Property Ownership

What is 'trust ownership' of Hawaii real estate and what are its advantages?

AA. A form of ownership that eliminates all property taxes
BB. Holding real property in a revocable living trust or other trust structure; advantages include avoiding probate, maintaining privacy, and simplified asset transfer upon death✓ Correct
CC. A form of ownership available only to Native Hawaiians under the Hawaiian Homes Act
DD. Trust ownership is prohibited for residential property in Hawaii

Explanation

Holding Hawaii real estate in a revocable living trust (or other appropriate trust) provides several benefits: avoiding probate (public and potentially expensive), seamless transfer of assets upon death, maintained privacy (trusts may not be public record), and potential continuity of management. Professional trustee advice is recommended for complex situations.

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