HI SB1249

Clarifies trustee compensation under Hawaii law by establishing a predictable fee structure to reduce disputes and litigation between beneficiaries and trustees.

Individual trustees receive 1% of gross fair market value upon trust inception and upon termination, plus annual compensation based on tiered percentages of principal assets (0.5% on first $5M, 0.33% on next $3M, 0.2% on next $2M, 0.1% on amounts over $10M).

Individual trustees receive 5% annual compensation on trust income (rents, interest, dividends) with a minimum total annual compensation of $3,000.

Banks and trust companies serving as trustees may charge reasonable compensation according to published fee schedules with advance written notice of any amendments.

Special service fees may be approved by court for specific services like real estate sales, tax preparation, or litigation, provided all beneficiaries agree to waive court approval requirement.

Effective January 1, 2015, and applies to both existing and new trusts except charitable trusts.