REVOCABLE LIVING TRUST AGREEMENT

(State of Hawai‘i)

TABLE OF CONTENTS

1. Document Header
2. Definitions
3. Operative Provisions
   3.1 Creation and Funding
   3.2 Grantor’s Reserved Rights
   3.3 Lifetime Administration & Distributions
   3.4 Incapacity of Grantor
   3.5 Death of Grantor
4. Representations & Warranties
5. Covenants & Restrictions
6. Default & Remedies
7. Risk Allocation
8. Dispute Resolution
9. General Provisions
10. Execution Block
11. Schedule A – Description of Trust Estate

1. DOCUMENT HEADER

REVOCABLE LIVING TRUST AGREEMENT (“Agreement”) made and entered into on [EFFECTIVE DATE] (“Effective Date”) by and between:

• [FULL LEGAL NAME OF GRANTOR], an individual residing at [ADDRESS] (“Grantor”); and
• [FULL LEGAL NAME OF INITIAL TRUSTEE], whose principal address is [ADDRESS] (“Trustee”).

Collectively, Grantor and Trustee are the “Parties.”

Recitals

A. Grantor desires to create a revocable trust under the laws of the State of Hawai‘i to hold and manage certain property during Grantor’s lifetime and to provide for the orderly disposition thereof upon Grantor’s death.
B. Trustee is willing to accept the trust created hereby and to administer the Trust Estate in accordance with the terms of this Agreement.
C. Grantor, under the authority granted by Hawai‘i trust law, hereby declares that all property titled in the name of the Trustee, as such, shall be held, administered, and distributed pursuant to this Agreement.

NOW, THEREFORE, in consideration of the mutual promises and covenants herein, the Parties agree as follows:

2. DEFINITIONS

The following capitalized terms have the meanings set forth below. Terms defined in the singular include the plural and vice-versa. Cross-references are to Sections of this Agreement unless otherwise indicated.

“Accounting Period” – Each calendar year ending December 31, or such other period selected by the Trustee in writing.

“Affiliate” – Any person or entity directly or indirectly controlling, controlled by, or under common control with another specified person.

“Beneficiary” or “Beneficiaries” – The persons entitled to current or future distributions of income or principal as provided herein.

“Code” – The Internal Revenue Code of 1986, as amended.

“Disability” – Grantor’s incapacity as certified in a written statement by two licensed physicians, at least one of whom is not related to the Grantor by blood or marriage.

“Grantor” – The person identified in the Document Header, including any additional Grantor who executes a Joinder Agreement.

“Protected Person” – A Beneficiary who is a minor, incapacitated, or subject to a spendthrift restriction under Section 5.4.

“Schedule A” – The written schedule attached hereto describing property initially constituting the Trust Estate.

“Successor Trustee” – A trustee appointed in accordance with Section 3.1.3 to serve upon the resignation, removal, incapacity, or death of the then-acting Trustee.

“Trust” or “Trust Estate” – All property, real or personal, tangible or intangible, now or hereafter subject to this Agreement, together with all reinvestments thereof.

3. OPERATIVE PROVISIONS

3.1 Creation and Funding

3.1.1 Establishment. Grantor hereby establishes the “[GRANTOR NAME] Revocable Living Trust,” effective as of the Effective Date.
3.1.2 Initial Funding. Contemporaneously with the execution of this Agreement, Grantor assigns, conveys, and delivers to Trustee the property described in Schedule A.
3.1.3 Additional Funding. Grantor (or Grantor’s personal representative) may at any time add property to the Trust Estate by appropriate written assignment, deed, or beneficiary designation.

[// GUIDANCE: Hawaii law does not require court approval for funding transfers; however, title documents (e.g., deeds, stock powers) must be executed consistent with state recording and transfer statutes.]

3.2 Grantor’s Reserved Rights

a. Revocation. Grantor may revoke this Trust, in whole or in part, by a signed written instrument delivered to the Trustee during Grantor’s lifetime.
b. Amendment. Grantor may amend this Trust by a signed written instrument delivered to the Trustee; provided, amendments shall not impose duties on the Trustee without the Trustee’s written consent.
c. Withdrawal. Grantor may direct the Trustee to distribute any part or all of the Trust Estate to or for Grantor’s benefit at any time.

3.3 Lifetime Administration & Distributions

a. Discretionary Distributions. During Grantor’s lifetime and while not Disabled, Trustee shall distribute to Grantor so much of the net income and principal as Grantor may request in writing.
b. Default Standard. Absent Grantor’s direction, Trustee may distribute for Grantor’s health, education, maintenance, and support (“HEMS”).

3.4 Incapacity of Grantor

a. Determination of Disability. Disability shall be determined as defined in Section 2.
b. Administration During Disability. During any period of Disability, Trustee shall apply or expend income and principal for Grantor’s HEMS, taking into account all other resources.
c. Accountings. Trustee shall provide annual accountings to the Successor Trustee (if any) and to Grantor’s court-appointed conservator, if applicable.

3.5 Death of Grantor

Upon Grantor’s death, the Trust shall become irrevocable. Trustee shall:
a. Pay from the Trust Estate all enforceable debts, expenses, and taxes attributable to the Trust or directed by Grantor’s Last Will and Testament.
b. Allocate and distribute the remaining Trust Estate in accordance with [ATTACHMENT 1 – Dispositive Provisions] or, if none, equally to the Beneficiaries named in [PLACEHOLDER: BENEFICIARY SCHEDULE].

[// GUIDANCE: Insert detailed dispositive scheme or attach separate Article.]

4. REPRESENTATIONS & WARRANTIES

4.1 Grantor
a. Full Capacity. Grantor is of legal age and sound mind.
b. Ownership. Grantor owns, free of adverse claim, all property transferred to the Trust, except as disclosed on Schedule A.

4.2 Trustee
a. Eligibility. Trustee is qualified and not disqualified under Hawai‘i law to serve as trustee.
b. Acceptance. By executing this Agreement, Trustee accepts the Trust upon the terms herein and warrants familiarity with fiduciary obligations.

Survival. The representations and warranties herein shall survive execution and continue for the duration of the Trust.

5. COVENANTS & RESTRICTIONS

5.1 Standard of Care. Trustee shall administer the Trust as a prudent person would, consistent with Hawai‘i’s prudent investor rule.

5.2 Accountings. Trustee shall render annual written accountings to the Grantor (or, after Grantor’s death, to all current Beneficiaries).

5.3 Tax Matters.
a. Grantor Trust Status. During Grantor’s lifetime, the Trust shall be treated as a grantor trust under Subpart E of Subchapter J, allowing Grantor to report all Trust income on Grantor’s individual return.
b. Tax Identification. Trustee shall utilize Grantor’s Social Security number until the Trust becomes irrevocable.

5.4 Spendthrift Provision. No Beneficiary may voluntarily or involuntarily transfer, assign, or encumber such Beneficiary’s interest prior to actual distribution by the Trustee.

5.5 Notice & Cure. Trustee shall notify affected parties of any breach of covenant within ten (10) calendar days; the breaching party shall have thirty (30) calendar days to cure.

6. DEFAULT & REMEDIES

6.1 Events of Default
a. Trustee’s breach of fiduciary duty or material violation of this Agreement.
b. Failure to provide required accountings within forty-five (45) days after written request.

6.2 Remedies
a. Removal. A majority in interest of the adult Beneficiaries, or a court of competent jurisdiction, may remove the Trustee upon written notice citing the default.
b. Appointment of Successor Trustee. Upon removal, resignation, or incapacity of Trustee, [NAME OF SUCCESSOR TRUSTEE] shall serve; if unable, the adult Beneficiaries may appoint a corporate fiduciary having trust powers in Hawai‘i.
c. Damages. Trustee shall be liable for damages proximately caused by a breach, limited as set forth in Section 7.2.

6.3 Attorneys’ Fees. In any action to enforce this Trust, the prevailing party shall be entitled to reasonable attorneys’ fees and costs from the non-prevailing party or, if the Trustee is prevailing, from the Trust Estate.

7. RISK ALLOCATION

7.1 Indemnification

To the fullest extent permitted by law, the Trustee (and all Successor Trustees) shall be indemnified and held harmless out of the Trust Estate against any and all claims, liabilities, and expenses arising from the administration of the Trust, except for acts involving willful misconduct or gross negligence.

7.2 Limitation of Liability

The personal liability of the Trustee is limited to the value of the Trust assets under the Trustee’s control at the time the liability is determined. The Trustee shall not be personally liable for any predecessor’s acts or omissions.

7.3 Insurance

Trustee may, at Trust expense, procure fiduciary liability insurance with commercially reasonable coverage limits.

7.4 Force Majeure

Trustee shall not be deemed in breach for failing to act when such failure results from events beyond Trustee’s reasonable control, including but not limited to natural disasters, governmental actions, or widespread financial institution failures.

8. DISPUTE RESOLUTION

8.1 Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Hawai‘i, without regard to conflict-of-laws principles.

8.2 Forum Selection. Exclusive jurisdiction and venue for all proceedings relating to the Trust shall lie in the [COUNTY] Circuit Court, Probate Division, State of Hawai‘i (the “State Probate Court”).

8.3 Optional Arbitration. Notwithstanding Section 8.2, the Parties may mutually agree in writing to submit a dispute to binding arbitration administered by the American Arbitration Association in Honolulu, Hawai‘i.

8.4 Jury Waiver. To the extent a matter is heard in the State Probate Court, all Parties waive any right to trial by jury in such proceeding.

8.5 Injunctive Relief. Nothing herein shall limit the State Probate Court’s power to grant temporary, preliminary, or permanent injunctive relief to protect the Trust or enforce fiduciary duties.

9. GENERAL PROVISIONS

9.1 Amendment & Revocation. As set forth in Section 3.2.
9.2 No Assignment. Beneficiaries may not assign rights hereunder except as expressly permitted by Section 5.4.
9.3 Successors & Assigns. This Agreement binds and benefits the Parties and their respective successors, personal representatives, and assigns.
9.4 Severability. If any provision is held invalid, the remaining provisions shall remain in full force.
9.5 Entire Agreement. This Agreement, together with Schedule A and any duly-executed amendments, constitutes the entire agreement of the Parties regarding the Trust.
9.6 Counterparts. This Agreement may be executed in multiple counterparts, each deemed an original and all constituting one instrument.
9.7 Electronic Signatures. Signatures transmitted via facsimile, PDF, or compliant e-signature platform shall be effective.

10. EXECUTION BLOCK

IN WITNESS WHEREOF, the Parties have executed this Agreement as of the Effective Date.

Notary Acknowledgment

State of Hawai‘i  )
          ) ss.
[COUNTY] )

On this _ day of _, 20__, before me personally appeared [GRANTOR NAME] and [TRUSTEE NAME], personally known to me (or proved on the basis of satisfactory evidence) to be the individuals whose names are subscribed to the within instrument, and acknowledged that they executed the same for the purposes therein contained.

Notary Public, State of Hawai‘i
My commission expires: ____

[// GUIDANCE: Hawai‘i recording statutes require notarization for any deeded real property; attach separate notarial certificate if additional signatures are required.]

11. SCHEDULE A – DESCRIPTION OF TRUST ESTATE

[PLACEHOLDER: Insert detailed list of cash accounts, securities, real property legal descriptions, insurance policies, and any other assets being transferred to the Trust. Attach separate assignments or deeds as necessary.]

[// GUIDANCE FOR COUNSEL:
1. Review Hawai‘i Uniform Probate and Trust Code provisions for any updates prior to execution.
2. Confirm titling of all assets in trustee capacity; prepare “pour-over” Will to capture subsequently acquired property.
3. Consider adding a “trust protector” article if additional oversight is desired.
4. For married Grantors, determine whether to structure as joint or individual trusts to optimize estate tax and creditor protection objectives.]