Hawaii Real Property Ownership Breakdown (Simplified)

Written By Annette K

Hawaii residents, here is a simplified breakdown of the different ownership types:

1. Ownership for One Person

  • Tenancy in Severalty: This is simple, sole ownership by one person or entity. If the owner dies, the property must typically go through probate court to be transferred to heirs.

2. Ownership for Multiple People

  • Tenancy in Common: Two or more people (or companies/trusts) own specific shares of a property.

    • Shares: Can be equal (50/50) or unequal (e.g., 20/80).

    • At Death: There is no right of survivorship. Each person's share passes to their own heirs (usually through probate) rather than to the other owners.

    • Creditors: A creditor can go after an owner’s specific share to pay off a debt.

  • Joint Tenancy (JTWROS): Two or more "natural persons" (not corporations or trusts) own equal shares.

    • Right of Survivorship: When one owner dies, their interest passes automatically to the surviving owners without going through probate.

    • Creditors: Creditors can generally still access a joint tenant's interest to satisfy debts.

3. Special Ownership for Couples

  • Tenancy by the Entirety (TBE): This is exclusive to married couples, civil union partners, and reciprocal beneficiaries.

    • Strong Protection: Unlike other types, a creditor cannot take the property to pay the debt of only onespouse. Only debts both spouses owe together can affect the property.

    • No Probate: Upon the first death, the property transfers automatically to the survivor.

    • Unilateral Action: Neither person can sell or transfer their interest without the other's consent.

4. Holding Property in a Trust

  • Living Trust: Many people choose to put their property into a trust to avoid probate entirely, even after both owners have passed away.

  • Hawaii's Hybrid Protection: In Hawaii, married couples can transfer their property into their trusts (as tenants in common) and still keep the strong "Tenancy by the Entirety" creditor protections, as long as they follow specific legal requirements.

Happy Life Legal can help your family prepare your estate plan while keeping in mind your property ownership type. We happily create estate plans of folks all over the Hawaiian islands.

Annette K
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