Disclaimer: This article is for educational purposes only and does not constitute legal advice.
Detailed Answer
During the probate process in Hawaii, the personal representative (sometimes called the executor or administrator) handles estate expenses and ongoing bills to preserve assets and pay valid debts. Here are the key steps:
Appointment and Powers of the Personal Representative
Once the court issues Letters of Administration or Letters Testamentary, the personal representative gains authority to manage estate affairs under Hawaii’s Uniform Probate Code. See HRS §560:3-814 for general powers and protections: HRS §560:3-814. This includes collecting assets, selling property, and paying expenses.
Establishing an Estate Bank Account
The personal representative should open a separate estate bank account. Deposit all incoming funds—such as rental income and life insurance proceeds—and use this account exclusively to pay estate expenses and bills. This prevents commingling personal and estate funds.
Managing Ongoing Bills and Expenses
Common ongoing expenses include mortgage payments, property taxes, insurance premiums, utilities, and maintenance costs. The personal representative should:
- Review existing autopay and billing statements.
- Notify creditors and service providers of the death.
- Keep utilities active to preserve property value.
- Secure physical assets (e.g., lock homes, maintain lawn).
Paying Debts and Claim Priority
After notifying creditors through publication and direct notice pursuant to HRS §560:3-905, the personal representative reviews claims. Hawaii law sets a priority order for payment. Funeral expenses, administrative costs, and taxes typically come first. See HRS §560:3-801 for classification and priority of claims.
Record Keeping and Court Reporting
Keep detailed records of all income and disbursements. Final accounting must be filed with the court before closing the estate. Accurate records ensure transparency and reduce disputes.
Helpful Hints
- Create a separate estate bank account promptly.
- Maintain an expense ledger with receipts.
- Send timely notices to creditors to avoid late fees.
- Follow Hawaii’s claim priority rules under HRS §560:3-801.
- Notify utility companies and insurance providers.
- Secure and insure estate property against loss.
- Consult a probate attorney for complex estates or disputes.