HRS § 236D-11 — Sale of property to pay tax; creation of lien


§236D-11 Sale of property to pay tax;
creation of lien. (a) Subject to chapter 560 and section 531-29, as
applicable, a personal representative may sell so much of any property as is
necessary to pay the estate taxes due under this chapter. A personal
representative may sell so much of any property specifically bequeathed or
devised as is necessary to pay the proportionate amount of the taxes due on the
transfer of the property and the fees and expenses of the sale, unless the
legatee or devisee thereof pays the personal representative the proportionate amount
of the taxes due.
(b) Unless any estate tax due is sooner paid
in full, it shall be a lien upon the gross estate of the decedent for a period
of ten years from the date of death, except that such part of the gross estate
as is used for the payment of charges against the estate and expenses of its
administration, allowed by any court having jurisdiction thereof, shall be
divested of the lien. Liens created under this subsection shall be qualified
as follows:
(1) The limitation period, as described in this
subsection, in each case shall be extended for a period of time equal to the
period of pendency of litigation of questions affecting the determination of
the amount of tax due; provided a lis pendens has been filed with the bureau of
conveyances or land court in the county in which the property is located;
(2) Any part of the gross estate which is transferred
to a bona fide purchaser shall be divested of the lien and the lien shall be
transferred to the proceeds arising out of the transfer; and
(3) A mortgage on property pursuant to an order of
court for payment of charges against the estate and expenses of administration
shall constitute a lien upon the property prior and superior to the tax lien,
which tax lien shall attach to the proceeds.