Hawaii Estate Tax Cases
Last updated: 9 Nov 2025 •
Hawaii Estate Tax — Cases & Authorities (Practitioner Notes)
Hawaii’s estate tax sits in HRS Chapter 236E with administrative guidance from the Department of Taxation. Reported appellate opinions squarely on 236E are limited; in practice, filings rely on statute, administrative rules, forms/instructions, and federal conformity. Below are authorities-first notes organized like case briefs to support positions in audits and reviews.
HRS 236E — Framework & Federal Conformity
What it’s about
Establishes the Hawaii taxable estate, conformity touchpoints to the federal taxable estate, and mechanics for residents and nonresidents.
Rule / Practice
Hawaii computes state estate tax from a base derived from the federal system, then applies Hawaii-specific provisions (filing triggers, adjustments, administrative rules).
Practitioner note
Start with statutory text and Department instructions for Form M-6. Use federal schedules for valuation/deductions/QTIP, then reconcile any Hawaii departures. Cross-link workpapers to both filings to streamline examiner review.
Nonresident Situs & Apportionment
What it’s about
Nonresidents are taxed on Hawaii-situs real property and tangible personal property located in the state; most intangibles follow domicile.
Rule / Practice
Tax applies only to the Hawaii fraction. Returns mirror federal schedules, then apply Hawaii situs/apportionment logic to limit liability to Hawaii assets.
Practitioner note
Substance over form: entity wrappers don’t automatically defeat estate tax exposure. Keep evidence of title/possession/location. See Nonresident Guide for filing workflow and examples.
State QTIP & Portability (Practice)
What it’s about
Hawaii marital-deduction planning generally follows federal concepts; estates often rely on QTIP elections and federal portability for survivor protection.
Rule / Practice
QTIP eligibility aligns to federal rules; consistent documentation and election statements on the Hawaii return are critical to sustain deferral.
Practitioner note
Keep QTIP election statements with Hawaii filing; trustee records should show income requirements. Confirm Department procedures for recognizing elections before assuming parity with federal results. For design options, see Hawaii Estate Tax Planning.
Administration Expenses, Claims & Probate Timing
What it’s about
Deductibility of administration expenses/claims depends on supportable valuation, documentation, and probate timing/approvals.
Rule / Practice
The Department expects substantiation consistent with federal rules (orders, invoices, proof of payment) for the Hawaii return.
Practitioner note
Calendar creditor periods and approvals early; if a claim is denied/late, assess impact on the Hawaii base and whether an amended filing is feasible. For dates and mechanics, see Forms & Deadlines.
Valuation & Alternate Valuation Date
What it’s about
Fair market value governs both federal and Hawaii computations; the alternate valuation date (federal) can affect the Hawaii position.
Rule / Practice
Hawaii relies on federal scaffolding; qualified appraisals for island real estate and high-value tangibles are essential.
Practitioner note
Use local appraisers with Hawaii market expertise. Provide complete narratives and comps; reconcile federal vs. Hawaii attachments to avoid mismatch questions. Model effects in the Hawaii estate tax calculator.
References
- Hawaii Revised Statutes — Chapter 236E (Estate & GST): Statute index
- Hawaii Administrative Rules — Title 18-236E (Estate Tax): HAR reference
- Department of Taxation — Estate Tax page (Form M-6 & instructions): Forms library
- IRS Form 706 & Instructions (federal reference): IRS page