Disclaimer: This article is for informational purposes only and does not constitute legal advice.
Detailed Answer
When a decedent’s estate proceeds through probate in Hawaii, the court appoints an administrator (also called a personal representative) to gather assets, pay debts and distribute the remainder to heirs or beneficiaries. To protect the estate and its interested parties, Hawaii law builds in multiple checks on the administrator’s performance of fiduciary duties and enforcement of bond requirements.
1. Bond Requirement and Surety Liability
Under Hawaii Revised Statutes §560:3-601, the court generally requires an administrator to post a surety bond before taking control of estate assets. The bond amount usually equals or exceeds the total value of estate assets. The surety company guarantees payment on any valid claims arising from the administrator’s misconduct or negligence. In some cases, such as where the will waives bonding or all beneficiaries consent, the court may accept a cash or security deposit in lieu of bond under HRS §560:3-603.
HRS §560:3-601: https://www.capitol.hawaii.gov/hrscurrent/Vol12_Ch0501-0588/HRS0560/HRS_0560-003-0601.htm
HRS §560:3-603: https://www.capitol.hawaii.gov/hrscurrent/Vol12_Ch0501-0588/HRS0560/HRS_0560-003-0603.htm
2. Mandatory Inventory and Appraisals
The administrator must file a detailed inventory of all estate assets—real property, personal property, bank accounts—within three months of appointment. This requirement under HRS §560:3-702 ensures transparency about estate value and composition before distributions begin.
HRS §560:3-702: https://www.capitol.hawaii.gov/hrscurrent/Vol12_Ch0501-0588/HRS0560/HRS_0560-003-0702.htm
3. Periodic and Final Accountings
The personal representative must file interim accountings if the court orders them, and a final accounting before closing the estate. Under HRS §560:3-706, each accounting lays out receipts, disbursements, distributions and fees. Interested parties—creditors, heirs and beneficiaries—receive notice and can object to any improper transactions.
HRS §560:3-706: https://www.capitol.hawaii.gov/hrscurrent/Vol12_Ch0501-0588/HRS0560/HRS_0560-003-0706.htm
4. Notice to Creditors and Interested Parties
The administrator must publish notice to creditors and mail notice to known creditors under HRS §560:3-903. This requirement gives creditors an opportunity to file claims before a deadline and to hold the administrator accountable for timely payments.
HRS §560:3-903: https://www.capitol.hawaii.gov/hrscurrent/Vol12_Ch0501-0588/HRS0560/HRS_0560-003-0903.htm
5. Judicial Oversight and Removal for Cause
The probate court retains broad authority to supervise the administrator. Under HRS §560:3-1001, any interested party can petition to remove an administrator for mismanagement, conflict of interest or breach of fiduciary duty. The court can then surcharge the administrator, call the bond, or impose other remedies.
HRS §560:3-1001: https://www.capitol.hawaii.gov/hrscurrent/Vol12_Ch0501-0588/HRS0560/HRS_0560-003-1001.htm
6. Civil and Criminal Penalties
Administrators who willfully misapply estate assets or violate their fiduciary duties may face civil surcharge actions and criminal penalties under HRS §560:7-501. Surcharges can exceed bond limits if a court finds gross misconduct.
HRS §560:7-501: https://www.capitol.hawaii.gov/hrscurrent/Vol12_Ch0501-0588/HRS0560/HRS_0560-007-0501.htm
Helpful Hints
- Review the administrator’s bond and ensure it names all beneficiaries and creditors as protected parties.
- Monitor filing deadlines for inventory and accountings; request court status updates if filings lag.
- Keep a copy of published and mailed notices to creditors to confirm compliance.
- Consult with an attorney if you suspect mismanagement or improper distributions.
- File objections or petitions promptly to protect your right to surcharge the bond or remove the administrator.