HI SB2602

Amends Hawaii's estate tax law to incorporate federal inflation adjustments for the applicable exclusion amount under Internal Revenue Code section 2010(c)(3)(B), effective for decedents dying after December 31, 2020.

Modifies the definition of "applicable generation-skipping transfer tax rate" to include the federal inflation adjustment mechanism as computed by the Hawaii Department of Taxation.

Updates section 236E-6 to require the applicable exclusion amount calculation to include inflation adjustments computed by the department for decedents dying after December 31, 2020.

Removes the previous fixed reference date of December 31, 2017, allowing the exclusion amount to adjust annually for inflation rather than remain static.

Takes effect July 1, 2050, and applies to decedents dying and taxable transfers occurring after December 31, 2020.