When it comes to estate planning in Hawaii, understanding which assets do not pass under a will is crucial. Certain types of property bypass the probate process, providing a smoother transition of assets to beneficiaries. In this article, we will delve into the various forms of property that are exempt from a will in Hawaii, including joint property, life insurance policies, and trusts.
Joint Property
One type of property that does not pass under a will in Hawaii is joint property. When property is owned jointly with rights of survivorship, the surviving owner automatically inherits the deceased owner’s share. This means that the property does not need to go through probate and will pass directly to the surviving owner.
Legal Reference: Hawaii Revised Statutes § 509-1
Life Insurance Policies
Life insurance policies are another asset that typically does not pass under a will in Hawaii. When a policyholder designates a beneficiary on their life insurance policy, the proceeds from the policy are paid directly to the named beneficiary upon the policyholder’s death. These proceeds are not considered part of the probate estate and are exempt from the will.
Legal Reference: Hawaii Revised Statutes § 431:10-232
Trusts
Assets held in a trust are also exempt from passing under a will in Hawaii. A trust is a legal entity that holds assets on behalf of a beneficiary. When the creator of the trust (the grantor) passes away, the assets held in the trust are distributed according to the terms of the trust document, bypassing the probate process.
Legal Reference: Hawaii Revised Statutes § 560:7-101
Maximizing Your Estate Plan
Understanding which assets do not pass under a will in Hawaii is essential for creating a comprehensive estate plan. By utilizing joint property, life insurance policies, and trusts, individuals can ensure a smoother transfer of assets to their intended beneficiaries. Consulting with a qualified estate planning attorney can help you navigate the complexities of estate planning and ensure that your wishes are carried out effectively.
Buried in Work’s Additional Resources
Buried in Work provides Hawaii state-specific service provider directories and information related to estate preparation, end-of-life tasks, and estate transition information. Click here to learn more.
