HI HB2368

Imposes a 50-year maximum duration limit for new private, noncharitable trusts created on or after January 1, 2027, after which assets must be distributed outright to beneficiaries, transferred to a successor entity, or liquidated

Prohibits extensions of trust duration through asset transfers to new trusts, term modifications, or mergers that would exceed the 50-year limit

Requires large private trusts (asset threshold to be set by DCCA rule) to file annual confidential reports with the Department of Commerce and Consumer Affairs disclosing total asset value, beneficiary categories, duration provisions, and distributions to nonresident beneficiaries

Restricts self-settled asset protection trusts from shielding transferors from tax obligations, court-ordered obligations, or debts owed to Hawaii residents, with civil penalties up to $25,000 per year for noncompliance

Exempts charitable trusts, alii trusts, Native-serving trusts, educational trusts, conservation trusts, employee benefit plans, and community foundations from the new restrictions