§554B-2  Custodial trust; general.  (a) 
A person may create a custodial trust of property by transfer evidenced by
registration or other written instrument of transfer to another in any manner
consistent with law, naming an individual, who may be the transferor or
another, as beneficiary, in which the transferee is designated, in substance,
as custodial trustee under the Hawaii Uniform Custodial Trust Act.



(b)  A person may create a custodial trust of
property by declaration evidenced by registration or other written instrument
of declaration in any manner consistent with law, naming an individual other
than the declarant as beneficiary, in which the declarant as titleholder is
designated, in substance, as custodial trustee under the Hawaii Uniform Custodial
Trust Act.  A trust registration or other declaration for the sole benefit of
the declarant is not a custodial trust under this chapter.



(c)  Title to custodial trust property is in
the custodial trustee, and the beneficial interest in custodial trust property
is in the beneficiary, subject to the provisions of this chapter.



(d)  Except as provided in subsection (e), a
custodial trust may not be terminated by the transferor.



(e)  A custodial trust may be terminated by the
beneficiary if not incapacitated, or by the conservator of an incapacitated
beneficiary, upon delivering to the custodial trustee a writing signed by the
beneficiary or conservator declaring the termination.  The exercise of a
durable power of attorney for an incapacitated beneficiary is not effective to
terminate or direct the distribution or management of the trust.  If not
previously terminated, the custodial trust terminates on the death of the
beneficiary, and the custodial trust property must be distributed as provided
in section 554B-17.



(f)  Additional property may be placed in an
existing custodial trust pursuant to this chapter.



(g)  A successor custodial trustee may be
designated, or the designation authorized, by the custodial trust instrument.



(h)  This chapter does not restrict other means
of creating trusts.  A trust whose terms do not conform to this chapter may be
valid and enforceable according to its terms under other law. [L 1989, c 76, pt
of §1; am L 2004, c 161, §36]