Services | Okura & Associates Hilo, HI 96720

Trusts and Estates

Estate Planning
We help our clients avoid probate. However, when a person dies without having done proper estate planning, a probate is often necessary. Probate is a court proceeding. The laws governing probate in Hawaii are Hawaii state laws. There are no federal probate laws. Probate in Hawaii is necessary when a person dies owning any real estate in his or her name alone, no matter how small the value of the real estate. Probate is also required when the total value of all “personal property” owned in his or her name alone is worth more than $100,000. “Personal property” is any asset which is not real estate.
Trusts
Trust: An arrangement in which one person (the “Settlor” or “Grantor”) transfers property to another person (the “Trustee”) to be held for the benefit of others (the “Beneficiaries”). The most common trust today is the self trusteed revocable living trust, where a person transfers property to herself as trustee, for the benefit of herself as beneficiary. Upon the person’s death, the assets held in the name of the trust do not have to go through probate. However, the trust estate will still need to be administered, which in many ways is similar to a probate but does not involve a court.
Probate
The law requires probate for a good reason. If a person dies, probate makes sure that the property goes to the people who are supposed to inherit it. The probate law requires that a written notice be sent to the persons named in the will and also to the persons who would have inherited if there had been no will. Each one has the right to see the will, see what was owned, and make sure that the assets are divided correctly. In a probate, the court appoints someone (usually a spouse or child, if any) as “personal representative.” In the past this person used to be called the “executor.” The personal representative has the power to gather the assets of the estate, pay bills, and distribute the assets according to the will. If there is no will, the assets are distributed according to the “law of intestacy.” The law of intestacy spells out who inherits assets when there is no will. If there is any problem during the probate, the court can make sure things are done fairly.