What Steps Protect a Minor’s Inheritance When the Decedent Did Not Leave a Will in HI? | Hawaii Probate

Disclaimer: This article is for educational purposes only and does not constitute legal advice. Consult a licensed attorney in Hawaii for guidance.

Detailed Answer

When a person dies without a will (intestate) in Hawaii, the probate process under HRS Chapter 560 governs distribution of assets. Minors cannot directly receive property until reaching the age of majority. To protect a minor’s inheritance, the following steps apply:

1. Open Probate and Appoint an Administrator

Any interested person files a petition in the circuit court of the decedent’s residence. The court appoints an administrator to gather assets, pay debts, and distribute the estate under HRS Chapter 560.

2. Establish a Guardianship of the Minor’s Estate

Under HRS Chapter 560, Part V, the court appoints a guardian to manage the minor’s share. The guardian must post a bond (HRS §560-2-401) and file annual accountings.

3. Utilize the Uniform Transfers to Minors Act (UTMA)

As an alternative, assets can pass to a custodian under the Uniform Transfers to Minors Act (HRS Chapter 554D). The custodian holds property until the minor turns 21 (or older if specified).

4. File Periodic Accountings and Reports

Guardians and custodians must submit annual accountings to the court to demonstrate proper management. The court reviews transactions and ensures the minor’s funds remain protected.

5. Final Distribution

Once the minor reaches the statutory age, the court orders distribution of remaining assets to the former minor directly. If UTMA applies, the custodian transfers assets at the age stated in the gift.

Helpful Hints

Start probate promptly to avoid delays and penalties.
Consider UTMA custodianship for simpler administration.
Maintain clear records of all financial transactions.
Ensure the guardian or custodian posts the required bond.
Seek legal advice from a probate attorney in Hawaii.