IRREVOCABLE TRUST AGREEMENT

(State of Hawaiʻi)

[// GUIDANCE: This template is drafted for use under Hawaiʻi law and the Hawaiʻi Uniform Trust Code. Customize all bracketed fields before execution. Remove all guidance comments prior to signing.]

TABLE OF CONTENTS

1. Article I – Declaration & Establishment
2. Article II – Definitions
3. Article III – Trust Administration
4. Article IV – Representations & Warranties
5. Article V – Covenants & Restrictions
6. Article VI – Default; Removal & Succession
7. Article VII – Risk Allocation
8. Article VIII – Dispute Resolution
9. Article IX – General Provisions
10. Article X – Execution & Acknowledgment

ARTICLE I

DECLARATION & ESTABLISHMENT

1.1 Parties.
(a) Grantor: [GRANTOR LEGAL NAME], a [STATE] resident, SSN -__-____.
(b) *Initial Trustee: [TRUSTEE LEGAL NAME], a [STATE] resident/ entity, TIN [__].

1.2 Effective Date. This Irrevocable Trust Agreement (“Agreement”) is made effective as of [MONTH DAY, YEAR] (the “Effective Date”).

1.3 Name of Trust. The trust created herein shall be known as the [NAME OF TRUST] (the “Trust”).

1.4 Governing Law. This Agreement and all rights and obligations hereunder shall be governed by and construed in accordance with the laws of the State of Hawaiʻi, without regard to conflicts-of-law principles.

1.5 Intent & Irrevocability.
(a) The Grantor irrevocably assigns, transfers, and delivers to the Trustee the property described in Schedule A (the “Trust Estate”) to hold in trust, IN TRUST NEVERTHELESS, for the uses and purposes and upon the terms set forth herein.
(b) Except as expressly permitted in §3.6(b) (Trustee-Initiated Reformation), this Trust is irrevocable and may not be amended, revoked, or terminated by the Grantor, any Beneficiary, or any court absent statutory authority.

ARTICLE II

DEFINITIONS

The following terms (alphabetically listed) shall have the meanings set forth below and apply throughout this Agreement:

“Accounting” means a written report of Trust receipts, disbursements, principal and income balances prepared in conformity with Hawaiʻi law.

“Applicable Law” means the Hawaiʻi Uniform Trust Code, the Internal Revenue Code, regulations, and any successor or comparable statutes.

“Beneficiary” means each person or entity identified in Schedule B, together with any successor, substitute, or after-born Beneficiary as provided herein.

“Dispositive Provisions” has the meaning assigned in §3.4.

“Grantor” has the meaning set forth in §1.1(a).

“Qualified Trustee” means an individual who is not a “related or subordinate party” within the meaning of I.R.C. §672(c) or a corporate fiduciary authorized to act in Hawaiʻi.

“Trust” has the meaning set forth in §1.3.

“Trust Estate” has the meaning set forth in §1.5(a).

“Trustee” means the person or entity serving from time to time as trustee under this Agreement, including any successor trustee.

[// GUIDANCE: Add additional defined terms (e.g., “Independent Trustee,” “Distribution Committee”) as required by the specific structure.]

ARTICLE III

TRUST ADMINISTRATION

3.1 Purpose. The Trust is established to (i) provide long-term financial security for the Beneficiaries, and (ii) effectuate inter-generational wealth transfer consistent with Applicable Law.

3.2 Dispositive Provisions.
(a) Current Beneficiaries: [NAME(S)].
(b) Remainder Beneficiaries: [NAME(S)].
(c) Distribution Standards.
 (i) Mandatory Income – The Trustee shall distribute all net income to the Current Beneficiaries, per stirpes, no less frequently than annually.
 (ii) Discretionary Principal – The Trustee may distribute principal for the health, education, support, or maintenance (“HEMS Standard”) of any Current Beneficiary after considering other available resources.

3.3 Spendthrift & Creditor Protection. All interests of Beneficiaries are subject to a spendthrift restriction. No Beneficiary may voluntarily or involuntarily alienate, anticipate, or encumber any interest prior to actual receipt.

3.4 Trustee Powers. The Trustee shall have all powers granted under Applicable Law, including but not limited to:
(a) Investment authority (prudent investor rule);
(b) Power to retain, sell, exchange, or encumber Trust Estate assets;
(c) Power to allocate receipts and disbursements between income and principal;
(d) Power to create, merge, or divide sub-trusts as tax or regulatory conditions warrant.

3.5 Accountings & Information Rights.
(a) Annual Accounting. The Trustee shall provide an Accounting to each qualified Beneficiary within 60 days after each calendar year-end.
(b) Right to Copy of Trust. Upon written request, any qualified Beneficiary aged 18 or older shall receive a true and complete copy of this Agreement.

3.6 Tax Administration.
(a) Designation. [SELECT ONE: “The Trust is intended to be treated as a grantor trust under Subpart E of Subchapter J” / “The Trust is intended to be a non-grantor trust.”]
(b) Reformation for Tax Efficacy. If unanticipated tax consequences threaten materially to impair the Trust Estate, the Trustee (or an Independent Trustee) may, after notice to all qualified Beneficiaries, petition the Hawaiʻi Probate Court for reformation consistent with the Trust’s primary objectives.

3.7 Trustee Compensation & Expenses. The Trustee is entitled to reasonable compensation and reimbursement of properly incurred expenses, payable from the Trust Estate.

ARTICLE IV

REPRESENTATIONS & WARRANTIES

4.1 Grantor.
(a) Authority. The Grantor has full legal capacity to execute, deliver, and perform under this Agreement.
(b) Title. All property described in Schedule A is owned free of liens other than those disclosed to the Trustee.

4.2 Trustee.
(a) Authority. The Trustee accepts the Trust Estate and the fiduciary obligations imposed herein.
(b) Licensing. If a corporate trustee, it is duly organized and authorized to act as a fiduciary in Hawaiʻi.

4.3 Survival. All representations and warranties herein shall survive execution and continue for the duration of the Trust.

ARTICLE V

COVENANTS & RESTRICTIONS

5.1 Affirmative Covenants of Trustee.
(a) Exercise fiduciary duties with the care an ordinarily prudent person would exercise in similar circumstances.
(b) Maintain separate books and records for the Trust.
(c) File all required federal, state, and local tax returns.

5.2 Negative Covenants. The Trustee shall not:
(a) Engage in self-dealing except as permitted under Applicable Law and with prior written consent of all qualified Beneficiaries or court approval;
(b) Borrow from the Trust Estate except as expressly authorized herein;
(c) Make any distribution that would cause inclusion of Trust assets in the Grantor’s taxable estate unless so intended.

5.3 Notice & Cure. The Trustee shall notify all qualified Beneficiaries in writing of any material breach of fiduciary duty within 30 days after knowledge thereof and afford a 60-day cure period where feasible.

ARTICLE VI

DEFAULT; REMOVAL & SUCCESSION

6.1 Events of Default.
(a) Willful misconduct or gross negligence in administering the Trust.
(b) Persistent failure to render required Accountings.
(c) Insolvency, bankruptcy, or incapacity of the Trustee.

6.2 Remedies.
(a) Immediate suspension of powers upon written notice by a majority of qualified Beneficiaries.
(b) Application to the Hawaiʻi Probate Court for removal, surcharge, or injunctive relief.
(c) Recovery of attorney fees and costs from the Trustee personally (not from Trust assets) in the event of willful misconduct or gross negligence.

6.3 Successor Trustee.
(a) Designation. [NAME OF FIRST SUCCESSOR TRUSTEE] is designated as first Successor Trustee, followed by [NAME OF SECOND SUCCESSOR TRUSTEE].
(b) Acceptance. A Successor Trustee shall assume office by executing a written instrument of acceptance and providing notice to the Beneficiaries.

ARTICLE VII

RISK ALLOCATION

7.1 Trustee Indemnification. The Trustee and its agents shall be indemnified out of the Trust Estate against any liability, cost, or expense reasonably incurred in the administration of the Trust, except for willful misconduct or gross negligence.

7.2 Limitation of Liability. Any claim arising under or relating to this Trust shall be limited to and satisfied solely from the Trust Estate; no personal assets of the Trustee, Grantor, or Beneficiaries shall be liable absent a final judicial finding of willful misconduct or gross negligence.

7.3 Insurance. The Trustee may secure and maintain fiduciary liability insurance with premiums payable from the Trust Estate.

7.4 Force Majeure. The Trustee shall not be liable for failure or delay in performance caused by events beyond its reasonable control, including acts of God, natural disasters, or changes in Applicable Law.

ARTICLE VIII

DISPUTE RESOLUTION

8.1 Governing Law. See §1.4.

8.2 Forum Selection. Exclusive jurisdiction and venue for all proceedings relating to this Trust shall lie in the Circuit Court of the First Circuit, State of Hawaiʻi (Probate Division), or such other Hawaiʻi court exercising appropriate probate jurisdiction.

8.3 Optional Arbitration. [OPTIONAL: Upon unanimous written consent of all qualified Beneficiaries and the Trustee, any dispute may be submitted to binding arbitration administered by a mutually agreed provider in Honolulu, Hawaiʻi. The arbitrator shall have authority to issue injunctive relief consistent with §8.4.]

8.4 Injunctive Relief. Nothing herein shall impair the authority of any court of competent jurisdiction to issue temporary, preliminary, or permanent injunctive relief to enforce the terms of this Trust.

8.5 Jury Waiver. To the extent any matter arising hereunder is tried in a court of law, the parties acknowledge that probate proceedings are traditionally resolved without a jury and hereby waive any right to trial by jury where permitted by Applicable Law.

ARTICLE IX

GENERAL PROVISIONS

9.1 Amendment & Reformation. Except as provided in §§3.6(b) and 9.2, this Trust is irrevocable and may not be amended.

9.2 Judicial Reformation. The Probate Court may modify the Trust to correct scrivener’s errors or achieve the Grantor’s tax objectives, consistent with Hawaiʻi law.

9.3 Assignment. No party may assign rights or delegate duties under this Trust except as expressly permitted herein or by court order.

9.4 Successors & Assigns. This Agreement shall bind and inure to the benefit of the parties hereto and their respective successors and permitted assigns.

9.5 Severability. If any provision of this Agreement is held invalid or unenforceable, the remaining provisions shall remain in full force and effect.

9.6 Entire Agreement. This document, including Schedules A & B, constitutes the entire agreement concerning the Trust and supersedes all prior understandings.

9.7 Counterparts; Electronic Signatures. This Agreement may be executed in multiple counterparts, each of which shall be deemed an original, and by electronic signature with the same force and effect as an ink signature.

ARTICLE X

EXECUTION & ACKNOWLEDGMENT

IN WITNESS WHEREOF, the Grantor and the Trustee have executed this Irrevocable Trust Agreement as of the Effective Date.

[OPTIONAL CORPORATE ACKNOWLEDGMENT BLOCK]

STATE OF HAWAIʻI )
: SS
CITY & COUNTY OF ____ )

On this ___ day of ____, 20__, before me personally appeared [NAME], known to me (or proved on the basis of satisfactory evidence) to be the individual(s) whose name(s) is/are subscribed to this instrument and acknowledged to me that he/she/they executed the same for the purposes therein contained.

Notary Public, State of Hawaiʻi
My commission expires: ____

SCHEDULE A – INITIAL TRUST ESTATE

[Describe in detail each asset being transferred, including cash accounts, securities, real property (with legal descriptions), life insurance policies, etc.]

SCHEDULE B – BENEFICIARIES

[List each Beneficiary’s full legal name, relationship to Grantor, and date of birth/formation.]

[// GUIDANCE:
1. Verify all Hawaiʻi-specific statutory requirements, including notice to beneficiaries under the Hawaiʻi Uniform Trust Code.
2. Confirm federal and state tax objectives with tax counsel.
3. For real property, record a Certificate of Trust pursuant to Hawaiʻi law to preserve privacy and facilitate title transfer.]