Authorizes trustees to split a trust into separate trusts.
Reroutes unclaimed assets to the State rather than to the
guardian.  Apportions the expenses of the fiduciary with the tax
among the persons interested in the estate.  Raises threshold for
classification as a small estate from $60,000 to $100,000.

HOUSE OF REPRESENTATIVES                H.B. NO.           
TWENTIETH LEGISLATURE, 2000                                
STATE OF HAWAII                                            

                   A  BILL  FOR  AN  ACT



 1      SECTION 1.  Section 554A-3, Hawaii Revised Statutes, is
 2 amended by amending subsection (c) to read as follows:
 3      "(c)  A trustee has the power, subject to subsections (a)
 4 and (b):
 5      (1)  To collect, hold, and retain trust assets received from
 6           a trustor until, in the judgment of the trustee,
 7           disposition of the assets should be made;
 8      (2)  To receive additions to the assets of the trust;
 9      (3)  To continue or participate in the operation of any
10           business or other enterprise, and to effect
11           incorporation, dissolution, or other change in the form
12           of the organization of the business or enterprise;
13      (4)  To invest and reinvest trust assets in accordance with
14           the provisions of the trust or as provided by law;
15      (5)  To deposit trust funds in a bank;
16      (6)  To acquire or dispose of an asset, for cash or on
17           credit, at public or private sale; and to manage,
18           develop, improve, exchange, partition, change the
19           character of, or abandon a trust asset or any interest

Page 2                                                     2646
                                     H.B. NO.           

 1           therein; and to encumber, mortgage, or pledge a trust
 2           asset for a term within or extending beyond the term of
 3           the trust, in connection with the exercise of any power
 4           vested in the trustee;
 5      (7)  To make ordinary or extraordinary repairs or
 6           alterations in buildings or other structures, to
 7           demolish any improvements, to raze existing or erect
 8           new party walls or buildings;
 9      (8)  To subdivide, develop, or dedicate land to public use;
10           or to make or obtain the vacation of plats and adjust
11           boundaries; or to adjust differences in valuation on
12           exchange or partition by giving or receiving
13           consideration; or to dedicate easements to public use
14           without consideration;
15      (9)  To enter for any purpose into a lease as lessor or
16           lessee with or without option to purchase or renew for
17           a term within or extending beyond the term of the
18           trust;
19     (10)  To enter into a lease or arrangement for exploration
20           and removal of minerals or other natural resources or
21           enter into a pooling or unitization agreement;
22     (11)  To grant an option involving disposition of a trust
23           asset, or to take an option for the acquisition of any

Page 3                                                     2646
                                     H.B. NO.           

 1           asset;
 2     (12)  To vote a security, in person or by general or limited
 3           proxy;
 4     (13)  To pay calls, assessments, and any other sums
 5           chargeable or accruing against or on account of
 6           securities;
 7     (14)  To sell or exercise stock subscription or conversion
 8           rights; to consent, directly or through a committee or
 9           other agent, to the reorganization, consolidation,
10           merger, dissolution, or liquidation of a corporation or
11           other business enterprise;
12     (15)  To hold a security in the name of a nominee or in other
13           form without disclosure of the trust, so that title to
14           the security may pass by delivery, but the trustee is
15           liable for any act of the nominee in connection with
16           the stock so held;
17     (16)  To insure the assets of the trust against damage or
18           loss, and the trustee against liability with respect to
19           third persons;
20     (17)  To borrow money to be repaid from trust assets or
21           otherwise; to advance money for the protection of the
22           trust, and for all expenses, losses, and liabilities
23           sustained in the administration of the trust or because

Page 4                                                     2646
                                     H.B. NO.           

 1           of the holding or ownership of any trust assets, for
 2           which advances with any interest the trustee has a lien
 3           on the trust assets as against the beneficiary;
 4     (18)  To pay or contest any claim; to settle a claim by or
 5           against the trust by compromise, arbitration, or
 6           otherwise; and to release, in whole or in part, any
 7           claim belonging to the trust to the extent that the
 8           claim is uncollectible;
 9     (19)  To pay taxes, assessments, compensation of the trustee,
10           and other expenses incurred in the collection, care,
11           administration, and protection of the trust;
12     (20)  To allocate items of income or expense to either trust
13           income or principal, as provided by chapter 557, the
14           Revised Uniform Principal and Income Act, including
15           creation of reserves out of income for depreciation,
16           obsolescence, or amortization, or for depletion in
17           mineral or timber properties;
18     (21)  To pay any sum distributable to a beneficiary under
19           legal disability, without liability to the trustee, by
20           paying the sum to the beneficiary or by paying the sum
21           for the use of the beneficiary either to a legal
22           representative appointed by the court, or if none, to a
23           relative;

Page 5                                                     2646
                                     H.B. NO.           

 1     (22)  To effect distribution of money and property (that may
 2           be made in kind on a pro rata or non-pro rata basis),
 3           in divided or undivided interests, and to adjust
 4           resulting differences in valuation;
 5     (23)  To employ persons, including attorneys, auditors,
 6           investment advisors, or agents, even if they are
 7           associated with the trustee, to advise or assist the
 8           trustee in performance of the trustee's administrative
 9           duties; to act without independent investigation upon
10           their recommendations; and instead of acting
11           personally, to employ one or more agents to perform any
12           act of administration, whether or not discretionary;
13     (24)  To prosecute or defend actions, claims, or proceedings
14           for the protection of trust assets and of the trustee
15           in the performance of trustee duties; [and]
16     (25)  To execute and deliver all instruments which will
17           accomplish or facilitate the exercise of the powers
18           vested in the trustee[.]; and
19     (26)  To divide, sever, or separate a single trust into two
20           or more separate trusts for administration or tax
21           purposes, including the allocation of the generation-
22           skipping transfer exemption; provided the terms of the
23           new trust provide, in the aggregate, for the same

Page 6                                                     2646
                                     H.B. NO.           

 1           succession of interests and beneficiaries as are
 2           provided in the original trust."
 3      SECTION 2.  Section 560:2-707, Hawaii Revised Statutes, is
 4 amended to read as follows:
 5      "560:2-707  Survivorship with respect to future interests
 6 under terms of trust; substitute takers.(a)  Definitions.  In
 7 this section:
 8      "Alternative future interest" means an expressly created
 9 future interest that can take effect in possession or enjoyment
10 instead of another future interest on the happening of one or
11 more events, including survival of an event or failure to survive
12 an event, whether an event is expressed in condition-precedent,
13 condition-subsequent, or any other form.  A residuary clause in a
14 will does not create an alternative future interest with respect
15 to a future interest created in a nonresiduary devise in the
16 will, whether or not the will specifically provides that lapsed
17 or failed devises are to pass under the residuary clause.
18      "Beneficiary" means the beneficiary of a future interest and
19 includes a class member if the future interest is in the form of
20 a class gift.
21      "Class member" includes an individual who fails to survive
22 the distribution date but who would have taken under a future
23 interest in the form of a class gift had the individual survived

Page 7                                                     2646
                                     H.B. NO.           

 1 the distribution date.
 2      "Distribution date", with respect to a future interest,
 3 means the time when the future interest is to take effect in
 4 possession or enjoyment.  The distribution date need not occur at
 5 the beginning or end of a calendar day, but can occur at a time
 6 during the course of a day.
 7      "Future interest" includes an alternative future interest
 8 and a future interest in the form of a class gift.
 9      "Future interest under the terms of a trust" means a future
10 interest that was created by a transfer creating a trust or to an
11 existing trust or by an exercise of a power of appointment to an
12 existing trust, directing the continuance of an existing trust,
13 designating a beneficiary of an existing trust, or creating a
14 trust.
15      "Surviving beneficiary" or "surviving descendant" means a
16 beneficiary or a descendant who neither predeceased the
17 distribution date nor is deemed to have predeceased the
18 distribution date under section 560:2-702.
19      (b)  Survivorship required; substitute gift.  A future
20 interest under the terms of a trust executed after January 1,
21 1997 is contingent on the beneficiary's surviving the
22 distribution date.  If a beneficiary of a future interest under
23 the terms of a trust fails to survive the distribution date, the

Page 8                                                     2646
                                     H.B. NO.           

 1 following apply:
 2      (1)  Except as provided in paragraph (4), if the future
 3           interest is not in the form of a class gift and the
 4           deceased beneficiary leaves surviving descendants, a
 5           substitute gift is created in the beneficiary's
 6           surviving descendants.  They take by representation the
 7           property to which the beneficiary would have been
 8           entitled had the beneficiary survived the distribution
 9           date;
10      (2)  Except as provided in paragraph (4), if the future
11           interest is in the form of a class gift, other than a
12           future interest to "issue", "descendants", "heirs of
13           the body", "heirs", "next of kin", "relatives", or
14           "family", or a class described by language of similar
15           import, a substitute gift is created in the surviving
16           descendants of any deceased beneficiary.  The property
17           to which the beneficiaries would have been entitled had
18           all of them survived the distribution date passes to
19           the surviving beneficiaries and the surviving
20           descendants of the deceased beneficiaries.  Each
21           surviving beneficiary takes the share to which the
22           surviving beneficiary would have been entitled had the
23           deceased beneficiaries survived the distribution date.

Page 9                                                     2646
                                     H.B. NO.           

 1           Each deceased beneficiary's surviving descendants who
 2           are substituted for the deceased beneficiary take by
 3           representation the share to which the deceased
 4           beneficiary would have been entitled had the deceased
 5           beneficiary survived the distribution date.  For the
 6           purposes of this paragraph, "deceased beneficiary"
 7           means a class member who failed to survive the
 8           distribution date and left one or more surviving
 9           descendants;
10      (3)  For the purposes of section 560:2-701, words of
11           survivorship attached to a future interest are not, in
12           the absence of additional evidence, a sufficient
13           indication of an intent contrary to the application of
14           this section.  Words of survivorship include words of
15           survivorship that relate to the distribution date or to
16           an earlier or an unspecified time, whether those words
17           of survivorship are expressed in condition-precedent,
18           condition-subsequent, or any other form;
19      (4)  If a governing instrument creates an alternative future
20           interest with respect to a future interest for which a
21           substitute gift is created by paragraph (1) or (2), the
22           substitute gift is superseded by the alternative future
23           interest only if an expressly designated beneficiary of

Page 10                                                    2646
                                     H.B. NO.           

 1           the alternative future interest is entitled to take in
 2           possession or enjoyment.
 3      (c)  More than one substitute gift; which one takes.  If,
 4 under subsection (b), substitute gifts are created and not
 5 superseded with respect to more than one future interest and the
 6 future interests are alternative future interests, one to the
 7 other, the determination of which of the substitute gifts takes
 8 effect is resolved as follows:
 9      (1)  Except as provided in paragraph (2), the property
10           passes under the primary substitute gift;
11      (2)  If there is a younger-generation future interest, the
12           property passes under the younger-generation substitute
13           gift and not under the primary substitute gift;
14      (3)  In this subsection:
15                "Primary future interest" means the future
16           interest that would have taken effect had all the
17           deceased beneficiaries of the alternative future
18           interests who left surviving descendants survived the
19           distribution date.
20                "Primary substitute gift" means the substitute
21           gift created with respect to the primary future
22           interest.
23                "Younger-generation future interest" means a

Page 11                                                    2646
                                     H.B. NO.           

 1           future interest that:
 2                (A)  Is to a descendant of a beneficiary of the
 3                     primary future interest;
 4                (B)  Is an alternative future interest with
 5                     respect to the primary future interest;
 6                (C)  Is a future interest for which a substitute
 7                     gift is created; and
 8                (D)  Would have taken effect had all the deceased
 9                     beneficiaries who left surviving descendants
10                     survived the distribution date except the
11                     deceased beneficiary or beneficiaries of the
12                     primary future interest.
13                "Younger-generation substitute gift" means the
14           substitute gift created with respect to the younger-
15           generation future interest.
16      (d)  If no other takers, property passes under residuary
17 clause or to transferor's heirs.  Except as provided in
18 subsection (e), if, after the application of subsections (b) and
19 (c), there is no surviving taker, the property passes in the
20 following order:
21      (1)  If the trust was created in a nonresiduary devise in
22           the transferor's will or in a codicil to the
23           transferor's will, the property passes under the

Page 12                                                    2646
                                     H.B. NO.           

 1           residuary clause in the transferor's will; for purposes
 2           of this section, the residuary clause is treated as
 3           creating a future interest under the terms of a trust;
 4      (2)  If no taker is produced by the application of paragraph
 5           (1), the property passes to the transferor's heirs
 6           under section 560:2-711.
 7      (e)  If no other takers and if future interest created by
 8 exercise of power of appointment.  If, after the application of
 9 subsections (b) and (c), there is no surviving taker and if the
10 future interest was created by the exercise of a power of
11 appointment:
12      (1)  The property passes under the donor's gift-in-default
13           clause, if any, which clause is treated as creating a
14           future interest under the terms of a trust; and
15      (2)  If no taker is produced by the application of paragraph
16           (1), the property passes as provided in subsection (d).
17           For purposes of subsection (d), "transferor" means the
18           donor if the power was a nongeneral power and means the
19           donee if the power was a general power. 
20      (f)  Notwithstanding the foregoing, if a revocable inter
21 vivos trust terminates on the death of the settlor of the trust
22 and all the assets are to be distributed outright, sections
23 560:2-603 and 560:2-604 shall determine whether a gift has lapsed

Page 13                                                    2646
                                     H.B. NO.           

 1 and who shall receive the property."
 2      SECTION 3.  Section 560:3-905, Hawaii Revised Statutes, is
 3 amended to read as follows:
 4      "560:3-905  Penalty clause for contest.  A provision in a
 5 will or trust purporting to penalize any interested person for
 6 contesting the will or trust or instituting other proceedings
 7 relating to the probate or trust estate is unenforceable if
 8 probable cause exists for instituting proceedings." 
 9      SECTION 4.  Section 560:3-914, Hawaii Revised Statutes, is
10 amended to read as follows:
11      "560:3-914  Disposition of unclaimed assets.  [If an heir,
12 devisee, or claimant cannot be found, the personal representative
13 shall distribute the share of the missing person, whether realty
14 or personalty, to that person's guardian of the property, if any,
15 otherwise to the State to become a part of the treasury of the
16 State under chapters 523A and 665, as appropriate.] When any real
17 or personal property remains in the hands of the personal
18 representative or trustee, after payment in the order specified
19 in section 560:3-805, and no heirs, devisees, or claimants of the
20 decedent, or beneficiaries of a trust, entitled to the property,
21 can be located after reasonable search and inquiry, the personal
22 representative or trustee, at the filing of the petition for
23 final accounts, or termination of the trust, shall report the

Page 14                                                    2646
                                     H.B. NO.           

 1 fact to the court, which shall forthwith enter an order
 2 authorizing the transfer of the property to the state director of
 3 finance, and the personal representative or trustee shall
 4 immediately transfer the property to the director of finance for
 5 disposition as provided in chapters 523A and 665, whichever is
 6 appropriate.  The state director of finance, at any time, may
 7 authorize the payment out of the general funds of any amount so
 8 forwarded to any person who establishes to the satisfaction of
 9 the director of finance that the person is legally entitled as an
10 heir, devisee, or claimant of the decedent, or a beneficiary of a
11 trust, and the person shall be entitled to receive the amount out
12 of any moneys in the general revenues of the State not otherwise
13 appropriated, upon warrant drawn by the state comptroller."
14      SECTION 5.  Section 560:3-916, Hawaii Revised Statutes, is
15 amended to read as follows:
16      560:3-916  Apportionment of estate taxes.(a)  For
17 purposes of this section:
18      "Estate" means the gross estate of a decedent as determined
19 for the purpose of federal estate tax and the estate tax payable
20 to this State.
21      "Fiduciary" means personal representative or trustee.
22      "Person" means any individual, partnership, association,
23 joint stock company, corporation, government, political

Page 15                                                    2646
                                     H.B. NO.           

 1 subdivision, governmental agency, or local governmental agency.
 2      "Person interested in the estate" means any person entitled
 3 to receive, or who has received, from a decedent or by reason of
 4 the death of a decedent any property or interest therein included
 5 in the decedent's estate.  It includes a personal representative,
 6 conservator, and trustee.
 7      "State" means any state, territory, or possession of the
 8 United States, the District of Columbia, and the Commonwealth of
 9 Puerto Rico.
10      "Tax" means the federal estate tax and the additional
11 inheritance tax imposed by Hawaii and interest and penalties
12 imposed in addition to the tax.
13      (b)  Except as provided in subsection [(i)] (j) and, unless
14 the will otherwise provides, the tax shall be apportioned among
15 all persons interested in the estate.  The apportionment is to be
16 made in the proportion that the value of the interest of each
17 person interested in the estate bears to the total value of the
18 interests of all persons interested in the estate.  The values
19 used in determining the tax are to be used for that purpose.  If
20 the decedent's will directs a method of apportionment of tax
21 different from the method described in this chapter, the method
22 described in the will controls.
23      (c)  The expenses reasonably incurred by any fiduciary and

Page 16                                                    2646
                                     H.B. NO.           

 1 by other persons interested in the estate in connection with the
 2 determination of the amount and apportionment of the tax shall be
 3 apportioned as provided in subsection (b) and charged and
 4 collected as a part of the tax apportioned.  If the court finds
 5 it is inequitable to apportion the expenses as provided in
 6 subsection (b), it may direct apportionment equitably.
 7     [(c)] (d) (1)  The court in which venue lies for the
 8           administration of the estate of a decedent, on petition
 9           for the purpose may determine the apportionment of the
10           tax;
11      (2)  If the court finds that it is inequitable to apportion
12           interest and penalties in the manner provided in
13           subsection (b), because of special circumstances, it
14           may direct apportionment thereof in the manner it finds
15           equitable;
16      (3)  If the court finds that the assessment of penalties and
17           interest assessed in relation to the tax is due to
18           delay caused by the negligence of the fiduciary, the
19           court may charge the fiduciary with the amount of the
20           assessed penalties and interest;
21      (4)  In any action to recover from any person interested in
22           the estate the amount of the tax apportioned to the
23           person in accordance with this chapter the

Page 17                                                    2646
                                     H.B. NO.           

 1           determination of the court in respect thereto shall be
 2           prima facie correct.
 3     [(d)] (e) (1)  The personal representative or other person in
 4           possession of the property of the decedent required to
 5           pay the tax may withhold from any property
 6           distributable to any person interested in the estate,
 7           upon its distribution to that person, the amount of tax
 8           attributable to that person's interest.  If the
 9           property in possession of the personal representative
10           or other person required to pay the tax and
11           distributable to any person interested in the estate is
12           insufficient to satisfy the proportionate amount of the
13           tax determined to be due from the person, the personal
14           representative or other person required to pay the tax
15           may recover the deficiency from the person interested
16           in the estate.  If the property is not in the
17           possession of the personal representative or the other
18           person required to pay the tax, the personal
19           representative or the other person required to pay the
20           tax may recover from any person interested in the
21           estate the amount of the tax apportioned to the person
22           in accordance with this chapter;
23      (2)  If property held by the personal representative is

Page 18                                                    2646
                                     H.B. NO.           

 1           distributed prior to final apportionment of the tax,
 2           the distributee shall provide a bond or other security
 3           for the apportionment liability in the form and amount
 4           prescribed by the personal representative.
 5     [(e)] (f) (1)  In making an apportionment, allowances shall
 6           be made for any exemptions granted, any classification
 7           made of persons interested in the estate and for any
 8           deductions and credits allowed by the law imposing the
 9           tax;
10      (2)  Any exemption or deduction allowed by reason of the
11           relationship of any person to the decedent or by reason
12           of the purposes of the gift inures to the benefit of
13           the person bearing such relationship or receiving the
14           gift; but if an interest is subject to a prior present
15           interest which is not allowable as a deduction, the tax
16           apportionable against the present interest shall be
17           paid from principal;
18      (3)  Any deduction for property previously taxed and any
19           credit for gift taxes or death taxes of a foreign
20           country paid by the decedent or the decedent's estate
21           inures to the proportionate benefit of all persons
22           liable to apportionment;
23      (4)  Any credit for inheritance, succession or estate taxes

Page 19                                                    2646
                                     H.B. NO.           

 1           or taxes in the nature thereof applicable to property
 2           or interests includable in the estate, inures to the
 3           benefit of the persons or interests chargeable with the
 4           payment thereof to the extent proportionately that the
 5           credit reduces the tax;
 6      (5)  To the extent that property passing to or in trust for
 7           a surviving spouse or reciprocal beneficiary or any
 8           charitable, public or similar purpose is not an
 9           allowable deduction for purposes of the tax solely by
10           reason of an inheritance tax or other death tax imposed
11           upon and deductible from the property, the property is
12           not included in the computation provided for in
13           subsection (b) [hereof], and to that extent no
14           apportionment is made against the property.  The
15           sentence immediately preceding does not apply to any
16           case if the result would be to deprive the estate of a
17           deduction otherwise allowable under section 2053(d) of
18           the Internal Revenue Code of 1986, as amended, of the
19           United States, relating to deduction for state death
20           taxes on transfers for public, charitable, or religious
21           uses.
22      [(f)] (g)  No interest in income and no estate for years or
23 for life or other temporary interest in any property or fund is

Page 20                                                    2646
                                     H.B. NO.           

 1 subject to apportionment as between the temporary interest and
 2 the remainder.  The tax on the temporary interest and the tax, if
 3 any, on the remainder is chargeable against the corpus of the
 4 property or funds subject to the temporary interest and
 5 remainder.
 6      [(g)] (h)  Neither the personal representative nor other
 7 person required to pay the tax is under any duty to institute any
 8 action to recover from any person interested in the estate the
 9 amount of the tax apportioned to the person until the expiration
10 of the three months next following final determination of the
11 tax.  A personal representative or other person required to pay
12 the tax who institutes the action within a reasonable time after
13 the three-month period is not subject to any liability or
14 surcharge because any portion of the tax apportioned to any
15 person interested in the estate was collectible at a time
16 following the death of the decedent but thereafter became
17 uncollectible.  If the personal representative or other person
18 required to pay the tax cannot collect from any person interested
19 in the estate the amount of the tax apportioned to the person,
20 the amount not recoverable shall be equitably apportioned among
21 the other persons interested in the estate who are subject to
22 apportionment.
23      [(h)] (i)  A personal representative acting in another state

Page 21                                                    2646
                                     H.B. NO.           

 1 or a person required to pay the tax domiciled in another state
 2 may institute an action in the courts of this State and may
 3 recover a proportionate amount of the federal estate tax, of an
 4 estate tax payable to another state or of a death duty due by a
 5 decedent's estate to another state, from a person interested in
 6 the estate who is either domiciled in this State or who owns
 7 property in this State subject to attachment or execution.  For
 8 the purposes of the action the determination of apportionment by
 9 the court having jurisdiction of the administration of the
10 decedent's estate in the other state is prima facie correct.
11      [(i)] (j)  If the liabilities of persons interested in the
12 estate as prescribed by this chapter differ from those which
13 result under the federal estate tax law, the liabilities imposed
14 by the federal law will control and the balance of this section
15 shall apply as if the resulting liabilities had been prescribed
16 herein."
17      SECTION 6.  Section 560:3-1201, Hawaii Revised Statutes, is
18 amended by amending subsection (a) to read as follows:
19      "(a)  Any person indebted to the decedent or having
20 possession of tangible personal property or an instrument
21 evidencing a debt, obligation, stock, chose in action, or other
22 intangible personal property belonging to the decedent shall make
23 payment of the indebtedness or deliver the tangible personal

Page 22                                                    2646
                                     H.B. NO.           

 1 property or an instrument evidencing the debt, obligation, stock,
 2 chose in action, or other intangible personal property to a
 3 person or persons claimed to be the successor or successors of
 4 the decedent or to the department of human services where the
 5 department has paid for the decedent's burial pursuant to section
 6 346-15, upon being presented a death certificate for the decedent
 7 and an affidavit made by or on behalf of the claimed successor or
 8 successors or the department of human services stating that:
 9      (1)  The gross value of the decedent's estate in this State
10           does not exceed [$60,000;] $100,000; except that any
11           motor vehicles registered in the decedent's name may be
12           transferred regardless of value pursuant to this
13           section;
14      (2)  No application or petition for the appointment of a
15           personal representative is pending or has been granted
16           in this State; and
17      (3)  (A)  The claimed successor or successors are entitled
18                to the property and explaining the relationship of
19                the claimed successor or successors to the
20                decedent; or
21           (B)  The department of human services has paid for the
22                decedent's burial.
23 The affidavit of the department of human services shall have

Page 23                                                    2646
                                     H.B. NO.           

 1 priority over any other claim presented pursuant to this
 2 section." 
 3      SECTION 7.  Section 560:3-1205, Hawaii Revised Statutes, is
 4 amended to read as follows:
 5      "560:3-1205  Estates of [$60,000] $100,000 or less; clerk
 6 of court to administer.  If a person dies leaving property in
 7 this State of a total value not exceeding [$60,000,] $100,000 and
 8 a personal representative of the estate has not been appointed in
 9 the State, the clerk of the court of the judicial circuit in
10 which the decedent was residing or domiciled at the time of the
11 decedent's death or left property may, upon the verified petition
12 of the clerk or of any interested person, obtain an order
13 authorizing the clerk to administer the estate, and, as the
14 personal representative, the clerk shall collect and receive the
15 property and administer the same.  The order may be made without
16 notice or hearing, at the discretion of the court.  Except as
17 otherwise specifically required or authorized by law or where the
18 clerk may be interested as an heir, or devisee, no clerk of any
19 court shall act as personal representative of any estate where
20 the value of the same is in excess of [$60,000.] $100,000.  No
21 fees shall be allowed the clerk, except as set forth in section
22 560:3-1211."
23      SECTION 8.  Section 560:3-1211, Hawaii Revised Statutes, is

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                                     H.B. NO.           

 1 amended to read as follows:
 2      "560:3-1211  Exemption from costs.  All proceedings under
 3 this part shall be free from all costs of court, except that the
 4 clerk may charge the actual expenses for advertising the notice
 5 specified in section 560:3-1206, the advertising, posting, or
 6 service fees required in carrying out any order of the court,
 7 including orders relating to the sale of real or personal
 8 property, and any expenses reasonably necessary for the
 9 preservation, disposal, distribution, and administration of the
10 estate, together with a fee of three per cent of the market value
11 of the first [$60,000] $100,000 in the gross estate, the fee to
12 be paid into the treasury of the State as a government
13 realization from any available assets of the estate; provided
14 that if the administration is completed by another personal
15 representative on account of the size of the estate or for any
16 other reason, no fee shall be charged by the clerk."
17      SECTION 9.  This Act does not affect rights and duties that
18 matured, penalties that were incurred, and proceedings that were
19 begun, before its effective date.
20      SECTION 10.  Statutory material to be repealed is bracketed.
21 New statutory material is underscored.

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                                     H.B. NO.           

 1      SECTION 11.  This Act shall take effect on July 1, 2000.
 3                       INTRODUCED BY:  ___________________________