HI HB1853

Waives the trustee's duty to diversify trust assets when a trust provision directs the retention of any property, except in cases of willful misconduct.

Requires a dissenting trustee to dissent in writing before a transaction is completed or to a failure to act or enter into a transaction in a reasonably timely manner.

Allows a settlor to designate investment decisions entirely to an investment advisor while assigning administrative functions to a separate administrative trustee, creating "directed trusts."

Protects fiduciaries from liability when following an advisor's direction, provided the advisor was appointed by the settlor and the trustee has dissented in writing or is not required to dissent under specified conditions.

Effective July 1, 2014; intended to make Hawaii competitive with 34 other states that allow directed trusts and retain trust business within the state.