Page 11 - Foreign Investor Guide - Hawaii

Common Ways to Hold Title in Hawaii

TENANT IN TENANCY IN JOINT TENANTS BY
SEVERALTY COMMON TENANCY THE ENTIRETY

Property held by 2
Property held by one Property held by 2 or or more individuals Property held by
Definition person, severed from more persons, with no (not corporations, spouses, with rights of
all others. right of survivorship. partnerships, etc.) with survivorship.
right of survivorship.
Express intention plus
Express intention,
By express act; also by 4 unities of time, title,
Any transfer to one only spouses. Divorce
Creation failure to express the interest and possession
person. automatically results in
tenancy. (with statutory
tenants in common.
exception).
Equal right of Equal right of Equal right of
Possession Total.
possession. possession. possession.
Each co-owner has a One title to the whole
separate legal title to property since each
his undivided interest, tenant is theoretically One title in the marital
Title One title to one entity.
will be equal interests deemed owner of unit.
unless expressly made whole; must be equal
unequal. undivided interests.
Each co-owner’s
Conveyance of one co-
interest may be
No restrictions (check owner’s interest breaks
Conveyance for release of marital conveyed separately his tenancy; purchaser Cannot convey without
rights, if any). by its owner; purchaser becomes tenant in consent of spouse.
becomes tenant in
common.
common.
No probate and can’t
Decedent’s fractional be disposed of by will;
interest subject to property automatically
probate and included in belongs to surviving co-
Entire property
gross estate for federal tenants (last one holds Right of survivorship
subject to probate and
and state death taxes. in severalty). Entire so no probate. Same
Effect of Death included in gross estate The property passes property included death taxes as joint
for federal and state
by will to devisees in decedent’s gross tenancy.
death taxes.
or heirs, who take as estate for federal
tenants in common. No estate tax purposes
survivorship rights. minus % attributable to
survivor’s contribution.
Joint tenant’s interest
also subject to
Co-owner’s fractional
execution sale. Joint
interest may be sold to Only a creditor of both
Subject to creditor tenancy is broken and
Creditor’s Rights satisfy his creditor who spouses can execute on
claims. purchaser becomes
then becomes tenant in property.
tenant in common.
common.
Creditor gets nothing if
debtor dies before sale.
Favored in doubtful
Presumed Not favored so must be Must be expressly
None. cases; presumed to be
By Law equal interests. expressly stated. stated.