What is an upgrade/downgrade provision?
An upgrade/downgrade provision is a part of inheritance law in Hawaii that relates to how property passes in the event of a person’s death. It allows certain property to be exchanged for the same value of a different type of property in the same estate. In other words, if a person who dies has specific property that is worth a certain amount of money, the upgrade/downgrade provision allows for that property to be exchanged for a different type of property of equivalent value. For example, a person who dies and has stocks in their estate could use the upgrade/downgrade provision to exchange those stocks for bonds that are of equal value. In order for this to occur, the executor of the estate must complete a legal application that outlines the details of the exchange. Additionally, the executor may need to provide an evaluation of the two types of property to ensure that a fair exchange is taking place. The upgrade/downgrade provision is particularly useful when a person in Hawaii has real estate or property and wishes for it to be passed onto their heirs in a different form. It allows for the estate to be passed down in a form that may be more useful for the heirs depending on their circumstances. In any case, the upgrade/downgrade provision is an important part of inheritance law in Hawaii and helps to ensure that the wishes of the person who has passed away are respected.
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