How Much Does Probate Cost in Hawaii?

Probate can follow after a loved one dies, which could cost beneficiaries time and money. This legal process settles the estate of a deceased person. As with other states, probate expenses in Hawaii–including court fees, attorney fees and administrative costs–can quickly add up, depending on the complexity of the estate. Hawaii’s specific legal rules and property laws also affect the overall cost of probate.

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How Probate Works in Hawaii

Probate ensures that the assets of a deceased person are passed on according to their will. In the event that no will exists, the estate will be distributed following state law.

This process involves confirming the validity of the will and appointing a personal representative to handle the estate. For estates valued at $100,000 or less, Hawaii offers a simplified process to speed up asset distribution.

Probate begins with filing a petition in the circuit court of the county where the deceased resided. This petition typically includes the will, if available, and a request to appoint a personal representative.

Once the court approves the petition, the representative must notify creditors and beneficiaries, allowing them time to make claims against the estate. This step settles all debts before any assets could get distributed.

The representative must prepare an inventory of the estate’s assets, which can include real estate, bank accounts and personal property. This inventory is then submitted to the court for review.

Probate Costs to Consider in Hawaii

In Hawaii, probate can cost between a few thousand dollars and upwards of $10,000 or more. This estimate will vary depending on the size of the estate, complexity and circumstances. Here’s a breakdown of four expenses:

Court fees: The probate process in Hawaii involves various court fees, which can include filing fees for submitting the will and other necessary documents. These fees are typically based on the value of the estate and account for a percentage of the estate.
Attorney fees: In Hawaii, attorney fees may be charged either hourly or as a percentage of the estate’s value. Although these costs can accumulate, legal guidance can help manage the probate process within the legal requirements and potentially save you money over time.
Executor fees: Executors are entitled to compensation for their time and effort in managing the estate. In Hawaii, executor fees are generally based on a percentage of the estate’s value, though the exact amount can vary. You should discuss and agree upon these fees upfront to avoid any misunderstandings later.
Appraisal and valuation costs: Estates often require professional appraisals to determine the value of assets such as real estate, jewelry or collectibles. These appraisal costs can vary depending on the complexity of the estate and the number of assets involved. Accurate appraisals are important for determining a fair distribution and tax calculations.

How to Avoid Probate in Hawaii

Probate in Hawaii can be time-consuming and expensive, causing added stress for loved ones. But, with proper planning, individuals can use legal options to avoid probate and settle their estate more quickly and efficiently.

One of the most effective ways to avoid probate in Hawaii is by establishing a living trust. A living trust allows individuals to transfer ownership of their assets into the trust while they are still alive. Upon their death, the assets are distributed to the beneficiaries named in the trust without the need for probate. This not only speeds up the distribution process but also maintains privacy, as trusts are not public records.

Another common way to avoid probate is through joint ownership of property. In Hawaii, if property is owned jointly with rights of survivorship, it automatically passes to the surviving owner upon death. This means the property does not go through the probate process, allowing for a quicker and simpler transfer of assets.

Setting up proper beneficiary designations is another way to bypass probate. By designating beneficiaries for life insurance policies, retirement accounts and payable-on-death bank accounts, the assets go directly to the named individual after death. This allows for a faster transfer and helps avoid the delays and costs associated with probate.

Bottom Line

Managing the costs of probate in Hawaii can be challenging, but understanding the main expenses could help you plan effectively. Probate costs typically include court fees, attorney fees and executor fees, which can vary depending on the estate’s size and complexity. While court fees are usually fixed, attorney and executor fees may be based on a percentage of the estate’s value or the work involved. Smaller estates may qualify for simplified probate, reducing costs and speeding up the process.

Estate Planning Tips

A financial advisor can help you create a personalized estate plan to manage and distribute your assets. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
If you want to create your own estate plan, make sure you read this article to avoid common DIY estate planning pitfalls.