A well drafted trust instrument will generally prescribe the method and manner of substitution, succession, and selection of successor trustees. Such provisions must be carefully followed. A trustee may be given the power to appoint his or her own successor. Also, a trustor may reserve, or a beneficiary may be given, the power to change trustees. This form is a sample of a resignation by the trustee prior to the appointment of a new trustee.
This form is a generic example that may be referred to when preparing such a form for your particular state. It is for illustrative purposes only. Local laws should be consulted to determine any specific requirements for such a form in a particular jurisdiction.
Hawaii Resignation by Trustee Named in a Trust Instrument refers to the legal process in Hawaii where a trustee named in a trust document voluntarily steps down from their role as trustee. This action is governed by specific laws and regulations defined in the trust instrument. In Hawaii, there are several types of resignations that a trustee may consider: 1. Voluntary Resignation: A trustee may choose to resign from their role voluntarily for various personal reasons. This involves formally notifying the beneficiaries and other trustees of their decision through a written resignation letter. 2. Successor Trustee Appointment: In some cases, a trustee named in the trust instrument may resign with the intention of appointing a successor trustee to take over their responsibilities. The resignation must clearly specify the individual or entity chosen as the new trustee. 3. Court-Ordered Resignation: In certain situations, the court may order a trustee to resign from their position due to misconduct, incapacity, or failure to fulfill their fiduciary duties. This type of resignation usually follows a legal proceeding initiated by the beneficiaries or interested parties. 4. Resignation with Trustee Discharge: Trustees who wish to resign while also seeking to be released from any potential liability may file a Petition for Discharge. This process involves providing a final accounting of trust assets, informing beneficiaries of pending resignation, and seeking court approval to be discharged from all obligations. The resignation process typically requires compliance with specific legal procedures outlined in the trust instrument and Hawaii state laws. The trustee should carefully review the trust document to understand any specific provisions regarding the resignation process, notice requirements, and selection of a successor trustee. It is crucial for the trustee to consult with an experienced attorney specializing in trust law in Hawaii, to ensure proper adherence to the legal requirements and protection of their rights and interests throughout the resignation process.
