REPORT TITLE:
Trustees, Compensation


DESCRIPTION:
Puts reasonable cap on trustee compensation.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        
THE SENATE                              S.B. NO.           2236
TWENTIETH LEGISLATURE, 2000                                
STATE OF HAWAII                                            
                                                             
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                   A  BILL  FOR  AN  ACT

RELATING TO TRUSTEES.
 


BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 1      SECTION 1.  Section 607-18, Hawaii Revised Statutes, is
 
 2 amended by amending subsections (a) and (b) to read as follows:
 
 3      "(a)  Upon all moneys and other property received in the
 
 4 nature of revenue or income of the estate, such as rents,
 
 5 interest, dividends, and general profits, trustees, except
 
 6 trustees of a charitable trust, shall be allowed as commissions
 
 7 payable out of the income received during each year, seven per
 
 8 cent for the first $5,000 and five per cent for all over $5,000
 
 9 the commissions to be payable as and when the income is received,
 
10 but not more often than once a year.  The total amount of
 
11 compensation shall be an amount that is reasonable under the
 
12 circumstances.
 
13      (b)  Upon the principal of the estate, trustees shall be
 
14 allowed as commissions one per cent on the value at the inception
 
15 of the trust payable at the inception out of the principal, one
 
16 per cent on the value of all or any part of the estate upon final
 
17 distribution payable at the termination out of the principal, and
 
18 two and one-half per cent upon all cash principal received after
 
19 the inception of the trust and neither being nor representing
 

 
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                                     S.B. NO.           2236
                                                        
                                                        

 
 1 principal upon which the two and one-half per cent has previously
 
 2 at any time been charged, payable at the receipt out of the
 
 3 principal, and two and one-half per cent upon the final payment
 
 4 of any cash principal prior to the termination of the trust,
 
 5 payable at the final payment out of the principal, and in
 
 6 addition thereto five-tenths of one per cent on the value at the
 
 7 expiration of each year during the continuance of the trust
 
 8 payable annually out of the principal; provided that such five-
 
 9 tenths of one per cent on the principal shall not apply to
 
10 charitable trusts, nor to the extent the trustee has employed
 
11 others to perform bookkeeping and clerical services at the
 
12 expense of the estate as permitted by the trust document or as
 
13 provided in section 554A-3.  The total amount of compensation
 
14 shall be limited to an amount that is reasonable under the
 
15 circumstances."
 
16      SECTION 2.  New statutory material is underscored.
 
17      SECTION 3.  This Act shall take effect upon its approval.
 
18 
 
19                           INTRODUCED BY:_________________________