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INSTRUCTIONS STATE OF HAWAII - DEPARTMENT OF TAXATION
FORM M-6
(REV. 2023) INSTRUCTIONS FOR FORM M-6
HAWAII ESTATE TAX RETURN
(NOTE: References to “married” and “spouse” are also references to “in a civil union” and “civil union partner,” respectively.)
Changes You Should Note other jurisdiction, and can be documented. However, registered
Act 56, Session Laws of Hawaii 2023, conforms the Hawaii Es- domestic partnerships, civil unions, or other similar formal relation-
tate and Generation-Skipping Transfer Tax Law to the Internal Rev- ships that are not marriages under state law are not considered
enue Code (IRC) as amended as of December 31, 2022 with the marriages for federal tax purposes. Since the federal government
exception of the excludable amount of $5,490,000. The exclusion does not recognize partners in civil unions as married individuals for
amount of $5,490,000 is set forth for the decedent in chapter 11 of federal income tax purposes, partners in civil unions will continue
the IRC as amended as of December 21, 2017, as if the decedent to file as unmarried individuals on their federal estate tax returns.
died on December 31, 2017. For the 2023 tax year, the federal
excludable base amount is set at $12,920,000, causing a “Gap” The IRC provisions referred to in Hawaii’s Estate and Genera-
between the federal and state excludable amount. tion-Skipping Transfer Tax Law that apply to a taxpayer and spouse,
spouses, or person in a legal marital relationship, including same-
Although Hawaii does not have a gift tax, the applicable exclu- sex marriages, shall apply to partners in a civil union with the same
sion amount is reduced by the federal adjusted taxable gift(s) made force and effect as if they were “husband and wife,” “spouses,” or
by the decedent. other terms that describe persons in a legal marital relationship.
Accordingly, references to “married” and “spouse” are also refer-
If you are not required to file federal Form 706, but are required ences to “in a civil union” and “civil union partner,” respectively. For
to file Hawaii Form M-6, Hawaii Estate Tax Return, due to the ex- Hawaii estate tax purposes, civil union couples have the same tax
cludable gap between the federal and state, you should complete filing options as married couples.
a “Computed-Hawaii only” Form 706 to arrive at the Hawaii taxable
estate amount. See Special Instructions - For Estates Required to For estate tax purposes, marital status is determined as of the
File a Hawaii Return but not a Federal Return. date of death of the decedent. Partners in civil unions should be
aware that while the Internal Revenue Service will not permit the
General Instructions marital deduction for federal estate tax purposes, estates subject
to the Hawaii estate tax may take the deduction up to the maximum
Purpose of Form — Hawaii does not have a gift tax or an inheri- amount allowed.
tance tax, but it does have an estate tax for estates of decedents
dying after January 25, 2012. For persons dying after January 25, Portability of the Deceased Spousal Unused Exclusion (DSUE)
2012, the Hawaii Estate and Generation-Skipping Transfer Tax is — The federal Tax Relief Act of 2010 introduced portability of the
imposed on the transfer of the taxable estate of every resident and DSUE amount into the estate tax system. Portability provides that
the taxable estate located in Hawaii of every nonresident. any unused basic exclusion amount that remains at the death of
the first spouse (called the “deceased spousal unused exclusion
The federal Estate Tax Return (Form 706 or Form 706-NA), and amount”) may be used by the surviving spouse, in addition to the
its related instructions must be used to determine the Hawaii tax- surviving spouse’s own exemption. If the surviving spouse has had
able estate. more than one predeceased spouse, the DSUE is limited to (a)
Generation-skipping transfers due to taxable distributions or the lesser of $5,490,000 or (b) the unused exclusion of the last
taxable terminations made after June 30, 1994 and before January predeceased spouse. Portability can only be elected on a timely
1, 2005 or on or after May 1, 2010 are reported using the Hawaii filed estate tax return of the predeceased spouse whose exemp -
Generation-Skipping Transfer Tax Report, Form M-6GS. tion is intended to be used, regardless of whether the estate of the
predeceased spouse is otherwise required to file a tax return. To
Which Estates Must File — If the decedent was a resident of Ha- claim the predeceased spouse’s exclusion amount for the surviving
waii or a nonresident of Hawaii, but a U.S. resident or U.S. citi- spouse, the personal representative of the predeceased spouse
zen, and the taxable estate (federal Form 706, Part 2, line 5) is will need to file a Hawaii estate tax return even if the predeceased
$5,490,000 or less, no estate tax return is required. However, the spouse’s estate is not taxable.
estate of a decedent with a surviving spouse must timely file a re-
turn. File this return to elect portability of the deceased spousal Portability applies only to decedents who pass away after Janu-
unused exclusion (DSUE) amount, to the surviving spouse. ary 25, 2012 who were U.S. residents or U.S. citizens, and who
were validly married on the date of death or in a Hawaii civil union
If the decedent was a nonresident not citizen and the taxable or the equivalent. Portability does not apply to decedents who were
estate (federal Form 706-NA, Part II, line 3) is $60,000 or less, no nonresidents not citizens except where allowed by any applicable
return is required. treaty obligation of the United States. If applicable, attach a state-
However, the personal representative or person(s) in posses- ment to the return that refers to the particular treaty applicable to
sion, control, or custody of the property must file a Request for Re- the estate and for which the estate is claiming its benefits. The
lease (Form M-6A) with the Department of Taxation (Department) DSUE amount cannot exceed $5,490,000 or the amount of the un-
if they wish to obtain a release, which indicates that the personal used basic exclusion amount, whichever is less.
representative or person(s) in possession, control, or custody are See Special Instructions Only if Filing a Hawaii Return to Claim
free from taxes under chapter 236E, HRS. Portability.
Same Sex Marriages — Same-sex marriages are recognized in Who Must File — Form M-6 must be filed by the personal rep-
Hawaii. Hawaii’s law recognizes marriages between individuals of resentative of the decedent’s estate. A “personal representative”
the same-sex, and extends to such same-sex couples the same means the personal representative of a decedent appointed under
rights, benefits, protections, and responsibilities of marriage that chapter 560, HRS, and includes an executor as defined under sec-
opposite-sex couples receive. tion 2203 of the IRC, administrator, successor personal representa-
Civil Union — Civil unions are recognized in Hawaii. Civil unions tive, special administrator, and persons who perform substantially
entered into in a jurisdiction other than Hawaii are also recognized, the same function under the law governing their status.
provided that the relationship meets Hawaii’s eligibility require- When to File — Form M-6 is due nine months after the date of the
ments, has been entered into in accordance with the laws of the decedent’s death. An extension to file Form M-6 is based on the
