reglab/statecodes huggingface dataset:
2023 Hawaii Revised Statutes › Title 30. Guardians and Trustees › 554B. Uniform Custodial Trust Act › 554B-10 Determination of incapacity, proceeding and effect.

§554B-10 Determination of incapacity, proceeding and effect.
(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]
2023 Hawaii Revised Statutes › Title 30. Guardians and Trustees › 554B. Uniform Custodial Trust Act › 554B-11 Exemption of third person from liability.

§554B-11 Exemption of third person from liability.
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]
2023 Hawaii Revised Statutes › Title 30. Guardians and Trustees › 554B. Uniform Custodial Trust Act › 554B-12 Liability to third persons.

§554B-12 Liability to third persons.
(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]
2023 Hawaii Revised Statutes › Title 30. Guardians and Trustees › 554B. Uniform Custodial Trust Act › 554B-14 Expenses, compensation, and bond of custodial trustee.

§554B-14 Expenses, compensation, and bond of custodial trustee.
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]
2023 Hawaii Revised Statutes › Title 30. Guardians and Trustees › 554B. Uniform Custodial Trust Act › 554B-15 Reporting and accounting by custodial trustee; determination of liability of custodial trustee.

§554B-15 Reporting and accounting by custodial trustee; determination of liability of custodial trustee.
(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.
Rules of Court
Accountings, see Hawaii Probate Rules, part A(VII); HPR rules 83, 84.
2023 Hawaii Revised Statutes › Title 30. Guardians and Trustees › 554B. Uniform Custodial Trust Act › 554B-16 Limitations of action against custodial trustee.

§554B-16 Limitations of action against custodial trustee.
(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.
2023 Hawaii Revised Statutes › Title 30. Guardians and Trustees › 554B. Uniform Custodial Trust Act › 554B-17 Termination and distribution.

§554B-17 Termination and distribution.
(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]
2023 Hawaii Revised Statutes › Title 30. Guardians and Trustees › 554B. Uniform Custodial Trust Act › 554B-19 Applicable law.

§554B-19 Applicable law.
(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]
2023 Hawaii Revised Statutes › Title 30. Guardians and Trustees › 554B. Uniform Custodial Trust Act › 554B-20 Uniformity of application and construction.

§554B-20 Uniformity of application and construction.
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. [L 1989, c 76, pt of §1]
2023 Hawaii Revised Statutes › Title 30. Guardians and Trustees › 554B. Uniform Custodial Trust Act › 554B-22 Severability.

§554B-22 Severability.
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. [L 1989, c 76, pt of §1]
2023 Hawaii Revised Statutes › Title 30. Guardians and Trustees › 554G. Permitted Transfers in Trust › 554G-4 Permitted trustees.

§554G-4 Permitted trustees.
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. [L 2010, c 182, pt of §2; am L 2011, c 161, §4]
2023 Hawaii Revised Statutes › Title 30. Guardians and Trustees › 554G. Permitted Transfers in Trust › 554G-4.5 Advisors.

§554G-4.5 Advisors.
(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]
2023 Hawaii Revised Statutes › Title 30. Guardians and Trustees › 554G. Permitted Transfers in Trust › 554G-7 Retained interests of transferor.

§554G-7 Retained interests of transferor.
(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 section 554G-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]
2023 Hawaii Revised Statutes › Title 30. Guardians and Trustees › 554G. Permitted Transfers in Trust › 554G-8 Avoidance of permitted transfers in trust.

§554G-8 Avoidance of permitted transfers in trust.
(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]
2023 Hawaii Revised Statutes › Title 30. Guardians and Trustees › 554G. Permitted Transfers in Trust › 554G-9 Limitations on permitted transfers.

§554G-9 Limitations on permitted transfers.
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]
2023 Hawaii Revised Statutes › Title 30. Guardians and Trustees › 554G. Permitted Transfers in Trust › 554G-11 Multiple transfers.

§554G-11 Multiple transfers.
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]
2023 Hawaii Revised Statutes › Title 30. Guardians and Trustees › 555. Employees Trust › 555-1 Definitions.

§555-1 Definitions.
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]
2023 Hawaii Revised Statutes › Title 30. Guardians and Trustees › 555. Employees Trust › 555-2 Trust not in violation of rule against perpetuities.

§555-2 Trust not in violation of rule against perpetuities.
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]
2023 Hawaii Revised Statutes › Title 30. Guardians and Trustees › 556. Uniform Fiduciaries Act › 556-1 Definition of terms.

§556-1 Definition of terms.
(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]
2023 Hawaii Revised Statutes › Title 30. Guardians and Trustees › 556. Uniform Fiduciaries Act › 556-2 Application of payments made to fiduciaries.

§556-2 Application of payments made to fiduciaries.
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. [L 1945, c 197, §2; RL 1955, §189-2; HRS §556-2]
2023 Hawaii Revised Statutes › Title 30. Guardians and Trustees › 556. Uniform Fiduciaries Act › 556-3 Transfer of negotiable instrument by fiduciary.

§556-3 Transfer of negotiable instrument by fiduciary.
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. [L 1945, c 197, §4; RL 1955, §189-4; HRS §556-3; gen ch 1985]
2023 Hawaii Revised Statutes › Title 30. Guardians and Trustees › 556. Uniform Fiduciaries Act › 556-4 Check drawn by fiduciary payable to third person.

§556-4 Check drawn by fiduciary payable to third person.
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. [L 1945, c 197, §5; RL 1955, §189-5; HRS §556-4; gen ch 1985]
Cross References
Uniform Commercial Code, see chapter 490, article 3.
2023 Hawaii Revised Statutes › Title 30. Guardians and Trustees › 556. Uniform Fiduciaries Act › 556-5 Check drawn by and payable to fiduciary.

§556-5 Check drawn by and payable to fiduciary.
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. [L 1945, c 197, §6; RL 1955, §189-6; HRS §556-5; gen ch 1985]
Cross References
Uniform Commercial Code, see chapter 490, article 3.
2023 Hawaii Revised Statutes › Title 30. Guardians and Trustees › 556. Uniform Fiduciaries Act › 556-6 Deposit in name of fiduciary as such.

§556-6 Deposit in name of fiduciary as such.
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. [L 1945, c 197, §7; RL 1955, §189-7; HRS §556-6; gen ch 1985]
Cross References
Uniform Commercial Code, see chapter 490, articles 3 and 4.
2023 Hawaii Revised Statutes › Title 30. Guardians and Trustees › 556. Uniform Fiduciaries Act › 556-7 Deposit in name of principal.

§556-7 Deposit in name of principal.
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. [L 1945, c 197, §8; RL 1955, §189-8; HRS §556-7; gen ch 1985]
Cross References
Uniform Commercial Code, see chapter 490, articles 3 and 4.
2023 Hawaii Revised Statutes › Title 30. Guardians and Trustees › 556. Uniform Fiduciaries Act › 556-8 Deposit in fiduciary's personal account.

§556-8 Deposit in fiduciary's personal account.
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. [L 1945, c 197, §9; RL 1955, §189-9; HRS §556-8]
Cross References
Uniform Commercial Code, see chapter 490, articles 3 and 4.
2023 Hawaii Revised Statutes › Title 30. Guardians and Trustees › 556. Uniform Fiduciaries Act › 556-9 Deposit in names of two or more trustees.

§556-9 Deposit in names of two or more trustees.
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. [L 1945, c 197, §10; RL 1955, §189-10; HRS §556-9]
2023 Hawaii Revised Statutes › Title 30. Guardians and Trustees › 556. Uniform Fiduciaries Act › 556-10 Cases not provided for in chapter.

§556-10 Cases not provided for in chapter.
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. [L 1945, c 197, §12; RL 1955, §189-11; HRS §556-10]
2023 Hawaii Revised Statutes › Title 30. Guardians and Trustees › 557A. Uniform Principal and Income Act › 557A-102 Definitions.

§557A-102 Definitions.
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]
2023 Hawaii Revised Statutes › Title 30. Guardians and Trustees › 557A. Uniform Principal and Income Act › 557A-103 Fiduciary duties; general principles.

§557A-103 Fiduciary duties; general principles.
(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]
2023 Hawaii Revised Statutes › Title 30. Guardians and Trustees › 557A. Uniform Principal and Income Act › 557A-105 Notice of proposed action.

§557A-105 Notice of proposed action.
(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]
2023 Hawaii Revised Statutes › Title 30. Guardians and Trustees › 557A. Uniform Principal and Income Act › 557A-106 Proceedings regarding trustee's power to adjust.

§557A-106 Proceedings regarding trustee's power to adjust.
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. [L 2000, c 191, pt of §1]
2023 Hawaii Revised Statutes › Title 30. Guardians and Trustees › 557A. Uniform Principal and Income Act › 557A-202 Distribution to residuary and remainder beneficiaries.

§557A-202 Distribution to residuary and remainder beneficiaries.
(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]