Outdated Language in Your Trust Could Cost Your Spouse—Here’s How to Fix It in Hawaiʻi

If you created a living trust more than a few years ago, it’s time to dust it off and take a closer look — especially if you're married and live in Honolulu or anywhere else in Hawaiʻi. Some older estate plans contain language that could make things harder — not easier — for your surviving spouse.

Why Older Trusts Often Required a “Mandatory Split”

Back when the federal estate tax exemption was much lower (as little as $675,000), trusts were often drafted to require a mandatory split of assets when the first spouse died. The purpose? To use up the deceased spouse’s exemption and avoid triggering estate taxes.

But times have changed. The current federal estate tax exemption is far higher (over $13 million in 2025), and most Hawaiʻi families no longer need to worry about this issue. Yet many old trusts still include this outdated structure — causing unnecessary cost, stress, and paperwork for the surviving spouse.

When a Split Still Makes Sense in Hawaiʻi

There are still valid reasons to split a trust in certain circumstances. For example, if:

• You’re in a second marriage

• You have children from a previous relationship

• You want to ensure your spouse can use certain assets during life, but preserve the remainder for your children

In cases like these, a well-planned split can offer peace of mind. But for couples in a first marriage, with shared children and no unique creditor concerns, forcing a split may create complexity with no added benefit.

The Red Flag to Look For in Your Trust

Look for complex legal language like this:

"A pecuniary amount equal to the maximum marital deduction allowable for determining the federal estate tax payable because of the death of the Deceased Spouse…"

If your trust includes similar wording, it may be operating under outdated tax planning assumptions. That could mean costly sub-trusts, added administrative burdens, and unnecessary legal fees — right when your loved ones are grieving.

What Should You Do?

If your trust hasn’t been reviewed in the last few years — or you aren’t sure whether it includes this kind of language — it’s time to meet with an estate planning attorney who understands the unique needs of families in Hawaiʻi.

At my Honolulu-based firm, we help local families simplify and modernize their trusts, so they truly support your spouse and children when it matters most. Estate planning isn’t something you do once and forget. It’s a living process — one that should evolve with your life, your family, and the law.

Let’s Make Sure Your Trust Still Works for You

An outdated trust might look fine on paper, but still cause problems later. Let’s make sure your plan does exactly what you want it to do — for your spouse, your children, and your legacy in Hawaiʻi.

Frequently Asked Questions

Q: Why is a “mandatory split” in a trust no longer necessary for most couples?

Because today’s federal estate tax exemption is much higher than it was in the past, most families in Hawaiʻi no longer need complex tax planning to avoid estate taxes.

Q: What happens if I don’t update my trust?

You could unintentionally burden your spouse with costly legal requirements, even if that wasn’t your original intention.

Q: How do I know if my trust has this outdated language?

Look for complex tax-focused provisions or legal jargon about the “marital deduction” or “pecuniary amount.” Better yet, let a local estate planning attorney review it with you.

Q: Can you help if my trust was created in another state?

Yes, if you now live in Hawaiʻi, it’s especially important to update your plan to reflect local laws and practices.

Ready to Review Your Trust?

If you're in Honolulu or anywhere in Hawaiʻi and you're unsure whether your trust is truly serving your family’s best interests, let’s talk. I’ll help you identify outdated provisions and make updates that reflect today’s laws — and your current wishes.

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This article is brought to you by the Law Office of Keoni Souza, a boutique estate planning firm located in Honolulu, Hawaiʻi, proudly serving families on Oʻahu and across the Hawaiian Islands. At our firm, estate planning is about more than documents—it’s about creating lasting peace of mind for you and the people you love. Through our unique Life & Legacy Planning Process, we guide you to make informed, empowered decisions that protect your wealth, your wishes, and your family’s future. To get started, contact our Honolulu office today to schedule your Family Wealth Planning Session. Mention this article to learn how you can receive this $750 session at no charge.

Disclaimer: The information on this website is for informational purposes only and should not be considered legal advice. For guidance tailored to your specific situation, please consult an estate planning attorney licensed in the State of Hawaiʻi. Use of this website or communication through this site does not create an attorney-client relationship with the Law Office of Keoni Souza, LLC.