection (b), a custodial trustee shall take control of and collect, hold, manage, invest, and reinvest custodial trust property.

(d) A custodial trustee at all times shall keep custodial trust property of which the custodial trustee has possession and control, separate and distinct from all other property in a manner sufficient to identify it clearly as custodial trust property of the beneficiary. Custodial trust property subject to recordation is so identified if it is recorded, and custodial trust property subject to registration is so identified if it is registered, or held in an account designated, in the name of the custodial trustee followed by words stating in substance: "as custodial trustee for _________________________ (name of beneficiary) under the Hawaii Uniform Custodial Trust Act."

(e) A custodial trustee shall keep records of all transactions with respect to custodial trust property, including information necessary for the preparation of tax returns, and shall make the records and information available at reasonable intervals to the beneficiary or legal representative of the beneficiary.

(f) 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 custodial trust. [L 1989, c 76, pt of §1]
Haw. Rev. Stat. § 554B-11 — HI Code / Division 3 / Title 30 / Chapter 554B / Section 554B-11
Exemption of third person from liability.
Status: in_force

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

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

(2) The propriety of, or the authority under this chapter for, any action of the purported custodial trustee;

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

(4) The propriety of the application of any property delivered to the purported custodial trustee. [L 1989, c 76, pt of §1]
Haw. Rev. Stat. § 551E-8 — HI Code / Division 3 / Title 30 / Chapter 551E / Section 551E-8
Reimbursement and compensation of agent.
Status: in_force

Unless the power of attorney otherwise provides, an agent shall be entitled to reimbursement of expenses reasonably incurred on behalf of the principal and to compensation that is reasonable under the circumstances.
Haw. Rev. Stat. § 553A-8 — HI Code / Division 3 / Title 30 / Chapter 553A / Section 553A-8
Receipt for custodial property.
Status: in_force

A written acknowledgment of delivery by a custodian constitutes a sufficient receipt and discharge for custodial property transferred to the custodian pursuant to this chapter.
Haw. Rev. Stat. § 554G-7 — HI Code / Division 3 / Title 30 / Chapter 554G / Section 554G-7
Retained interests of transferor.
Status: in_force

(a) A permitted transfer shall be subject to this chapter notwithstanding a transferor's retention of any or all of the powers and rights described in section 554G-5(c) and notwithstanding the transferor's service as investment advisor pursuant to section554G-4.5(a)(3).

(b) The transferor shall have only the powers and rights specifically conferred by the trust instrument. Except as permitted by sections 554G-5(c) and 554G-4.5(a)(3), a transferor shall have no rights or authority with respect to the property that is the subject of a permitted transfer or to the income from property that is the subject of a permitted transfer. Any agreement or understanding purporting to grant or permit the retention of any greater rights or authority shall be void. [L 2010, c 182, pt of §2; am L 2011, c 161, §7]
Haw. Rev. Stat. § 557A-504 — HI Code / Division 3 / Title 30 / Chapter 557A / Section 557A-504
Transfers from income to reimburse principal.
Status: in_force

(a) If a trustee makes or expects to make a principal disbursement described in this section, the trustee may transfer an appropriate amount from income to principal in one or more accounting periods to reimburse principal or to provide a reserve for future principal disbursements.

(b) Principal disbursements to which subsection (a) applies include the following, but only to the extent that the trustee has not been and does not expect to be reimbursed by a third party:

(1) An amount chargeable to income but paid from principal because it is unusually large, including extraordinary repairs;

(2) A capital improvement to a principal asset, whether in the form of changes to an existing asset or the construction of a new asset, including special assessments;

(3) Disbursements made to prepare property for rental, including tenant allowances, leasehold improvements, and broker's commissions;

(4) Periodic payments on an obligation secured by a principal asset to the extent that the amount transferred from income to principal for depreciation is less than the periodic payments; and

(5) Disbursements described in section 557A-502(a)(7).

(c) If the asset whose ownership gives rise to the disbursements becomes subject to a successive income interest after an income interest ends, a trustee may continue to transfer amounts from income to principal as provided in subsection (a). [L 2000, c 191, pt of §1]
Haw. Rev. Stat. § 551E-10 — HI Code / Division 3 / Title 30 / Chapter 551E / Section 551E-10
Agent's duties.
Status: in_force

(a) Notwithstanding provisions in the power of attorney, an agent that has accepted appointment shall:

(1) Act in accordance with the principal's reasonable expectations to the extent actually known by the agent and, otherwise, in the principal's best interest;

(2) Act in good faith; and

(3) Act only within the scope of authority granted in the power of attorney.

(b) Except as otherwise provided in the power of attorney, an agent that has accepted appointment shall:

(1) Act loyally for the principal's benefit;

(2) Act so as not to create a conflict of interest that impairs the agent's ability to act impartially in the principal's best interest;

(3) Act with the care, competence, and diligence ordinarily exercised by agents in similar circumstances;

(4) Keep a record of all receipts, disbursements, and transactions made on behalf of the principal;

(5) Cooperate with a person that has authority to make health care decisions for the principal to carry out the principal's reasonable expectations to the extent actually known by the agent and, otherwise, act in the principal's best interest; and

(6) Attempt to preserve the principal's estate plan, to the extent actually known by the agent, if preserving the plan is consistent with the principal's best interest based on all relevant factors, including:

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

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

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

(D) Eligibility for a benefit, a program, or assistance under a statute or regulation.

(c) An agent that acts in good faith shall not be liable to any beneficiary of the principal's estate plan for failure to preserve the plan.

(d) An agent that acts with care, competence, and diligence for the best interest of the principal shall not be liable solely because the agent also benefits from the act or has an individual or conflicting interest in relation to the property or affairs of the principal.

(e) If an agent is selected by the principal because of special skills or expertise possessed by the agent or in reliance on the agent's representation that the agent has special skills or expertise, the special skills or expertise shall be considered in determining whether the agent has acted with care, competence, and diligence under the circumstances.

(f) Absent a breach of duty to the principal, an agent shall not be liable if the value of the principal's property declines.

(g) An agent that exercises authority to delegate to another person the authority granted by the principal or that engages another person on behalf of the principal shall not be liable for an act, error of judgment, or default of that person if the agent exercises care, competence, and diligence in selecting and monitoring the person.

(h) Except as otherwise provided in the power of attorney, an agent shall not be required to disclose receipts, disbursements, or transactions conducted on behalf of the principal unless ordered by a court or requested by the principal, a guardian, a conservator, another fiduciary acting for the principal, a governmental agency having authority to protect the welfare of the principal, or, upon the death of the principal, by the personal representative or successor in interest of the principal's estate. If so requested, within thirty days the agent shall comply with the request or provide a writing or other record substantiating why additional time is needed and shall comply with the request within an additional thirty days. [L 2014, c 22, pt of §1]