October 1, 2023     Planning

Inheriting a Home in Hawaii – What Comes Next?

Inheriting a home in Hawaii can be overwhelming. It’s also a fact that many local homeowners understand passing a property through generations. Understanding the basics will help you and your family understand your options and make the best decision possible when the time comes. For nearly 30 years, Homeworks Construction has worked building and renovating homes in Hawaii. They have helped many local families understand their options when it comes to understanding the issues around construction on an inherited home. The tips below cover topics that they share with their clients. 

Assess the Current Condition

“Kupuna are often unable to keep up with regular maintenance, so deferred maintenance can mean bigger issues,” said Marshall Hickox, President of Homeworks Hawaii. From retaining wall repairs to termite damage, deferred maintenance can mean expensive repairs. The company highly recommends a thorough home inspection before making any decisions. Before you move in, decide to renovate, or even rent the property, get an inspection done. 

Sole inheritance vs. Shared Inheritance

Finding consensus among family members about how the property will be used, and the roles and responsibilities of each family member can be difficult. You may need to seek legal advice, discuss usage and occupancy, and even determine how financial responsibilities will be shared. One family member should be appointed for maintenance, repairs, and managing the home. Discuss exit strategies should a family member want to withdraw from ownership and seek legal and financial advice for long-term planning, or trusts. Establishing an ownership structure or LLC is also a possibility to cover. 

Short-term and Long-term Goals for the Property

Depending on the condition of the property you may need renovations. Determine if you plan to live in, rent, or sell the home. Select durable and high-quality materials that will last, but style is determined by your goals. “If you plan to rent the property, it’s important that the style not prevent potential renters from seeing themselves in the space,” said Hickox.   

Renovation vs. Rebuilding

“We provide potential clients with an assessment of the structural integrity, electrical, plumbing, and overall condition of the home before anything begins,” said Hickox. “Our process to determine whether to renovate or build new depends on multiple factors and our project team communicates with the owners to complete a comprehensive evaluation that satisfies their goals and budget,” Hickox continued.  

Preserving Memories

Whether it is the exposed beams in the original plantation home or the trees in the backyard, make a list of any features that you’d like to preserve. Retaining some elements from the original home through the construction process may be important to you.

Living outside of Hawai‘i

Living outside the state means managing affairs remotely and traversing local laws. Homeworks Construction serves their remote clients by conducting Zoom walkthroughs and using a project management dashboard to provide progress updates. “Between our design staff supporting selections and our 3-D rendering software and project management system, we can easily manage remotely,” said Hickox.

Expenses & Budget

Understand your expenses and establish a budget. Consider property taxes, insurance, maintenance, as well as any outstanding mortgage payments. These expenses will impact your choices.  

Inheriting a home can be complicated, but starting with the right questions helps. Homeworks Construction works to understand your goals, guide you toward the right investments, and provide you peace of mind no matter how you choose to manage your property. Their design/build team approaches every project with aloha and understanding. 

Call Homeworks Construction and find out more 808-955-2777 or email us.

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