What Happens When an Estate Is Insolvent in Hawaii?
When an estate owes more than it holds, Hawaii pays the claims in 7Haw. Rev. Stat. § 560:3-805Verified Sep 23, 2026View source classes in statutory order, beginning with costs and expenses of administration.
An estate is insolvent when the claims against it exceed the assets available to pay them. Hawaii then pays the claims in 7Haw. Rev. Stat. § 560:3-805Verified Sep 23, 2026View source classes, in the order its statute sets; the classes at the end of the order are the ones left unpaid when the money runs out.
1. Costs and expenses of administration; 2. Reasonable funeral expenses (including DHS claims per § 346-15); 3. Debts and taxes with preference under federal law; 4. Reasonable and necessary medical/hospital expenses of last illness (including compensation of attendants and DHS last-illness claims per § 346-37); 5. Debts and taxes with preference under state law; 6. Any other claim against the estate under § 346-37 (DHS); 7. All other claimsHaw. Rev. Stat. § 560:3-805Verified Sep 23, 2026View source.
Hawaii pays them in proportion to their amountsHaw. Rev. Stat. § 560:3-805(b)Verified Sep 23, 2026View source: each claim in the class receives the same share of what it is owed.
A personal representative is not personally liable for the decedent's debtsHRS § 560:3-808(a)-(c)Verified Sep 23, 2026View source. A personal representative who pays a later class before an earlier class is paid in full is personally liableHRS § 560:3-807(b)(2)Verified Sep 23, 2026View source. A personal representative who distributes property to heirs while claims are unpaid is personally liableHRS § 560:3-807(a), (b)(1); HRS § 560:3-703(b); HRS § 560:3-909; HRS § 560:3-1003(a)(2); HRS § 560:3-1004; HRS § 560:3-1006Verified Sep 23, 2026View source.
Yes. A person named in a will who has not yet been appointed can decline the appointment, and an insolvent estate is a common reason to. In Hawaii, the way to decline is a written renunciation filed with the courtHRS § 560:3-203(c)Verified Sep 23, 2026View source. The Renunciation of Executor for Hawaii prepares the writing or the state's official form.
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Learn moreForms for Settling an Estate in Hawaii
Free forms for settling an estate in Hawaii: probate petition, small estate affidavit, creditor notice and closing forms. Prepare each form for Hawaii.
Petition for Probate and Letters
In Hawaii, the petition asks the Circuit Court to appoint the personal representative, whose authority is proved by Letters Testamentary or Letters of Administration; an informal (registrar) track is availableHRS § 560:3-301Verified Sep 8, 2026View source.
Notice to Creditors
In Hawaii, creditors have 4 monthsHRS § 560:3-803(a)(1)(A)Verified Sep 8, 2026View source from first publication to present claims.
Renunciation of Executor
In Hawaii, a person named as personal representative may renounce the right to serveHRS § 560:3-203(c)Verified Sep 23, 2026View source before anyone is appointed.
Small Estate Affidavit
In Hawaii, the Affidavit for Collection of Personal PropertyHRS § 560:3-1201Verified Sep 8, 2026View source covers estates valued at $100,000HRS § 560:3-1201Verified Sep 8, 2026View source or less, presented directly to the bank or other holder, not filed with a court.
Estate Inventory
In Hawaii, the personal representative files the estate inventory within 90 daysHRS § 560:3-706Verified Sep 15, 2026View source of appointment.
Estate Closing
In Hawaii, the personal representative is discharged automatically once the statutory period runsHRS §§ 560:3-1003(b), 560:3-1005Verified Sep 15, 2026View source, and a final accounting is required.
Tools for Settling an Estate in Hawaii
Free tools for settling an estate in Hawaii: whether probate is needed, executor and trustee pay, creditor deadlines and taxes. Run each tool for Hawaii.
How Much Can an Executor Charge?
Hawaii pays executors reasonable compensationHRS § 560:3-719 (reasonable compensation; no statutory percentage; the § 607-18 percentage schedule applies to trustees, not personal representatives)Verified Sep 8, 2026View source, typically 2.2%Estimated from the 16 state statutes that set an executor fee schedule (median and interquartile range at this estate value)Verified Sep 8, 2026View source to 3.8%Estimated from the 16 state statutes that set an executor fee schedule (median and interquartile range at this estate value)Verified Sep 8, 2026View source of the estate.
Can I Self-File Probate?
In Hawaii, informal probate is availableHRS § 560:3-301Verified Sep 8, 2026View source, and a self-represented executor can usually handle it for a simple, uncontested estate.
How Do I Get Letters Testamentary?
In Hawaii, the Registrar issues Letters Testamentary or Letters of Administration once the Circuit Court appoints the personal representative; an informal (registrar) track is availableHRS § 560:3-301Verified Sep 8, 2026View source.
What Are the Creditor Claim Deadlines?
In Hawaii, creditors have 4 monthsHRS § 560:3-803(a)(1)(A)Verified Sep 8, 2026View source from first publication of the creditor notice to present claims; late claims are barred.
How Do I Claim a Deceased Person's Unclaimed Property?
In Hawaii, a deceased owner's unclaimed property is claimed from the Hawaii Department of Budget and Finance, Unclaimed Property ProgramHaw. Rev. Stat. Chapter 523A (Uniform Unclaimed Property Act), 523A-19(c); heir affidavit under Haw. Rev. Stat. 560:3-1201, 560:3-1202Verified Aug 24, 2026View source.
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