Hawaii Revised Statutes 557a. Uniform Principal and Income Act

557a-101 Short Title.
This chapter may be cited as the Uniform Principal and Income Act. [L 2000, c 191, pt of §1]
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...
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,...
557a-104 Trustee's Power to Adjust.
(a) Subject to subsection (b), a trustee may adjust between principal and income to the extent the trustee considers necessary if all of the...
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...
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...

557a-201 Determination and Distribution of Net Income.
After a decedent dies, in the case of an estate, or after an income interest in a trust ends, the following rules apply: (1)...
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...

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...
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...
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...

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...
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...
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...

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...
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...
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,...
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,...

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...
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...
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...
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...
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...
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...
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...
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...

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...
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)...
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...
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...
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...
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...

Last modified: October 27, 2016