Comparing Revocable Trusts in Hawaii Versus Nevada
Compare the pros of setting up revocable trusts in Hawaii versus Nevada, including how they each work in the real world.
Both Hawaii and Nevada let you use a revocable living trust to keep control during life and pass assets outside probate. That core benefit is the same. You retitle assets to the trust, and your successor trustee distributes them without court proceedings.
Overall, both states deliver probate avoidance and privacy. Nevada stands out for having no state estate or inheritance tax, while Hawaii has no inheritance tax but overlays a separate estate tax that can matter for larger estates.
Hawaii’s trust rules track the Uniform Trust Code (UTC). You’ll find a dedicated “Revocable Trusts” part and clear rules on creating, revoking, and administering trusts. Nevada’s framework lives in NRS Chapters 163 and 164, which add features like modern decanting and flexible administrative rules.
The biggest difference comes in taxes. Nevada has no state estate or inheritance tax, and there hasn’t been a filing requirement since 2005. Hawaii, by contrast, imposes a stand-alone estate tax. That tax can apply to larger estates, with an exclusion fixed to the old federal 2017 level. Meaning some estates that owe nothing federally can still trigger Hawaii estate tax.
Revocable Trusts in Hawaii and Nevada, in the Real World
Real estate in both states. A Honolulu homeowner with appreciating property may cross Hawaii’s threshold. Meanwhile, a similarly sized estate in Reno faces no state-level estate or inheritance tax at all.
Real estate follows the law of the state where it sits. Without planning, that can mean a second (ancillary) probate for out-of-state property. Funding that property into a revocable trust is a common way to sidestep the extra court file.
Community property versus common-law rules. Nevada is a community-property state. Hawaii is not. For married couples, that difference can affect how new assets are titled, how gains are characterized, and how step-ups in basis might be analyzed inside a trust plan. If you split time or property between the two states, coordination is key.
Administration flexibility (often a Nevada selling point). Nevada law is known for flexible administration. (Think directed trustees, decanting options, and long perpetuity periods for irrevocable trusts.) Those features matter most for advanced planning. For revocable trusts, the practical advantages show up in administration options and professional trustee marketplace depth rather than in day-to-day tax savings.