Hawaii Trust Administration
Honolulu Trust Administration Attorney

          While some consider being appointed a trustee of a trust an honor, many soon discover that administering a trust is often times another job unto itself and can be overwhelming.  As a trustee, you are placed in a position of trust and confidence; this should not be taken lightly since a trustee has numerous fiduciary responsibilities and duties.  A trustee who is unaware or is not properly informed of their obligations as trustee are often sued by the trust beneficiaries. That result thwarts one of the purposes and benefits of creating a trust, which is to avoid the costs and time delays of court.  You may know or have heard of friends or family members who are embroiled in litigation regarding a trust or estate. Many of these situations can be avoided if the trustee is properly advised and informed of their duties.  Two of the most fundamental duties a trustee has are the duty of loyalty and duty to exercise reasonable care and skill.

  • Duty of Loyalty:  A trustee is required to administer the trust solely in the interest of the beneficiaries.  This duty also prohibits misappropriation of trust property or opportunities that may benefit the trust.  Furthermore, a trustee cannot transact business with the trust that benefits the trustee either directly or indirectly.
  • Duty to Exercise Reasonable Care and Skill:  A trustee can be held personally liable for any losses sustained by the trust due to his or her failure to exercise reasonable care and skill.  If a trustee has a special skill set, he has a duty to exercise those skills.  However, a trustee is not liable merely because in hindsight his or her actions were incorrect.  A trustee's conduct is only required to be reasonable in light of the facts and circumstances existing at the time of the trustee’s decision. 

        Our Billing Practices for Trust Administration matters.  For some, a firm's billing methods are a source of anxiety and trepidation.  At the Law Office of Samuel K.L. Suen, LLLC, we believe in simplicity and transparency when it comes to billing and we take time to explain to our clients the fees and costs involved.  Our invoices clearly detail and describe all completed tasks and the time taken to accomplish them.  For trust administration matters, we use an hourly rate and bill in increments of 6 minutes (or 0.1 of an hour).  We will request an initial refundable retainer from which fees and costs will be billed against.  If there are any funds remaining at the conclusion of the matter, they will be returned to the client.  If the retainer is depleted beforehand, we will send clients monthly invoices with payment due 30 days thereafter.  

         How we can help.  It is important that the trust is administered in an appropriate manner.  If not, it may lead to discord and mistrust between the trustee and beneficiaries, which could develop into litigation that exerts a costly toll monetarily and on relationships.  However, by properly administering a trust, litigation can be avoided. In addition to inventorying and marshaling assets, preparing accountings and settling outstanding claims, our firm will help you communicate with the beneficiaries to keep them apprised of the administration.  If you are a trustee and need assistance with administering a trust or estate, the Law Office of Samuel K.L. Suen, LLLC, can advise you as to your responsibilities and help meet and fulfill your fiduciary duties to the beneficiaries and heirs in an efficient and cost-effective manner.

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Law Office of Samuel K.L. Suen, LLLC  | Phone:  808.282.4411 | Fax:  888.696.7055 | sam@sklslaw.com 
 1575 South Beretania Street, Suite 205 Honolulu, Hawaii  96826 
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