If I'm buying a single-family home, in Maui, Hawaii to use as my residence but will have the title under my living trust instead of my name can I still get the lower conveyance tax rates?
Yes, you can. The reduced conveyance tax rates are applicable when purchasing a single-family home or condo if you qualify for a county real property tax homeowner's exemption. According to Maui County ordinances, you may be eligible for the homeowner's exemption even if the property is under your living trust. The ordinances state that trustees can receive the exemption if either the settlor of the trust lives in the property as their home or if the settlor passes away and a beneficiary entitled to reside in the home as per the trust document makes it their main residence.
I plan to buy a unit in Maui, Hawaii, and might use it as my residence but due to liability concerns I will hold title in my Limited Liability Company (LLC). Can I still qualify for the conveyance tax rates?
NO. The higher conveyance tax rates apply to the transfer unless you qualify for a county homeowner's exemption. Only individuals and trustees of certain trusts may qualify for the county home exemption. Corporations, co-partnerships, and companies are specifically excluded from the county homeowner's exemption.
My spouse and I are buying a condo to live in as our residence. We plan to hold the title in our shared trust and hope to benefit from the law that provides creditor protection for the trust under tenancy by the entirety. We've been told that we'll have to document two deeds; a deed for ourselves as individuals as tenants by the entirety and secondly a deed from us to our trust. Will we be charged conveyance taxes for both transfers?
NO. Conveyance taxes are only required upon registration of the deed that places you and your spouse on the title individually. The second transfer should not incur conveyance taxes as it is a transfer to your living trust.
I'm currently working on establishing an estate plan with my lawyer. Meanwhile, I'm filing a quitclaim deed for a timeshare interest I own to my nephew, which will take effect upon my passing in accordance with the Hawaii law allowing transfers. Will I have to complete a Conveyance Tax Certificate and pay conveyance taxes to the Bureau of Conveyances when registering that deed?
NO. The State of Hawaii does not impose conveyance taxes or necessitate a Conveyance Tax Certificate for "documents that adhere to the transfer on death deed as permitted under chapter 527 HRS."
For more additional information on the Maui Tax Conveyance, click here.