Hawaii Form P-64B: Conveyance Tax Exemption for Inherited Property

When an executor transfers Hawaii real property to heirs or beneficiaries after a death, there is a tax most people do not know to look for: the Hawaii conveyance tax. It applies to real property transfers and is ordinarily due at closing. But for estate transfers to heirs, there is an exemption — and claiming it requires submitting the right form.

That form is Form P-64B.

What Is the Hawaii Conveyance Tax?

Hawaii imposes a conveyance tax on every instrument conveying real property — deeds, assignments of leases, easements, and similar documents. The tax is assessed on the consideration (the price or value transferred) and must be paid when the document is recorded at the Bureau of Conveyances.

For a market-rate sale, the conveyance tax is straightforward: the buyer and seller handle it through escrow. But estate transfers to heirs are not market-rate sales. The beneficiary is not buying the property; they are receiving it as an inheritance. Hawaii provides an exemption for this situation — but it is not automatic. The executor must affirmatively claim it by filing Form P-64B.

What Form P-64B Does

Form P-64B is the "Exemption from Conveyance Tax" form. It declares the basis for claiming that a particular property transfer is exempt from Hawaii's conveyance tax. For estate and inheritance transfers, the applicable exemption is typically the one covering transfers made to confirm or complete a title where no additional consideration passes beyond the inheritance.

When the executor records a deed or other conveyance instrument at the Bureau of Conveyances, Form P-64B is filed simultaneously. Without this form, the Bureau will not record the conveyance document — or it will assess conveyance tax that should not be owed. Either outcome creates delays and costs the estate money it should not have paid.

Who Needs to File P-64B

Form P-64B is required any time a Hawaii real property transfer is claimed as exempt from conveyance tax. In the estate context, this typically applies when:

• The executor records a deed transferring real property from the estate to a named beneficiary under a will
• A surviving joint tenant records an affidavit confirming their ownership after the other joint tenant's death
• A trustee transfers property out of a revocable living trust to a trust beneficiary after the settlor's death
• A surviving spouse receives the family home as part of the estate distribution

In each case, the transfer is not a taxable sale — it is a legal redistribution of ownership following a death. Form P-64B is how you tell the Bureau of Conveyances that.

Regular System vs. Land Court: Where P-64B Gets Filed

Hawaii operates two concurrent recording systems, and this distinction matters for how and where you file.

Regular System (Bureau of Conveyances): Property recorded in the Regular System carries a stamp reading "Bureau of Conveyances." For Regular System transfers, the deed (or other conveyance instrument) and Form P-64B are both submitted to the Bureau of Conveyances in Honolulu. The recording fee for a document up to 50 pages is $41.00.

Land Court (Office of the Assistant Registrar): Property registered in the Land Court Torrens system carries a stamp reading "Office of the Assistant Registrar." Land Court property uses a separate process — a petition to the Land Court to note the death and issue a new Certificate of Title. Form P-64B still accompanies conveyance instruments affecting Land Court property, but the filing goes through the Land Court process rather than the standard Bureau of Conveyances window. The recording fee for Land Court documents is $36.00.

If you are unsure which system your property is in, check the existing deed. The system is identified by the stamp or registration notation on the document. This step is critical: filing in the wrong system does not just delay the transfer — for Land Court property, it can render the transfer void.

How to Determine the Applicable Exemption

Form P-64B lists several categories of exemptions. For estate and inheritance transfers, the relevant category is generally the one covering transfers where the consideration is zero or nominal because the transfer is made to carry out a legal inheritance. The executor marks the appropriate box on the form and provides a brief explanation of the basis for the exemption.

If the Department of Taxation flags the exemption claim for review, they may require documentation — typically a copy of the will, the letters testamentary, and evidence that the transfer is being made to a named beneficiary or legal heir. Keeping these documents organized before filing saves time if a review occurs.

The M-6A Release and Conveyance: Two Separate Requirements

One confusion that often derails estate property transfers: the Form P-64B conveyance tax exemption and the Form M-6A estate tax release are two separate documents with different purposes.

Form P-64B addresses the conveyance tax — the tax on the act of transferring property.

Form M-6A (Request for Release) is a sworn statement filed with the Hawaii Department of Taxation declaring that no estate taxes are due, or that any estate taxes owed have been paid. The DOTAX issues a release that clears the automatic state estate tax lien from the real property.

Title insurance companies require the M-6A release before they will underwrite any sale or refinancing of inherited Hawaii real estate — regardless of whether the estate owes any estate tax. Even if the estate is well below the $5,490,000 exemption threshold, the executor still needs to file M-6A to obtain the lien release.

The sequence matters: the executor typically files M-6A first (or simultaneously with the estate tax return if one is required), obtains the release from DOTAX, and then records the transfer deed with the Bureau of Conveyances along with Form P-64B.

Common Mistakes with Form P-64B

Skipping P-64B entirely. Some executors assume that because the transfer is clearly an inheritance — not a sale — no tax forms are needed. The Bureau of Conveyances does not share that assumption. The form is required.

Filing P-64B in the wrong system. A P-64B attached to a deed filed in the Regular System does nothing for a property actually registered in Land Court. Identify the system before you prepare any filing.

Confusing P-64B with P-64A. Form P-64A is the conveyance tax return — filed when a taxable conveyance occurs and tax is owed. Form P-64B is the exemption claim. Estate transfers use P-64B.

Neglecting the M-6A before attempting to convey. If a title company is involved — as it typically is when the beneficiary wants to sell or refinance the inherited property — they will require the M-6A release before completing any transaction. Submitting P-64B without first obtaining M-6A clearance will stall the closing.

Practical Filing Checklist for Estate Property Transfers

Before recording any estate property transfer at the Bureau of Conveyances:

1. Identify whether the property is Regular System or Land Court
2. Obtain certified letters testamentary (or equivalent authority to act as executor)
3. File Form M-6 or confirm an M-6A filing is ready — obtain the estate tax lien release from DOTAX
4. Prepare the transfer deed (or Land Court petition)
5. Complete Form P-64B, marking the applicable exemption category
6. Submit the deed and P-64B together to the appropriate Bureau of Conveyances office, along with the recording fee ($41 Regular System, $36 Land Court)

For inter-island properties — Maui, Hawaii Island, Kauai — remember that the Bureau of Conveyances is located in Honolulu on Oahu. All recording must physically reach that office. Factor in courier or mail time for original documents.

If you are working through the full estate administration process in Hawaii — including all DOTAX filings, property transfers, and tax clearances — the Hawaii Final Tax & Estate Tax Guide provides a sequenced, step-by-step walkthrough of every form and deadline involved.

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