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HRS §554D-506

When creditors can reach overdue trust payments

If a trustee is required to pay a beneficiary but delays too long, the beneficiary's creditor can go after that unpaid amount. This only applies to required payments, not ones the trustee has discretion over.

beneficiariescreditorstrustees

The statute, as written — Overdue distribution

(a) Regardless of whether a trust contains a spendthrift provision, a creditor or assignee of a beneficiary may reach a mandatory distribution of income or principal, including a distribution upon termination of the trust, if the trustee has not made the distribution to the beneficiary within a reasonable time after the designated distribution date. (b) As used in this section, "mandatory distribution" means a distribution of income or principal that the trustee is required to make to a beneficiary under the terms of the trust, including a distribution upon termination of the trust. "Mandatory distribution" does not include a distribution subject to the exercise of the trustee's discretion even if: (1) The discretion is expressed in the form of a standard of distribution; or (2) The terms of the trust authorizing a distribution couple language of discretion with language of direction.
Read the official text at capitol.hawaii.gov ↗as published Jan 6, 2026our copy taken Aug 20, 2026

LawTrove is not legal advice. The summary above is a computer-generated restatement — the authoritative text is the official version linked above.