reglab/housing_qa huggingface dataset:
HI Rev Stat § 557A-407 (2021)
2021 Hawaii Revised Statutes|Title 30. Guardians and Trustees|557A. Uniform Principal and Income Act|557A-407 Insurance policies and similar contracts.

  §557A-407 Insurance policies and similar contracts. (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]
HI Rev Stat § 557A-408 (2021)
2021 Hawaii Revised Statutes|Title 30. Guardians and Trustees|557A. Uniform Principal and Income Act|557A-408 Insubstantial allocations not required.

  §557A-408 Insubstantial allocations not required. If a trustee determines that an allocation between principal and income required by sections 557A-409 through 557A-412 or section [557A-415] is insubstantial, the trustee may allocate the entire amount to principal if one of the circumstances described in section 557A-104(c) does not apply to such an allocation. This power may be exercised by a co-trustee in the circumstances described in section 557A-104(d), and it may be released for the reasons and in the manner described in section 557A-104(e). An allocation shall be presumed to be insubstantial if:  (1) The amount of the allocation would increase or decrease an accounting period's net income, as determined before the allocation, by less than ten per cent; or  (2) The value of the asset producing the receipt for which the allocation would be made is less than ten per cent of the total value of the trust's assets at the beginning of the accounting period. [L 2000, c 191, pt of §1]
HI Rev Stat § 557A-409 (2021)
2021 Hawaii Revised Statutes|Title 30. Guardians and Trustees|557A. Uniform Principal and Income Act|557A-409 Deferred compensation, annuities, and similar payments.

  §557A-409 Deferred compensation, annuities, and similar payments. (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]
HI Rev Stat § 557A-410 (2021)
2021 Hawaii Revised Statutes|Title 30. Guardians and Trustees|557A. Uniform Principal and Income Act|557A-410 Liquidating asset.

  §557A-410 Liquidating asset. (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]
HI Rev Stat § 557A-411 (2021)
2021 Hawaii Revised Statutes|Title 30. Guardians and Trustees|557A. Uniform Principal and Income Act|557A-411 Minerals, water, and other natural resources.

  §557A-411 Minerals, water, and other natural resources. (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".
HI Rev Stat § 557A-412 (2021)
2021 Hawaii Revised Statutes|Title 30. Guardians and Trustees|557A. Uniform Principal and Income Act|557A-412 Timber.

  §557A-412 Timber. (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".
HI Rev Stat § 557A-413 (2021)
2021 Hawaii Revised Statutes|Title 30. Guardians and Trustees|557A. Uniform Principal and Income Act|557A-413 Property not productive of income.

  §557A-413 Property not productive of income. (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]
HI Rev Stat § 557A-414 (2021)
2021 Hawaii Revised Statutes|Title 30. Guardians and Trustees|557A. Uniform Principal and Income Act|557A-414 Derivatives and options.

  §557A-414 Derivatives and options. (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]
HI Rev Stat § 557A-415 (2021)
2021 Hawaii Revised Statutes|Title 30. Guardians and Trustees|557A. Uniform Principal and Income Act|557A-415 Asset-backed securities.

  §557A-415 Asset-backed securities. (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]
HI Rev Stat § 557A-501 (2021)
2021 Hawaii Revised Statutes|Title 30. Guardians and Trustees|557A. Uniform Principal and Income Act|557A-501 Disbursements from income.

  §557A-501 Disbursements from income. Unless otherwise governed by statutory fees or unless the instrument provides for it, [a] trustee shall make the following disbursements from income to the extent that they are not disbursements to which section 557A-201(2)(B) or (C) applies:  (1) One-half of the regular compensation of the trustee and of any person providing investment advisory or custodial services to the trustee;  (2) One-half of all expenses for accountings, judicial proceedings, or other matters that involve both the income and remainder interests;  (3) All of the other ordinary expenses incurred in connection with the administration, management, or preservation of trust property and the distribution of income, including interest, ordinary repairs, regularly recurring taxes assessed against principal, and expenses of a proceeding or other matter that concerns primarily the income interest; and  (4) Recurring premiums on insurance covering the loss of a principal asset or the loss of income from or use of the asset. [L 2000, c 191, pt of §1] Law Journals and Reviews  Trustee v. Beneficiary. 15 HBJ, no. 13, at 145 (2013).
HI Rev Stat § 557A-502 (2021)
2021 Hawaii Revised Statutes|Title 30. Guardians and Trustees|557A. Uniform Principal and Income Act|557A-502 Disbursements from principal.

  §557A-502 Disbursements from principal. (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] Law Journals and Reviews  Trustee v. Beneficiary. 15 HBJ, no. 13, at 145 (2013).
HI Rev Stat § 557A-503 (2021)
2021 Hawaii Revised Statutes|Title 30. Guardians and Trustees|557A. Uniform Principal and Income Act|557A-503 Transfers from income to principal for depreciation.

  §557A-503 Transfers from income to principal for depreciation. (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]
HI Rev Stat § 557A-504 (2021)
2021 Hawaii Revised Statutes|Title 30. Guardians and Trustees|557A. Uniform Principal and Income Act|557A-504 Transfers from income to reimburse principal.

  §557A-504 Transfers from income to reimburse principal. (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]
HI Rev Stat § 557A-505 (2021)
2021 Hawaii Revised Statutes|Title 30. Guardians and Trustees|557A. Uniform Principal and Income Act|557A-505 Income taxes.

  §557A-505 Income taxes. (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]
HI Rev Stat § 557A-506 (2021)
2021 Hawaii Revised Statutes|Title 30. Guardians and Trustees|557A. Uniform Principal and Income Act|557A-506 Adjustments between principal and income because of taxes.

  §557A-506 Adjustments between principal and income because of taxes. (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]
HI Rev Stat § 558-1 (2021)
2021 Hawaii Revised Statutes|Title 30. Guardians and Trustees|558. Land Trusts--Beneficiary Controlled|558-1 Title.

  §558-1 Title. This chapter shall be known and may be cited as the Land Trust Act. [L 1978, c 151, pt of §1]