§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]
Structure Hawaii Revised Statutes
Title 30. Guardians and Trustees
557A. Uniform Principal and Income Act
557A-103 Fiduciary duties; general principles.
557A-104 Trustee's power to adjust.
557A-105 Notice of proposed action.
557A-106 Proceedings regarding trustee's power to adjust.
557A-201 Determination and distribution of net income.
557A-202 Distribution to residuary and remainder beneficiaries.
557A-301 When right to income begins and ends.
557A-302 Apportionment of receipts and disbursements when decedent dies or income interest begins.
557A-303 Apportionment when income interest ends.
557A-401 Character of receipts.
557A-402 Distribution from trust or estate.
557A-403 Business and other activities conducted by trustee.
557A-406 Obligation to pay money.
557A-407 Insurance policies and similar contracts.
557A-408 Insubstantial allocations not required.
557A-409 Deferred compensation, annuities, and similar payments.
557A-411 Minerals, water, and other natural resources.
557A-413 Property not productive of income.
557A-414 Derivatives and options.
557A-415 Asset-backed securities.
557A-501 Disbursements from income.
557A-502 Disbursements from principal.
557A-503 Transfers from income to principal for depreciation.
557A-504 Transfers from income to reimburse principal.
557A-506 Adjustments between principal and income because of taxes.