554B-2 Custodial trust; general. (a) A person may create a custodial trust of property by transfer evidenced by registration or other written instrument of transfer to another in any manner consistent with law, naming an individual, who may be the transferor or another, as beneficiary, in which the transferee is designated, in substance, as custodial trustee under the Hawaii Uniform Custodial Trust Act.

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

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

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

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

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

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

(h) This chapter does not restrict other means of creating trusts. A trust whose terms do not conform to this chapter may be valid and enforceable according to its terms under other law. [L 1989, c 76, pt of 1; am L 2004, c 161, 36]

 

 

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