Disclaimer: This article provides general educational information about Hawaii probate law only. It does not constitute legal advice. For guidance on your specific situation, consult a licensed attorney.
Detailed Answer
1. Inventory Your Estate Assets
The personal representative (often called the executor) must compile a full list of estate assets, including:
- Real property (homes, land).
- Bank and brokerage accounts.
- Stocks, bonds, retirement plans.
- Personal property (vehicles, jewelry, electronics).
- Digital assets and business interests.
Collect title documents, account statements, and appraisals to determine each asset’s fair market value.
2. Identify and Classify Debts and Fees
The estate must cover funeral costs, court fees, taxes, and creditor claims before distributing assets to beneficiaries. Common categories include:
- Administration expenses: Court filing fees, attorney fees, appraiser fees. (See HRS §560-3-801.)
- Funeral and burial expenses.
- Taxes: Estate, inheritance, income taxes.
- Secured and unsecured creditor claims.
3. Pay Debts in Order of Priority
Hawaii law sets a strict order for paying claims. Follow HRS §560-3-803:
- Administrative expenses and costs of administration.
- Funeral and burial expenses.
- Family allowance and homestead exemption (HRS §560-3-101).
- Taxes and debts with higher priority.
- General unsecured creditors.
4. Calculate the Remaining (Residual) Estate
Once all debts, taxes, and administration costs are paid, the remaining balance is the residue. To determine this:
- Total all asset values.
- Total all debts, fees, taxes, and allowances.
- Subtract liabilities from assets.
That net figure is what beneficiaries receive under the will or Hawaii’s intestacy rules (HRS §560-2-104).
Helpful Hints
- Keep detailed records of every asset valuation and payment.
- File creditor claims quickly—Hawaii law limits claim periods.
- Use probate court checklists available online.
- Secure valuable items until distribution.
- Consult accountants for tax calculations.
- Consider bonding the personal representative to protect against disputes.