The minor child reaches age 21 for custodial transfers made by irrevocable lifetime gift, will, or trust, or exercise of power of appointment.Hawaii has a state income tax, structured as a progressive tax on income.
Tax rates range from 1.4% - 11%.
Hawaii does not impose an inheritance tax.
Hawaii imposes an estate tax.
The exemption amount for residents is $5.49 million in 2026. For non-residents, the exemption amount is multiplied by a factor equal to the value of the property located in Hawaii divided by the federal gross estate.
The tax rates range from 10% of the net taxable estate for estates of $1 million or less to $1,385,000 plus 20% of the excess over $10 million.
Hawaii imposes a GST tax on transfers involving property located in the state as well as transfers from a resident trust.
Hawaii does not impose a gift tax.
The minimum age of a person competent to make a will is 18.
The number of witnesses necessary to execute a will is two.
The original custodial gift may be a life insurance policy or annuity contract.
Custodial property may be invested in or used to pay premiums on (1) a policy on the minor's life if the minor's estate is the sole beneficiary, or (2) a policy on a third party in whom the minor has an insurable interest, if the minor or the custodian is the irrevocable beneficiary.
The custodial arrangement terminates when:
The minor child reaches age 21 for custodial transfers made by irrevocable lifetime gift, will, or trust, or exercise of power of appointment.
The minor child reaches age 18 in regard to other custodial transfers.
The minor child dies.
For important general information about the following material, click here.
Each state describes its own distribution pattern of how property passes to a decedent's spouse, children, parents and siblings. If no such individuals are living, state laws specify other takers among more distant ancestors before awarding property to the state through "escheat" provisions. We do not trace devolution of property beyond those noted above, but cite appropriate statutes for those interested in additional detail.
Many states refer to their distribution regime by simply stating that the heirs of predeceased individuals take "by representation." We use only the statutory verbiage, but may cite other statutory guidance when it exists.
States vary in the way they refer to descendants, using such terms as "issue" or simply children or grandchildren. We use the term "descendant," unless usage of different term adds clarity.
Some states address situations where misconduct or abuse causes forfeiture of a right to receive a share of the estate. Those interested in this information should see the state statutes.
The estate goes to the surviving spouse or reciprocal beneficiary (RB), as follows:
If there are no surviving descendants or parents—100% of the estate
If all surviving descendants are also related to the spouse or RB and there is no other descendant of the spouse or RB who survives the decedent—100% of the estate
If one or both parents survive but there are no surviving descendants—$200,000 plus 75% of the remaining estate
If the surviving spouse or RB has descendants other than those also related to the decedent—$150,000 plus 50% of the remaining estate
If there are surviving descendants, at least one of whom is not directly related to the surviving spouse or RB—$100,000 plus 50% of the remaining estate
If there is no surviving spouse or RB, or if a portion of the estate does not go to the spouse or RB:
100% (or applicable portion) of the estate goes to descendants, by representation (see HRS §560:2‐106)
If there is no surviving spouse/RB or descendant:
100% to surviving parent or parents equally
If there is no surviving spouse/RB, descendant, or parent:
100% of the estate goes to descendants of parents, by representation (see HRS §560:2‐106)
If none of the above:
Intestacy laws outline further distribution steps to the level of grandparents and their descendants. See Haw. Rev. Stat. §560:2‐103(4).
If no legally described recipient can be found, estate assets go to the state of Hawaii.
Click here for more information on intestacy.
Non-qualified Annuities: Exempt from creditors of the owner if payable to a spouse, child, parent or other dependent.
Life Insurance Cash Value: Exempt from creditors of the insured/owner if the beneficiary is the insured’s spouse, child, parent or a dependent.
Life Insurance Proceeds: Exempt from creditors of the insured/owner if the beneficiary is the insured’s spouse, child, parent or a dependent.
Digital Assets: Hawaii follows the Uniform Fiduciary Access to Digital Assets Act to ensure that testators can retain control of their digital property and plan for its ultimate disposition.
Copyright © 2026, Endowment Development Services, a PGI Partners Company, 921 East 86th Street, Suite 100, Indianapolis, Indiana 46240. All rights reserved.
This service is designed to provide accurate and authoritative information in regard to the subject matter covered. It is provided with the understanding that neither the publisher nor any distributor is engaged in rendering legal, accounting, tax, investment, or other professional advice. If legal advice or other expert assistance is required, the services of a competent professional should be sought.
While the publisher has been diligent in attempting to provide accurate information, the accuracy of the information cannot be guaranteed. Laws and regulations change frequently, and are subject to differing legal interpretations. Accordingly, neither the publisher nor any distributor of this service shall be liable for any loss or damage caused or alleged to have been caused by the use or reliance upon this service.