Disclaimer: This article provides general information about Hawaii probate procedures and does not constitute legal advice. For personalized guidance, consult a qualified attorney.
Detailed Answer
When a person dies, their bank accounts form part of the estate and must go through the probate process before beneficiaries can access the funds. In Hawaii, probate is governed by Chapter 560 of the Hawaii Revised Statutes. The following steps outline how to access and withdraw money from a deceased person’s bank account:
- Identify the Estate Representative. If the deceased left a valid will, the executor named in the will becomes the personal representative upon appointment by the court. If there is no will, the court appoints an administrator—typically the closest next of kin—according to HRS §560:2-201.
- Open Probate and Obtain Letters. File a petition for probate in the Circuit Court of the county where the decedent lived. Once the court approves and issues Letters Testamentary or Letters of Administration, the representative has authority to manage estate assets. This authority is granted by HRS §560:3-201.
- Provide Documentation to the Bank. Present the bank with certified copies of the Letters and the death certificate. Under HRS §560:1-301, the representative may collect estate assets, including proceeds held in financial institutions.
- Settle Debts and Expenses. Use funds from the account to pay valid estate expenses and creditor claims. The personal representative must comply with the creditor notice requirements found in HRS §560:3-202.
- Distribute Remaining Funds. After debts and taxes are paid, distribute the residual funds to beneficiaries according to the will or Hawaii’s intestacy laws (HRS §560:2-1001).
Small Estate Affidavit
If the total value of the estate is below $100,000, Hawaii law allows simplified summary administration. Under HRS §560:5-101, a signed affidavit may suffice in place of full probate. Banks often accept this affidavit alongside a death certificate to release funds.
Example Scenario
Jane, the daughter and named executor in her mother’s will, petitions Honolulu Circuit Court for Letters Testamentary. After issuance, she visits the bank with certified Letters and her mother’s death certificate. The bank permits Jane to withdraw funds, which she uses to pay funeral expenses and outstanding medical bills before distributing the balance to the beneficiaries.
Helpful Hints
- Contact multiple banks early to learn their specific probate requirements.
- Keep detailed records of all transactions to the estate file.
- Notify creditors promptly and post required notices in local newspapers when necessary.
- Consult an attorney if estate assets exceed $100,000 or if complications arise.
- Consider small estate procedures if eligible to save time and cost.