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THE SENATE |
S.B. NO. |
2216 |
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TWENTY-SIXTH LEGISLATURE, 2012 |
S.D. 1 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
RELATING TO TRANSFER OF PROPERTY.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. Section 509-2, Hawaii Revised Statutes, is amended to read as follows:
"§509-2 Creation of joint tenancy, tenancy by the entirety, and tenancy in common. (a) Land, or any interest therein, or any other type of property or property rights or interests or interest therein, may be conveyed by a person to oneself and another or others as joint tenants, or by a person to oneself and one's spouse or reciprocal beneficiary, or by spouses to themselves, or by reciprocal beneficiaries to themselves, as tenants by the entirety, or by joint tenants to themselves and another or others as joint tenants, or tenants in common to themselves or to themselves and another or others as joint tenants, or by tenants by the entirety to themselves or themselves and another or others as joint tenants or as tenants in common, or by one tenant by the entirety to the tenant's spouse or reciprocal beneficiary of all of the tenant's interest or interests, without the necessity of conveying through a third party, and each such instrument shall be construed as validly creating a joint tenancy, tenancy by the entirety, tenancy in common, or single ownership, as the case may be, if the tenor of the instrument manifestly indicates such intention.
(b) Property that is held in tenancy by the entirety by persons who are spouses or reciprocal beneficiaries may be transferred to a joint revocable living trust, a joint irrevocable living trust, or to the separate revocable or irrevocable trusts of either spouse or reciprocal beneficiary. The transferred property or any part or accumulation of the transferred property that was held in tenancy by the entirety at the time of transfer shall continue to be treated as though it is held in tenancy by the entirety and shall be subject to all applicable law while held in trust during the lifetime of both spouses or reciprocal beneficiaries except where the provisions of the trust instrument expressly provide to the contrary. In all respects other than the type of ownership, the property shall be subject to the terms of the trust instrument.
In any action by a creditor of either or both spouses or reciprocal beneficiaries to recover a debt from a trust subject to this subsection, the sole remedy available upon avoidance of the transfer with respect to trust property treated as though it is held in tenancy by the entirety shall be an order directing the trustee to transfer the relevant property to both spouses or reciprocal beneficiaries as tenants by the entirety.
[(b)] (c) For the purposes of
this chapter:
"Reciprocal beneficiary" means an adult who is a party to a registered reciprocal beneficiary relationship in accordance with chapter 572C, and has a valid certificate of reciprocal beneficiary relationship that has not been terminated."
SECTION 2. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 3. This Act shall take effect upon its approval.
Report Title:
Conveyance of Property
Description:
Specifies that property held in tenancy by the entirety shall continue to be treated as such after transfer to a specified trust except where specifically provided otherwise by the trust instrument; limits the remedy available to creditors against transferred property. (SD1)
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.