What is a non-judicial settlement agreement?
A non-judicial settlement agreement is a legally binding contract between two parties regarding the distribution of an estate, or inheritance, in Hawaii. This type of agreement is used when heirs and/or beneficiaries of an estate come to an agreement on how to divide the estate without going to court. To be valid, a non-judicial settlement agreement must include the names of the heirs and beneficiaries, the name of the estate, the date of execution, an inventory of the estate assets, a statement of the equitable distribution of property, and the signatures of all parties involved. An executor or other representative of the estate may sign the agreement as well. Once signed, the agreement is binding and enforceable by law. The exact contents of an agreement may vary depending on the unique circumstances of the estate. For instance, a non-judicial settlement agreement may state that certain assets are to be sold and the proceeds distributed, or that a piece of property is to be passed from one heir to another. It is important, however, that all parties agree to the terms of the agreement in order for it to be legally binding. It is also important to note that a non-judicial settlement agreement is not the same as a will or contract of inheritance. Instead, it is a contract made between heirs and/or beneficiaries in order to resolve disagreements without having to go to court. A non-judicial settlement agreement is typically used in cases of intestacy, or when a decedent dies without leaving a valid will.
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