reglab/statecodes huggingface dataset:
2023 Hawaii Revised Statutes › Title 30. Guardians and Trustees › 557A. Uniform Principal and Income Act › 557A-301 When right to income begins and ends.

§557A-301 When right to income begins and ends.
(a) An income beneficiary is entitled to net income from the date on which the income interest begins. An income interest begins on the date specified in the terms of the trust or, if no date is specified, on the date an asset becomes subject to a trust or successive income interest.
(b) An asset becomes subject to a trust on the date:
(1) It is transferred to the trust in the case of an asset that is transferred to a trust during the transferor's life;
(2) Of a testator's death in the case of an asset that becomes subject to a trust by reason of a will, even if there is an intervening period of administration of the testator's estate; or
(3) Of an individual's death in the case of an asset that is transferred to a fiduciary by a third party because of the individual's death.
(c) An asset becomes subject to a successive income interest on the day after the preceding income interest ends, as determined under subsection (d), even if there is an intervening period of administration to wind up the preceding income interest.
(d) An income interest ends on the day before an income beneficiary dies or another terminating event occurs. For purposes of this chapter, an income interest also ends on the last day of a period during which there is no beneficiary to whom a trustee may distribute income. [L 2000, c 191, pt of §1]
2023 Hawaii Revised Statutes › Title 30. Guardians and Trustees › 557A. Uniform Principal and Income Act › 557A-302 Apportionment of receipts and disbursements when decedent dies or income interest begins.

§557A-302 Apportionment of receipts and disbursements when decedent dies or income interest begins.
(a) An income receipt or disbursement other than one to which section 557A-201(1) applies shall be allocated to principal if its due date occurs before a decedent dies in the case of an estate or before an income interest begins in the case of a trust or successive income interest.
(b) An income receipt or disbursement shall be allocated to income if its due date occurs on or after the date on which a decedent dies or an income interest begins and it is a periodic due date. An income receipt or disbursement shall be treated as accruing from day to day if its due date is not periodic or it has no due date. The portion of the receipt or disbursement accruing before the date on which a decedent dies or an income interest begins shall be allocated to principal and the balance shall be allocated to income.
(c) An item of income or an obligation is due on the date on which the payor is required to make a payment. If there is no stated payment date, there is no due date for the purposes of this chapter. Distributions to shareholders or other owners from an entity to which section 557A-401 applies are deemed to be due on the date fixed by the entity for determining who is entitled to receive the distribution or, if no date is fixed, on the declaration date for the distribution. A due date is periodic for receipts or disbursements that shall be paid at regular intervals under a lease or an obligation to pay interest or if an entity customarily makes distributions at regular intervals. [L 2000, c 191, pt of §1]
2023 Hawaii Revised Statutes › Title 30. Guardians and Trustees › 557A. Uniform Principal and Income Act › 557A-303 Apportionment when income interest ends.

§557A-303 Apportionment when income interest ends.
(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]
2023 Hawaii Revised Statutes › Title 30. Guardians and Trustees › 557A. Uniform Principal and Income Act › 557A-401 Character of receipts.

§557A-401 Character of receipts.
(a) As used in this section, "entity" means a corporation, partnership, joint venture, limited liability company, regulated investment company, real estate investment trust, common trust fund, and any other organization in which a trustee has an interest other than a trust or estate to which section 557A-402 applies or a business or activity to which section 557A-403 applies, or an asset-backed security to which section 557A-415 applies.
(b) Except as otherwise provided in this section, money received by a trustee from an entity shall be allocated to income.
(c) Receipts from an entity that shall be allocated to principal include:
(1) Property other than money;
(2) Money received in one distribution or a series of related distributions in exchange for part or all of a trust's interest in the entity;
(3) Money received in total or partial liquidation of the entity; and
(4) Money received from an entity that is a regulated investment company or a real estate investment trust if the money distributed is a capital gain dividend for federal income tax purposes.
(d) Money is received in partial liquidation:
(1) To the extent that the entity, at or near the time of a distribution, indicates that it is a distribution in partial liquidation; or
(2) If the total amount of money or property received in a distribution or series of related distributions is greater than twenty per cent of the entity's gross assets, as shown by the entity's year-end financial statements immediately preceding the initial receipt.
(e) Money shall not be received in partial liquidation, nor shall it be taken into account under subsection (d)(2), to the extent that it does not exceed the amount of income tax that a trustee or beneficiary is required to pay on taxable income of the entity that distributes the money.
(f) A trustee may rely upon a statement made by an entity about the source or character of a distribution if the statement is made at or near the time of distribution by the entity's board of directors or other person or group of persons authorized to exercise powers to pay money or transfer property comparable to those of a corporation's board of directors. [L 2000, c 191, pt of §1]
2023 Hawaii Revised Statutes › Title 30. Guardians and Trustees › 557A. Uniform Principal and Income Act › 557A-402 Distribution from trust or estate.

§557A-402 Distribution from trust or estate.
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. [L 2000, c 191, pt of §1]
2023 Hawaii Revised Statutes › Title 30. Guardians and Trustees › 557A. Uniform Principal and Income Act › 557A-403 Business and other activities conducted by trustee.

§557A-403 Business and other activities conducted by trustee.
(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]
2023 Hawaii Revised Statutes › Title 30. Guardians and Trustees › 557A. Uniform Principal and Income Act › 557A-404 Principal receipts.

§557A-404 Principal receipts.
The following shall be allocated to principal:
(1) To the extent not allocated to income under this chapter, assets received from a:
(A) Transferor during the transferor's lifetime;
(B) Decedent's estate;
(C) Trust with a terminating income interest; or
(D) Payor pursuant to a contract naming the trust or its trustee as beneficiary;
(2) Money or other property received from the sale, exchange, liquidation, or change in form of a principal asset, including realized profit, subject to this article;
(3) Amounts recovered from third parties to reimburse the trust because of disbursements described in section 557A-502(a)(7) or for other reasons to the extent not based on the loss of income;
(4) Proceeds of property taken by eminent domain, but a separate award made for the loss of income with respect to an accounting period during which a current income beneficiary had a mandatory income interest shall be classified as income;
(5) Net income received in an accounting period during which there is no beneficiary to whom a trustee may or shall distribute income; and
(6) Other receipts as provided in part III. [L 2000, c 191, pt of §1]
2023 Hawaii Revised Statutes › Title 30. Guardians and Trustees › 557A. Uniform Principal and Income Act › 557A-405 Rental property.

§557A-405 Rental property.
To the extent that a trustee accounts for receipts from rental property pursuant to this section, an amount received as rent of real or personal property, including an amount received for cancellation or renewal of a lease, shall be allocated to income. An amount received as a refundable deposit, including a security deposit or a deposit that is to be applied as rent for future periods, shall be added to principal and held subject to the terms of the lease and shall not be available for distribution to a beneficiary until the trustee's contractual obligations have been satisfied with respect to that amount. [L 2000, c 191, pt of §1]
2023 Hawaii Revised Statutes › Title 30. Guardians and Trustees › 557A. Uniform Principal and Income Act › 557A-406 Obligation to pay money.

§557A-406 Obligation to pay money.
(a) An amount received as interest, whether determined at a fixed, variable, or floating rate, on an obligation to pay money to the trustee, including an amount received as consideration for prepaying principal, shall be allocated to income without any provision for amortization of premium.
(b) An amount received from the sale, redemption, or other disposition of an obligation to pay money to the trustee more than one year after it is purchased or acquired by the trustee, including an obligation whose purchase price or value when it is acquired is less than its value at maturity, shall be allocated to principal. If the obligation matures within one year after it is purchased or acquired by the trustee, an amount received in excess of its purchase price or its value when acquired by the trust shall be allocated to income.
(c) This section shall not apply to obligations to which sections 557A-409 through 557A-412, 557A-414, and 557A-415 apply. [L 2000, c 191, pt of §1]
2023 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]
2023 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]
2023 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]
2023 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]
2023 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".
2023 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".
2023 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]
2023 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]
2023 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]
2023 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).
2023 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).
2023 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]
2023 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]
2023 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]
2023 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]
2023 Hawaii Revised Statutes › Title 30. Guardians and Trustees › 558. Land Trusts--Beneficiary Controlled › 558-2 Purpose.

§558-2 Purpose.
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. [L 1978, c 151, pt of §1]
2023 Hawaii Revised Statutes › Title 30. Guardians and Trustees › 558. Land Trusts--Beneficiary Controlled › 558-3 Definitions.

§558-3 Definitions.
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]
2023 Hawaii Revised Statutes › Title 30. Guardians and Trustees › 558. Land Trusts--Beneficiary Controlled › 558-4 Creation of trust, powers of trustee.

§558-4 Creation of trust, powers of trustee.
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. [L 1978, c 151, pt of §1; am L 1982, c 127, §1]
2023 Hawaii Revised Statutes › Title 30. Guardians and Trustees › 558. Land Trusts--Beneficiary Controlled › 558-5 Inquiry into authority of trustee.

§558-5 Inquiry into authority of trustee.
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. [L 1978, c 151, pt of §1]
2023 Hawaii Revised Statutes › Title 30. Guardians and Trustees › 558. Land Trusts--Beneficiary Controlled › 558-6 Conveyance by trustee.

§558-6 Conveyance by trustee.
Any person dealing with the trustee under the recorded instrument shall take any interest transferred by the trustee free and clear of the claims of all the beneficiaries of the trust, and of any unrecorded separate declarations or agreements collateral to the recorded instrument whether referred to in the recorded instrument or not, and of anyone claiming by, through or under such beneficiaries including, and without limiting the foregoing to, any claim arising out of any dower or curtesy interest of the spouse of any beneficiary thereof; provided that nothing herein contained shall prevent the beneficiary of any unrecorded collateral declarations or agreements from enforcing the terms of the unrecorded collateral declarations or agreements against the trustee. [L 1978, c 151, pt of §1; am L 1980, c 232, §26]
2023 Hawaii Revised Statutes › Title 30. Guardians and Trustees › 558. Land Trusts--Beneficiary Controlled › 558-7 Personal property.

§558-7 Personal property.
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 shall become an issue under the laws or in the courts of this State. [L 1978, c 151, pt of §1]
2023 Hawaii Revised Statutes › Title 30. Guardians and Trustees › 558. Land Trusts--Beneficiary Controlled › 558-8 Disclosure of beneficiaries.

§558-8 Disclosure of beneficiaries.
(a) Any trust created hereunder shall be invalid unless the recorded conveyance document transferring title to the trustee discloses the name and pro rata interest of each beneficiary of such trust.
(b) Upon service of a complaint, or similar pleading, in federal or state court to which the trustee is required to respond, the trustee shall disclose in the response the name of every beneficiary with a present interest in trust property which is a subject of the action. This subsection shall be liberally construed to require identification of the actual parties to the controversy.
(c) Upon receipt of a notice of violation of any ordinance, rule, regulation, or law relating to real property held in trust, the trustee shall disclose to the State, political subdivision, or agency giving notice or which is primarily responsible for enforcement of such ordinance, rule, regulation, or law, the identity of every beneficiary who has an interest in the trust property. This subsection shall be liberally construed to require identification of the actual parties who are being notified of the violation.
(d) As part of any contract relating to the ownership or use of real property which is the subject of a land trust and is entered into by and between the State or any local governmental unit or any agency of either and a trustee under a land trust, the trustee shall disclose the identity of every beneficiary of the land trust. This subsection shall be liberally construed to require identification of the actual parties benefiting from a transaction with a governmental unit or agency.
(e) Whenever any trustee or beneficiary of a land trust applies or supports an application to the State or any local governmental unit or any agency of either for any benefit, authorization, license, land use or permit relating to the land which is the subject of the land trust, such application shall identify every beneficiary of the land trust. This subsection shall be liberally construed to require identification of the actual parties benefiting from the actions of governmental units and agencies.
(f) A trustee who discloses the identity of a beneficiary pursuant to law shall not be liable in any civil action as a result of the disclosure. [L 1978, c 151, pt of §1; am L 1982, c 127, §2]
2023 Hawaii Revised Statutes › Title 30A. Uniform Probate Code › 560. Uniform Probate Code › 560:1-101 to 560:1-403 REPEALED. §560:1-101

§ §560:1-101 to 560:1-403 REPEALED.
L 1996, c 288, pt of §6.
ARTICLE I
GENERAL PROVISIONS, DEFINITIONS, AND
PROBATE JURISDICTION OF COURT
Cross References
Effect and transition of L 1996, c 288 amendments, see §560:8-201.
PART 1. SHORT TITLE, CONSTRUCTION, GENERAL PROVISIONS
§560:1-101
Short title.
This chapter shall be known and may be cited as the Uniform Probate Code. [L 1996, c 288, pt of §1]
2023 Hawaii Revised Statutes › Title 30A. Uniform Probate Code › 560. Uniform Probate Code › 560:1-102 Purposes; rule of construction.

§560:1-102
Purposes; rule of construction.
(a) This chapter shall be liberally construed and applied to promote its underlying purposes and policies.
(b) The underlying purposes and policies of this chapter are to:
(1) Simplify and clarify the law concerning the affairs of decedents, missing persons, protected persons, minors and incapacitated persons;
(2) Discover and make effective the intent of a decedent in distribution of the decedent's property;
(3) Promote a speedy and efficient system for liquidating the estate of the decedent and making distribution to the decedent's successors;
(4) Facilitate use and enforcement of certain trusts; and
(5) Make uniform the law among the various jurisdictions. [L 1996, c 288, pt of §1]
2023 Hawaii Revised Statutes › Title 30A. Uniform Probate Code › 560. Uniform Probate Code › 560:1-103 Supplementary general principles of law applicable.

§560:1-103 Supplementary general principles of law applicable.
Unless displaced by the particular provisions of this chapter, the principles of law and equity supplement its provisions. [L 1996, c 288, pt of §1]
Case Notes
As no "particular provision" in chapter 560 displaces a right of access to probate proceedings and records, third parties have a right to file petitions challenging the closure of probate court proceedings or the sealing of court records under a principle of law supplementing the probate code. 106 H. 453, 106 P.3d 1096 (2005).
2023 Hawaii Revised Statutes › Title 30A. Uniform Probate Code › 560. Uniform Probate Code › 560:1-104 Severability.

§560:1-104 Severability.
If any provision of this chapter or the application thereof to any person or circumstances is held invalid, the invalidity shall not affect other provisions or applications of the chapter which can be given effect without the invalid provision or application, and to this end the provisions of this chapter are declared to be severable. [L 1996, c 288, pt of §1]
2023 Hawaii Revised Statutes › Title 30A. Uniform Probate Code › 560. Uniform Probate Code › 560:1-105 Construction against implied repeal.

§560:1-105 Construction against implied repeal.
This chapter is a general act intended as a unified coverage of its subject matter and no part of it shall be deemed impliedly repealed by subsequent legislation if it can reasonably be avoided. [L 1996, c 288, pt of §1]
2023 Hawaii Revised Statutes › Title 30A. Uniform Probate Code › 560. Uniform Probate Code › 560:1-106 Effect of fraud and evasion.

§560:1-106 Effect of fraud and evasion.
Whenever fraud has been perpetrated in connection with any proceeding or in any statement filed under this chapter or if fraud is used to avoid or circumvent the provisions or purposes of this chapter, any person injured thereby may obtain appropriate relief against the perpetrator of the fraud or restitution from any person (other than a bona fide purchaser) benefitting from the fraud, whether innocent or not. Any proceeding must be commenced within two years after the discovery of the fraud, but no proceeding may be brought against one not a perpetrator of the fraud later than five years after the time of commission of the fraud. This section has no bearing on remedies relating to fraud practiced on a decedent during the decedent's lifetime which affects the succession of the decedent's estate. [L 1996, c 288, pt of §1]