Disclaimer: This article provides general information and does not constitute legal advice.
Detailed Answer
When a person passes away in Hawaii, the court supervises the estate’s administration under the Hawaii Uniform Probate Code (Chapter 560 of the Hawaii Revised Statutes). Below is an overview of the steps your personal representative (also known as an executor or administrator) must follow to inventory and distribute assets among multiple heirs.
- Appointment of Personal Representative: File a petition with the probate court in the decedent’s circuit court. Once approved, the court issues Letters of Administration under HRS Chapter 560-3 (see HRS 560:3-102).
- Collect and Inventory Assets: Within three months, the personal representative must file an inventory and appraisal of all estate property under HRS 560:3-302. This includes real estate, bank accounts, investments, and personal property.
- Notice to Creditors: Publish a notice and mail direct notice to known creditors under HRS 560:3-801. This allows creditors to file claims against the estate.
- Payment of Debts and Expenses: Pay valid creditor claims, funeral expenses, taxes, and administrative costs before distribution. The priority of claims follows HRS 560:3-803.
- Determine Entitled Heirs: If the decedent left a will, distribute according to its terms. In an intestate case (no valid will), use the intestacy rules in HRS 560:2-201 to identify heirs and their shares.
- Prepare Proposed Distribution: Draft a plan showing each heir’s share. For example, if three siblings are the only heirs, each is entitled to one-third under intestacy.
- Petition for Distribution and Approval: File a petition for order of distribution under HRS 560:3-613. The court reviews and approves the proposed plan.
- Distribute Assets: After court approval, transfer assets to heirs. Real property deed transfers and bank account changes complete the distribution. Keep records of all transfers.
- Final Accounting and Closing: File a final account and request discharge of the personal representative under HRS 560:3-711. Once approved, the estate closes.
Helpful Hints
- Gather documentation early: titles, deeds, and account statements.
- Use certified appraisals for valuable items to avoid disputes.
- Maintain clear communication with heirs to manage expectations.
- Meet all notice deadlines to protect the estate from late claims.
- Consult an attorney if the estate holds complex assets or faces contested claims.