SB 385 Summary

• Enacts the 2018 Uniform Trust Code as a comprehensive new chapter in Hawaii law, consolidating and modernizing trust law in the state with standardized provisions for trust creation, administration, and enforcement.

• Provides clearer rules for trustee duties, beneficiary rights, trust modification and termination, creditor claims, and spendthrift provisions, reducing litigation complexity and allowing nonjudicial settlement of trust disputes.

• Repeals prior trust-related statutes including the Uniform Trustees' Powers Act, Uniform Prudent Investor Act, and related provisions in the Uniform Probate Code (chapters 554A, 554C, and article VII of chapter 560).

• Establishes uniform standards for trustee conduct including loyalty, impartiality, prudence, and disclosure duties, while protecting third parties dealing with trustees in good faith.

• Effective January 1, 2022.