§554-4 Annual account; trustees to file. Every trustee acting under appointment of any court or under any appointment requiring the approval of any court, shall, except in cases where the prior trustee, if any, was not required by statute or the instrument creating the trust or appointing the trustee to file such an account, file annually with the court having jurisdiction thereof an account showing in detail all receipts and disbursements, together with a full and detailed inventory of all property in the trustee's possession or under the trustee's control; provided that the court in cases in which it deems it advisable in the interests of the beneficiaries may permit the accounts to be filed biennially or triennially instead of annually or, if they are filed annually, may permit them to accumulate to be passed upon biennially or triennially; and provided further that the court on its own examination or that of its clerk, shall, without reference to a master, pass upon the accounts in cases in which the annual income does not exceed $1,000, except in the case of a final account when the court may refer the same to a master, irrespective of the amount of the annual income, if for any reason it is deemed proper or necessary. If any such trustee fails to file an account as herein required, the clerk of the court in which the trustee is required to file the account, shall notify the trustee promptly of such failure, and, if the trustee fails to file the account within thirty days after such notification, the trustee shall be cited to appear before the court and be required to show cause why the trustee should not be punished for contempt of court as provided by section 710-1077 and the trustee shall be subject to all of the penalties in such section provided. The court may also, in its discretion, remove any such trustee.

Unless otherwise required by the instrument creating the trust, nothing in this section shall be construed to require the filing of an annual account by a trustee or trustees appointed by the court as additional trustee or trustees to serve with or in the place and stead of a trustee or trustees appointed in the instrument creating a trust, nor by a trustee whose appointment is made in accordance with or pursuant to the instrument creating the trust where such appointment has been confirmed by any court in proceedings brought to secure the confirmation or approval thereof. This provision applies to trusts existing on May 13, 1935, and appointments made thereunder as well as to future trusts. [L 1915, c 101, §1; RL 1925, §2475; am L 1929, c 169, §1; am L Sp 1933, c 38, §1; RL 1935, §4713; am L 1935, c 154, §1 and pt of §2; RL 1945, §12574; am L 1945, c 186, §1; RL 1955, §340-4; HRS §554-4; am L 1976, c 200, pt of §1; am L 1984, c 95, §11]

Cross References

Commissions and further allowances of trustees, see §607-18.

Rules of Court

Accountings, see Hawaii Probate Rules, part A(VII); HPR rules 83, 84.

Ex parte proceedings regarding accounts, applicability of Hawaii Rules of Civil Procedure, see HRCP rule 81(a).

Case Notes

Duty to render accurate accounts. 30 H. 359, 391 (1928).

Trustee may not make profits for itself. 30 H. 359, 386 (1928); 47 H. 629, 394 P.2d 432 (1964).

Right to interest on advance made by trustee to pay interest. 31 H. 958 (1931).

Ex parte approval of accounts not binding. 34 H. 263 (1937); 35 H. 501, 537 (1940); 35 H. 689, 707 (1940); 46 H. 475, 559, 382 P.2d 920 (1963).

What bookkeeping system required of trustee. 34 H. 417 (1937).

Whether accounts should be settled before termination of trust, duty of master to advise court. 46 H. 475, 561, 382 P.2d 920 (1963).

An appellate court in reviewing trustee's accounting has duty to question any receipt or expenditure which is improper without regard to whether the issues were argued and briefed on appeal. 53 H. 604, 499 P.2d 670 (1972).

Trial court's award of master's fee will be reversed only on showing of abuse of discretion. 53 H. 604, 499 P.2d 670 (1972).

Cited: 36 H. 403, 452 (1943); 37 H. 111, 122, 146 (1945).