(a) A custodial trust terminates on the custodial trustee‘s receipt of a signed written direction of the beneficiary, if not incapacitated within section 554B-10, or of the beneficiary‘s conservator, if any, or upon the beneficiary’s death. Upon termination, the custodial trustee shall transfer the unexpended custodial trust property:

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Terms Used In Hawaii Revised Statutes 554B-17

  • Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. Source: OCC
  • Beneficiary: means an individual for whom property has been delivered to a custodial trustee for the individual's use and benefit under this chapter. See Hawaii Revised Statutes 554B-1
  • Conservator: means a person appointed or qualified by a court to manage the estate of an individual or a person legally authorized to perform substantially the same functions. See Hawaii Revised Statutes 554B-1
  • Custodial trust property: means an interest in property transferred to a custodial trustee under this chapter and the income from and proceeds of that interest. See Hawaii Revised Statutes 554B-1
  • Custodial trustee: means a person designated as trustee of a custodial trust under this chapter and includes a substitute or successor custodial trustee. See Hawaii Revised Statutes 554B-1
  • Incapacitated: means that an individual lacks the ability to manage property and business affairs effectively by reason of mental illness, mental deficiency, physical illness or disability, chronic use of drugs, chronic intoxication, confinement, detention by a foreign power, disappearance, minority, or other cause. See Hawaii Revised Statutes 554B-1
  • Trustee: A person or institution holding and administering property in trust.
(1) To the beneficiary, if not incapacitated;
(2) To the conservator or other court-designated recipient for an incapacitated beneficiary; or
(3) Upon the beneficiary’s death, in the following order:

(A) As last directed in a writing signed by the deceased beneficiary who was at the time not incapacitated and received by the custodial trustee during the life of the deceased beneficiary;
(B) To the survivor of multiple beneficiaries when survivorship is provided pursuant to section 554B-6;
(C) As designated in the custodial trust instrument; or
(D) To the estate of the deceased beneficiary.
(b) If, when the custodial trust would otherwise terminate, the distributee is incapacitated, the custodial trust continues for the benefit of the distributee as beneficiary until the incapacity is removed or the custodial trust is terminated by the distributee’s conservator.
(c) The death of a beneficiary does not terminate the power of the custodial trustee to discharge obligations of the custodial trustee or beneficiary incurred before the termination of the custodial trust.

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