HI SB3289

Adds definition of "immediate family member" to include spouse, child, sibling, parent, grandparent, grandchild, stepparent, stepchild, stepsibling, and equivalent adoptive relationships for purposes of Hawaii estate tax law.

Expands the marital deduction under Internal Revenue Code section 2056 to apply to transfers of property to any immediate family member, not just spouses, for both residents and nonresidents.

Exempts transfers to immediate family members from being classified as distributions to skip persons under the generation-skipping transfer tax, reducing the taxable amount for such transfers.

Applies to decedents dying or taxable transfers occurring after December 31, 2023.

Effective date is July 1, 3000 (note: this appears to be a clerical error for 2025).