The loss of a parent is mostly unexpected and not an easy time for the family. There are many things they leave behind, either unattended and not fully addressed. The reason their loss raises many questions about the family’s affairs, including property matters, is that they are difficult to answer. Where a house is in the picture, the answers around what happens next depend on a number of things.
Regardless of how the property was acquired, a family based in Hawaii would want to know whether a will or trust exists and whether there are other owners or beneficiaries. There are answers that guide any further process. The answer to ownership addresses the probate and administration process for a trust.
That is where legal counsel is very important and families are advised to consult one if none has been appointed by the deceased. In this article, we will explore the various options available to resolve the question of what happens to a house when a parent passes on.
The Question of Who Owned the House?
Dependants and beneficiaries cannot proceed to have a claim on assets left behind by a deceased parent without knowing one thing. Who owned the house in the first place. The law in Hawaii is very clear on the transfer of such property. What is not legally yours cannot be passed to another, whether you are alive or dead. Hence, the ownership structure automatically affects how the property is transferred.
If the deceased parent owned the Hawaii home individually, the property may need to go through probate unless another legal mechanism applies. But if another individual was a part owner with no specific ownership arrangement, the surviving owner receives the deceased owner’s interest outside probate.
Additionally, if the home is held in a revocable living trust, the successor trustee assumes administration of the property. The property does not need to go through the ordinary probate process.
Parent with a Living Trust
There are instances where the parent has a house and none of the family members or potential beneficiaries live there. The deceased may find it appropriate to create a living trust and appoint a successor trustee. The role of the trustee after his or her death may include locating trust assets and following the trust’s instructions.
Thereafter, all the beneficiaries are notified about the trust and its instructions. In addition to managing the home and ensuring the beneficiaries receive their benefits, the successor trustee pays for appropriate expenses.
Where a Will Exists
A will is a wish expressly written by the deceased without external interference or duress, identifying who the deceased parent intended to receive the home. While it doesn’t eliminate the probate process, it gives directions that will still require court administration. Where more than one child benefits from inheriting the home, the court may offer solutions, such as allowing one heir to live in it or sell it and share the proceeds. Besides this easy, mutual path, legal assistance is required when disagreements arise, which can complicate the administration of the will.
How Probate Works
When someone dies without a valid will or trust, the home’s ownership may then be determined under Hawaii’s succession laws. In other words, in Hawaii, the transfer of a deceased person’s property who dies intestate has to go through probate. The involvement of the courts is to ensure the law is followed, so that justice prevails and ownership matters are resolved.
The probate may identify and value the house where liquidation prevails, supervise payment of debts, expenses, and taxes and determine the rightful beneficiaries or heirs of the surplus. Otherwise, the court will then determine the rightful beneficiaries according to the established trust, will or applicable Hawaii law.
Probate can be tiring if you choose to handle it yourself. The court filings and deadlines are alot of work. Hence, for the family and other beneficiaries to be well represented in the process, estate planning attorneys in Honolulu, Hawaii, are very useful in administering the estate or trust of a deceased parent. The advantages of using professional services include guidance on succession requirements, assistance in resolving issues involving inherited property, and preparation of the necessary Hawaii home title transfer documents.