Cesspool/septic conversion trigger ?

[Punaperson]

Just looking for some quick feedback if anyone has gone through a similar situation.

I have a will, but several friends have recommended setting up a trust to avoid probate.  My home has a cesspool - legal at the time the permit was finalized.  I know that a sale triggers mandatory conversion to a septic system, but does putting my home/property into a trust also do this?  I'm just trying to get an idea if this is an idea I should pursue , or just leave things as they are and let my heirs deal with whatever the laws are at the time they inherit .

[HiloJulie]

While there are numerous benefits in putting your house into a trust, and trusts are effective for avoiding probate and managing assets, they do not circumvent state environmental regulations regarding wastewater. The trust acts as the seller, and the same laws apply upon beneficiary distribution.

Putting the house into trust in the first place is NOT considered a sale however.

[MyManao]

I have a will, but several friends have recommended setting up a trust to avoid probate..

I use Paul Booth in Hilo for all my trust needs, which because of my particulars are varied, and find him to be well worth the time, and money. I am sure an initial consultation will set you right..

(808) 315-4904
260 Kamehameha Ave Ste 206
Hilo, HI 96720

[Punaperson]

Thanks to both of you for the information. Not having to deal with the expense of having a septic system installed when putting my home into a trust means I will follow up on that process.

[My 2 cents]

"Putting the house into trust in the first place is NOT considered a sale however."

You should double check this information before moving forward. My experience tells me the opposite.

[HiloJulie]

Sorry - deleted my last post due to it being too damned confusing!

Typically, transferring a home to a revocable living trust in Hawaii is generally not considered a sale or transfer of ownership that triggers the requirement to install a septic system or upgrade a cesspool.

When you transfer property into a revocable trust, you are typically acting as the grantor, trustee, and beneficiary, meaning the property is still considered yours for management and legal purposes. 

Further, seeking proper estate planning legal advice is paramount, as always. I did send PunaPerson a recommendation of a good local estate planning law firm.

Best of luck!

[My 2 cents]

An important element of a court case that I was involved with several years ago was that the court viewed the transfer of property into a trust as a change of ownership.  I don't know how it affects the septic requirements, but I still suggest doing a double-check outside of this forum.