Disclaimer: This article is for educational purposes only and does not constitute legal advice. Consult a licensed attorney in Hawaii for guidance on your situation.
Detailed Answer: Bringing Real Property into a Hawaii Probate Estate
When a decedent owned real property solely in their name, the property does not transfer automatically to heirs or creditors. A personal representative must bring that property into the probate estate to pay valid claims. Below are the key steps under Hawaii law:
- Open a Probate Case. File a Petition for Administration in the Circuit Court where the decedent lived. Include the death certificate and original will (if any). (See HRS §560:2-101: hrscurrent/Vol10_Ch0560-0580/HRS0560/HRS_0560-002-0101.htm.)
- Appointment of Personal Representative. The court issues Letters Testamentary (for a will) or Letters of Administration (intestate). These letters grant authority to manage estate assets.
- Record Authority to Act. Record certified Letters with the Bureau of Conveyances to clear title and show the estate’s interest in the property. (See HRS §502-31: hrscurrent/Vol09_Ch0471-0508/HRS0502/HRS_0502-0031.htm.)
- Notify Creditors. Publish a notice to creditors once in a statewide newspaper and mail direct notice to known creditors. (See HRS §560:3-403: hrscurrent/Vol10_Ch0560-0580/HRS0560/HRS_0560-003-0403.htm.)
- Inventory and Appraise the Property. Within three months of appointment, prepare and file an inventory showing the fair market value of the real property. (See HRS §560:3-302: hrscurrent/Vol10_Ch0560-0580/HRS0560/HRS_0560-003-0302.htm.)
- Obtain Court Order to Sell (if Needed). To liquidate the property for payment of claims, file a motion for a sale order. The court sets terms and approves the sale. (See HRS §560:3-812: hrscurrent/Vol10_Ch0560-0580/HRS0560/HRS_0560-003-0812.htm.)
- Sell and Transfer Title. Conduct the sale according to the court’s order. Use an Executor’s or Administrator’s Deed to transfer legal title to the buyer. (See HRS §560:3-702: hrscurrent/Vol10_Ch0560-0580/HRS0560/HRS_0560-003-0702.htm.)
- Pay Claims and Close the Estate. Distribute sale proceeds to pay administrative expenses and creditor claims in priority order. File a final accounting and petition for discharge of the personal representative. (See HRS §560:3-703.)
Helpful Hints
- Start probate promptly to avoid penalty for late creditor claims.
- Keep detailed records of notices, appraisals, and sale transactions.
- Verify Notices to Creditors meet the publication requirements under HRS §560:3-403.
- Consult a real estate appraiser to establish fair market value.
- Review buyer financing deadlines before court sale approval.
- Ask the court for guidance if multiple heirs or liens exist.