STAND. COM. REP. NO. 503-00

                                 Honolulu, Hawaii
                                                   , 2000

                                 RE: H.B. No. 2646
                                     H.D. 1




Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committee on Judiciary and Hawaiian Affairs, to which
was referred H.B. No. 2646 entitled: 

     "A BILL FOR AN ACT RELATING TO TRUSTS AND ESTATES,"

begs leave to report as follows:

     The purpose of this bill is to amend the Uniform Trustees'
Powers Act (chapter 554A, Hawaii Revised Statutes) and the Hawaii
Probate Code (chapter 560, Hawaii Revised Statutes) by:

     (1)  Expressly stating that trustees have the power to
          divide or sever a single trust into two or more
          separate trusts for administrative or tax purposes;

     (2)  Extending antilapse provisions applicable to wills to
          revocable living trusts that provide for distribution
          of trust assets to designated beneficiaries upon the
          settlor's death (rather than remaining in trust for
          their benefit);

     (3)  Rendering more consistent the law governing provisions
          in wills and trusts that attempt to penalize a person
          who brings a challenge;

     (4)  Allowing a fiduciary to petition the court for an order
          allowing immediate transfer of unclaimed assets to the
          State Director of Finance; 


 
 
 
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                                 Page 2

 
     (5)  Addressing apportionment of expenses incurred in
          connection with the determination of the amount of
          estate taxes;

     (6)  Increasing the amount of estate assets that can be
          collected by affidavit; and

     (7)  Increasing the value of the assets that can be
          administered by the clerk of the court as a small
          estate. 

     Testimony in support of this bill was provided by the
Judiciary, State of Hawaii, and the Committee on the Uniform
Probate Code and Probate Court Practices.  The State of Hawaii
Department of Taxation provided testimony taking no position on
this bill.

     Your Committee finds this bill will assist fiduciaries in
the performance of their duties, bring consistent treatment to
wills and trusts, where appropriate, and help streamline
procedures for estates that do not exceed $100,000 in value.
 
     Your Committee has amended this bill by increasing the upper
limit on the value of a decedent's estate administered by the
clerk of the circuit court pursuant to section 560:3-1212, Hawaii
Revised Statutes (estates of persons leaving no known relatives),
to conform with changes made in sections 6, 7, and 8 of this
bill.

     As affirmed by the record of votes of the members of your
Committee on Judiciary and Hawaiian Affairs that is attached to
this report, your Committee is in accord with the intent and
purpose of H.B. No. 2646, as amended herein, and recommends that
it pass Second Reading in the form attached hereto as H.B. No.
2646, H.D. 1, and be placed on the calendar for Third Reading.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Judiciary &
                                   Hawaiian Affairs,



                                   ______________________________
                                   ERIC G. HAMAKAWA, Chair