Haw. Prob. R. 108

As amended through September 30, 2024

Rule 108 - Budgets

Where it is anticipated that regular distributions will be made for the benefit of the protected person during the conservatorship administration, the petition for appointment of the conservator, and all subsequent petitions for approval of accounts, shall include a proposed itemized budget of income and expenditures, including all sources of income no matter where derived or to whom paid for the benefit of the protected person. Such budget as shall be approved by the court shall control the actions of the conservator until amended by court order, provided that:

(1) the conservator may vary the allocation of funds expended between approved budget categories, as long as the overall budget limitations are not exceeded;

(2) the conservator may not in any accounting year exceed the overall approved budget by more than ten percent without prior court order;

(3) where an approved budget is intended to be in effect for more than one calendar year, the budget amounts shall be automatically increased to reflect inflation based on changes in the Consumer Price Index for urban Honolulu as established by the United States Department of Commerce;

(4) necessary medical and dental expenses of an adult protected person, regardless of amount, may be paid without prior court order;

(5) extraordinary necessary medical and dental expenses of a minor may be paid without prior court order; and

(6) all taxes owed by the protected person may be paid without prior court order.

Haw. Prob. R. 108

Amended April 28, 2006, effective 7/1/2006.

COMMENTARY:

By having a pre-approved budget, conservatorship administration should be better planned and more responsive to the protected person's needs. Having a clear budget will also prevent misuse of funds resulting from the conservator's misunderstanding of his or her authority. Because a budget is by definition anticipatory, the rule provides several degrees of flexibility, to prevent unnecessary court proceedings for minor items (shifting between budget categories or small variations from the approved budget) and essential expenditures (medical and dental costs and taxes). However, a distinction is drawn between the medical and dental expenses of an adult (which can be paid in total without court approval) and those of a minor (which are limited to extraordinary expenses). This distinction is drawn because of the parents' continuing obligation of support of the minor, which obligation includes provision of normal medical and dental care. Catastrophic expenses of a minor, therefore, may be paid without prior court order.

"Necessary" medical and dental expenses are those that are not purely cosmetic in nature and would include those of a cosmetic nature where a medical doctor certifies that such expenses are necessary to the mental or emotional health of the protected person.

The rule requires full disclosure of all funds available to protected person, such as social security benefits, retirement benefits, and annuities, whether paid to the conservator or some other person, so that the court may effectively evaluate the suggested budget.