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 all more persons, with no (not corporations, spouses, with rights of
others. right of survivorship. partnerships, etc.) with survivorship.
right of survivorship.
Express intention plus
By express act; also by 4 unities of time, title, Express intention,
Creation Any transfer to one failure to express the interest and possession only spouses. Divorce
person.
tenancy. (with statutory automatically results in
tenants in common.
exception).
Possession Total. Equal right of Equal right of Equal right of
possession. possession. possession.
Each co-owner has a One title to the whole
separate legal title to property since each
Title One title to one entity. his undivided interest, tenant is theoretically One title in the marital
will be equal interests deemed owner of whole; unit.
unless expressly made must be equal undivided
unequal. 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
Entire property subject gross estate for federal co-tenants (last one
to probate and included Right of survivorship so
Effect of Death in gross estate for and state death taxes. holds in severalty). no probate. Same death
federal and state death The property passes Entire property included taxes as joint tenancy.
in decedent’s gross
by will to devisees
taxes.
or heirs, who take as estate for federal estate
tenants in common. No tax purposes minus %
survivorship rights. attributable to survivor’s
contribution.
Joint tenant’s interest
also subject to execution
Co-owner’s fractional sale. Joint tenancy is
interest may be sold to Only a creditor of both
Creditor’s Rights Subject to creditor satisfy his creditor who broken and purchaser spouses can execute on
becomes tenant in
claims.
then becomes tenant in common. Creditor gets property.
common.
nothing if debtor dies
before sale.
Presumed Favored in doubtful Not favored so must be Must be expressly
By Law None. cases; presumed to be expressly stated. stated.
equal interests.