[§554G-2]  Definitions.  As used in this chapter:

     "Cash" means United States currency.

     "Claim" means a right to payment, whether or not the right is reduced to judgment, liquidated, unliquidated, fixed, contingent, matured, unmatured, disputed, undisputed, legal, equitable, secured, or unsecured.

     "Creditor" means, with respect to a transferor, a person who has a claim.

     "Debt" means liability on a claim.

     "Former spouse" means a person to whom the transferor was married where the marriage was dissolved before the time of the permitted transfer.

     "Grantor trust" means a trust described in sections 671 through 679 of the Internal Revenue Code of 1986, as amended.

     "Marketable securities" means securities that are:

     (1)  Exchanged on a governmentally regulated exchange within the United States including, common stocks, bonds, mutual funds, or exchange traded funds; and

     (2)  Permitted to be held by a fiduciary under Hawaii state law;

provided that "marketable securities" does not include real estate or any interests in corporations, partnerships, and limited liability companies that are not publicly traded.

     "Non-grantor trust" shall refer to any trust that is not a "grantor trust" as defined in this chapter.

     "Permitted property" means cash, marketable securities, life insurance contracts, and non-private annuities.

     "Permitted transfer" means a transfer of permitted property by or from a transferor to a permitted trustee by means of a trust instrument, regardless of whether consideration is exchanged.

     "Permitted trustee" means a person, other than the transferor, who is a resident of this State, or a bank or trust company authorized to do business in this State that possesses and exercises trust powers and has its principal place of business in this State.

     "Person" means a natural person.

     "Spouse" means a person to whom the transferor is married at the time of the permitted transfer.

     "Transfer" means the disposition, conveyance, or assignment of permitted property to a permitted trustee or the exercise of a power that causes the disposition, conveyance, or assignment of permitted property to a permitted trustee.

     "Transfer tax" means the tax described in section 554G-12.

     "Transferor" means an owner of permitted property; a holder of a power of appointment that authorizes the holder to appoint in favor of the holder, the holder's creditors, the holder's estate, or the creditors of the holder's estate; or a trustee who directly or indirectly makes a disposition of permitted property.

     "Trust instrument" means an irrevocable instrument appointing a permitted trustee for the permitted property that is the subject of a disposition. [L 2010, c 182, pt of §2]