A trust is the legal relationship between one person, the trustee, having an equitable ownership or management of certain property and another person, the beneficiary, owning the legal title to that property. The beneficiary is entitled to the performance of certain duties and the exercise of certain powers by the trustee, which performance may be enforced by a court of equity. Most trusts are founded by the persons (called trustors, settlors and/or donors) who execute a written declaration of trust which establishes the trust and spells out the terms and conditions upon which it will be conducted. The declaration also names the original trustee or trustees, successor trustees or means to choose future trustees.
A Hawaii Trust Agreement to Hold Funds for a Minor Resulting from the Settlement of a Personal Injury Action Filed on Behalf of the Minor is a legal document that establishes a trust to safeguard and manage the funds awarded to a minor involved in a personal injury lawsuit. This agreement ensures that the settlement funds are properly allocated and protected for the minor's benefit until they reach a specific age or milestone. One type of Hawaii Trust Agreement for a minor resulting from a personal injury action is a Fixed Age Trust. In this type of trust, the funds are held until the minor reaches a specified age, typically 18 or 21 years old. Upon reaching this age, the funds are then directly transferred to the minor, giving them full control over the money. Another type of Hawaii Trust Agreement is called a Drip Trust or Graduated Distribution Trust. With this trust, the settlement funds are gradually distributed to the minor over a period of time or predetermined milestones. It provides a more structured approach to ensure that the funds are not squandered all at once and can be used for important needs such as education, healthcare, or housing expenses. The Hawaii Trust Agreement also outlines the roles and responsibilities of the trustee, who manages and administers the trust on behalf of the minor. The trustee is typically a trusted adult or a professional fiduciary who is responsible for investing and preserving the settlement funds to ensure they grow over time. The trustee must also make decisions regarding disbursements from the trust that align with the best interests and welfare of the minor. Additionally, the Hawaii Trust Agreement for a minor resulting from a personal injury action includes provisions for the termination or modification of the trust under specific circumstances. For instance, if the minor passes away before receiving the full amount, the agreement may determine how the remaining funds should be distributed, such as to the minor's estate or to designated beneficiaries. Overall, the Hawaii Trust Agreement to Hold Funds for a Minor Resulting from Settlement of a Personal Injury Action Filed on Behalf of the Minor provides a legal framework to protect and preserve the settlement funds, ensuring they are used for the minor's benefit and future well-being.
