HRS §557A-410
How to split money from assets that run out
This section defines a "liquidating asset" as something that loses value or ends because it only produces money for a limited time, like a lease or patent. When a trustee gets money from such an asset, they must put 10% into income and the rest into the main fund.
trustees
The statute, as written — Liquidating asset
(a) As used in this section, "liquidating asset" means an asset whose value will diminish or terminate because the asset is expected to produce receipts for a period of limited duration. The term includes leaseholds, patents, trademarks, copyrights, royalty rights, and rights to receive payments during a period of more than one year under an arrangement that does not provide for the payment of interest on the unpaid balance. The term does not include deferred compensation that is subject to section 557A-409, natural resources that are subject to section 557A-411, timber that is subject to section 557A-412, an activity that is subject to section 557A-414, an asset subject to section 557A-415, or any asset for which the trustee establishes a reserve for depreciation under section 557A-503. (b) A trustee shall allocate to income ten per cent of the receipts from a liquidating asset and the balance to principal.
Sections this one refers to
§557A-409 How trust payments are split between income and principal
§557A-411 How trusts divide money from natural resources
§557A-412 How trustees handle money from selling timber
§557A-414 Derivatives and options
§557A-415 How trusts handle payments from asset-backed securities
LawTrove is not legal advice. The summary above is a computer-generated restatement — the authoritative text is the official version linked above.