If you’re an heir to an estate, you may have heard about the probate process. While Hawaii’s probate is less cumbersome than that of some states, it can still take months or even years to complete.
If you need the money before then, probate funding from Rockpoint Probate Funding may be the solution. We can provide an advance on your inheritance in as little as one day. Unlike traditional loans, you don’t have to pay it back if your inheritance doesn’t come through.
In the meantime, you may be interested in learning more about how probate works in Hawaii.
What Does Probate Mean?
Probate is the legal process of reviewing a deceased person’s property and distributing it to the rightful heirs. It typically involves authenticating the will, identifying the beneficiaries, calculating assets, and settling debts. The probate process also governs estate distribution for people who died without a will.
Hawaii probate proceedings can be either informal or formal. Formal cases involve hearings before a judge, while informal cases don’t require court appearances. Not all kinds of property must go through probate before distribution or ownership transfers.
Does Hawaii Require Probate in All Cases?
Hawaii requires probate for the majority of cases. However, there are exceptions for certain asset types and estates under a certain value. If an estate is worth $100,000 or less, an heir can file a small estate affidavit to assert their legal claims without going through probate.
Generally, the simpler and smaller the estate, the faster the probate process. Uncomplicated probate cases may finish in a few months, but most take at least 6-12 months. Cases involving contested wills, pending claims against the estate, or out-of-state assets can extend the timeline.
Which Assets Need To Go Through Hawaii Probate?
Hawaii typically requires the following property to go through probate:
- Individually owned property: This includes bank accounts, real estate, vehicles, and personal belongings owned solely by the deceased person.
- Tenancy-in-common real estate: If the decedent shared ownership rights of a property, their share must go through probate.
- Business interests: The deceased person’s interest in a corporation or partnership typically must go through probate.
- Investment assets: Stocks, bonds, and mutual funds owned by the decedent alone are subject to probate.
Which Assets Don’t Need To Go Through Hawaii Probate?
Property that automatically transfers ownership to the beneficiary upon the owner’s death is not subject to probate. This includes the following:
- Jointly owned assets: Joint property will pass directly to the surviving owner with no need for probate.
- Life insurance and retirement accounts: If life insurance policies and retirement accounts like an IRA or 401(k) have a named beneficiary, the court doesn’t need to be involved.
- Property in trust: Living trusts transfer assets to trustees, who transfer assets to the named beneficiary when the estate owner dies.
- Transfer-on-death designations: If the decedent registered their real state, bank accounts, securities, or vehicles as transferable-on-death or payable-on-death, probate is not necessary.
What Is the Hawaii Probate Process?
Hawaii probate can be informal (no court appearances), formal unsupervised (a judge provides instruction and approves decisions), or formal supervised (a judge oversees the full case in light of major disputes).
The general steps involved in Hawaii probate are as follows:
- Opening probate: Someone (typically the estate executor) files a petition with the court.
- Appointing an executor: The court will appoint an executor, usually the person named in the will.
- Notifying creditors: The executor must notify heirs as well as any creditors, who typically have four months to file any claims against the estate.
- Cataloging assets: The executor must inventory and calculate the value of the estate’s property, hiring professional appraisers when necessary.
- Settling debts: The executor must pay outstanding financial liabilities and file tax returns.
- Distributing property: After fulfilling all their duties, the executor petitions the court to distribute the remaining assets.
What Happens If Someone Dies Without a Will?
Proper estate planning can control who receives what after a person dies. However, if there is no will, the probate process will distribute property according to Hawaii’s laws of intestate succession. That means the estate goes to the former owner’s closest relatives. State law determines the order of heirs and the amount they receive.
For example, if the person wasn’t married but had children, the children inherit the entire estate. If they had a spouse but no descendants or living parents, the spouse receives everything. Their surviving parents would inherit the estate if they had no spouse or descendants.
How Much Does Hawaii Probate Cost?
While informal probate proceedings and small estate procedures can help keep costs down, probate costs vary widely by case. The following Hawaii probate fees may apply:
- Court filing fees to open probate
- Additional court fees
- Legal fees, if a probate attorney works on the case
- Executor compensation fees, which state law requires to be “reasonable”
- Professional fees, such as for appraisals or accounting services
- Extraordinary fees in cases of pending litigation, disputed estates, or other complexities
These fees typically come out of the estate funds.
Understanding the Role of an Executor in Hawaii Probate
The executor plays a crucial role in the Hawaii probate process, acting as the personal representative responsible for managing the estate. Once appointed by the court, the executor’s duties include ensuring that the deceased’s wishes are carried out as stipulated in the will. This involves notifying heirs and creditors, inventorying assets, and ensuring that all debts and taxes are paid before distributing the remaining assets to beneficiaries.
In more complex cases, the executor may need to navigate various legal and financial challenges, requiring a strong understanding of the probate laws and procedures. This role can also be time-consuming, as the executor must keep meticulous records and communicate regularly with the court. Because of the responsibilities associated with being an executor, it’s often advisable to consult with legal professionals to ensure that all duties are fulfilled correctly and efficiently.
The Importance of Hiring a Probate Attorney
Although it is possible to navigate the probate process without legal assistance, hiring a probate attorney can greatly simplify the experience and help avoid potential pitfalls. An attorney can provide guidance on the applicable laws, help prepare necessary documents, and represent the estate in any court hearings. Their expertise can also ensure that all creditors are notified properly and that any claims against the estate are managed effectively.
Moreover, hiring a probate attorney can alleviate some of the emotional burdens that heirs and beneficiaries may experience during a difficult time. They can help resolve disputes that may arise between family members or other interested parties, often preventing long and costly legal battles. By having a professional advocate, executors can focus more on fulfilling their responsibilities and less on the complexities of the legal process.
Can I Access My Hawaii Inheritance Early?
As an heir, you may be concerned about how long Hawaii probate will take. An inheritance cash advance may be the answer if you need funds now. At Rockpoint Probate Funding, we can give you cash against your pending claim to the estate.
The process doesn’t require a credit check, is completely confidential, and provides your money in as little as one day. Because it is non-recourse funding, you owe us nothing if you don’t receive your inheritance. Although often called “estate loans” or “probate loans,” inheritance funding differs from traditional loans in this way.
Collect Your Inheritance Now With Rockpoint Probate Funding
When you receive a cash advance through Rockpoint Probate Funding, you can use it for anything you like. You can put it toward living expenses, college tuition, home improvement, or a family vacation.
If you need money before your Hawaii probate case concludes, call (888) 263-8588 to learn more.
