Category: Articles

Social Security: A Valentine Tip
Valentine’s Day is upon us, making this a popular time of year for proclamations of love. Such displays of affection can be as simple and sweet as a heart with a “be mine” message, or as life altering as a vow before the altar.

If you happen to be a newlywed who is head over heels in love, you may not be focused on things such as taxes or Social Security, but you should be. If you plan to exchange your maiden name for a married name - including hyphenated names such as Smith-Jones - be sure you let Social Security know.

Telling us about your name change shortly after your marriage will help us keep track of your earnings and will ensure that you and your family get the Social Security retirement, disability and survivors coverage you’re entitled to. Also, if the Internal Revenue Service and Social Security records do not show the same name and Social Security number, your federal income tax refund could be delayed.

If you choose to use your maiden name consistently throughout your working years, you do not need to contact us. However, if you decide to change your name at a later time, you should let us know so that we can update your Social Security record and send you a Social Security card with your new name.

There’s no need to pay someone else to mail in the information for you. Changing your name with Social Security is a quick, easy and free:

Visit www.socialsecurity.gov/ssnumber

Read about the required documents

Click on Fill Out and Print an application (Form SS-5)

Or, call 1-800-772-1213 to obtain the form

We will need the completed application along with a marriage certificate or divorce decree verifying your old and new names. If you were born outside the United States, you also need proof of your U.S. citizenship or proof that you are lawfully living in the U.S. You can bring or mail these documents to us.

You may be focused on the one you love, and we don’t blame you. But if you like us (we hope you do), please visit our homepage (socialsecurity.gov) and click on the Facebook icon to Like us on Facebook. You can follow us on Twitter, too. We share information daily that can help you and all your Valentines.

Happy Valentine’s Day from Social Security.
Valentine’s Day is upon us, making this a popular time of year for proclamations of love. Such displays of affection can be as simple and sweet as a heart with a “be mine” message, or as life altering as a vow before the altar. If you happen to be a newlywed who is head over…
Lanakila: March For Meals Campaign

On March 1, 2012, hundreds of concerned citizens will join Lanakila Meals on Wheels in the March for Meals to raise awareness of the need to fund the Kupuna Care Program and combat senior hunger. Marchers from around the island, including seniors, elected officials, and Kupuna Care service participants, will gather at the State Capitol Rotunda at 10 a.m.

March for Meals is an annual national campaign, held in March of every year, and designed to increase public awareness for local senior nutrition programs. The campaign takes place in the month of March because it was during this month that the law was enacted that included Senior Nutrition Programs in the Older Americans Act.

Kupuna Care is a state-funded, county administered program that provides basic services to frail older adults who can’t live at home without assistance. Services include home-delivered meals, personal care, help with chores and transportation assistance. These services provide an important safety net that can help low and middle-income adults avoid going into poverty and being forced into more costly care settings.

The public is encouraged to attend. For information, please visit lanakilapacific.org or call 531-0555.

On March 1, 2012, hundreds of concerned citizens will join Lanakila Meals on Wheels in the March for Meals to raise awareness of the need to fund the Kupuna Care Program and combat senior hunger. Marchers from around the island, including seniors, elected officials, and Kupuna Care service participants, will gather at the State Capitol…
Walk Wise Hawai`i Keeps Seniors Safe

Walk Wise Hawai‘i (WWH) is celebrating its ninth year of bringing important safety tips to Hawai‘i’s senior pedestrians. This statewide pedestrian safety campaign, led by the State Dept. of Transportation and championed by Walk Wise Hawai‘i’s Lance Rae, is revving up 2012 with expanded community outreach programs.

The rate of pedestrian fatalities among Hawai‘i’s elderly has steady declined thanks in large part to WWH’s expanded programming. Last year, nearly 7,000 seniors took the Pedestrians Pledged to “walk wise,” which is to always look left-right-left before crossing and make eye contact with drivers when crossing.

This coming August, WWH will celebrate its Third Annual Pedestrian Safety Month. This month-long campaign is recognized by Lt. Gov. Brian Schatz as “the only statewide pedestrian safety month in the nation.” Look for more information on the Pedestrian Safety Month this summer to learn about how to be both a safe pedestrian and driver.

Throughout the year, WWH’s Speakers Bureau reach out to seniors through the Honolulu Police Dept.’s Aloha No Na Kupuna program on O‘ahu and with Neighbor Island police departments. If you have senior citizens in your community, you can contact WWH to schedule a guest speaker who can share information about pedestrian safety and provide safe road-crossing tips. The WWH Speakers Bureau provides reflective lights to carry during the early morning and evening hours and yellow tote bags to all seniors who take the WWH Pedestrian Pledge.

This year, WWH invites all Generations Magazine readers and their families to take the Walk Wise Hawai‘i Pedestrian Pledge and make walking safe in Hawai‘i.

For more information on Walk Wise Hawai‘i, please contact Lance Rae at 535-9099.

Walk Wise Hawai‘i (WWH) is celebrating its ninth year of bringing important safety tips to Hawai‘i’s senior pedestrians. This statewide pedestrian safety campaign, led by the State Dept. of Transportation and championed by Walk Wise Hawai‘i’s Lance Rae, is revving up 2012 with expanded community outreach programs. The rate of pedestrian fatalities among Hawai‘i’s elderly…
Financial: Uplifting Choices

Getting Your Plan in Order

Perhaps you’ve asked yourself questions like, “How can I plan? We just sold our home and bought a retirement condo. Our older child just moved across the country and our younger child will be getting married later this year. With so much change, how can we make plans?”

Life Changes Quickly

In each of our lives, change comes very quickly. You are going to face new circumstances every year. Yet planning exists to prepare for life - and to give your family members better lives. It is essential to create goals that help your family live better in the midst of new circumstances. Even if you or your family is going through major changes, there are several basic steps that will help you succeed in your plans.

Set Goals

Step one for a successful life is to have goals. It has been said, “If you don’t know where you’re going, you’re not likely to get there.” This is very true about goals for your family and for your estate. Think about goal-setting as though you are purchasing a birthday gift for a family member in a clothing store. A clothing store might have 20 or 30 different sizes. One size does not fit all in the area of clothing and it also doesn’t work for your family and estate plan.

How do you find the “right size?” Just like clothing for a family member must fit properly, in your planning for family, it’s important to decide the right time and amounts for an inheritance to be most beneficial for your children, grandchildren, nephews and nieces. Your other goals may include the age for heirs to receive property and reducing costs and estate taxes.

What Do You Own?

Can you write down a list of all the property you own? I once represented a married couple who estimated that they owned about $500,000 worth of property. However, when we went through their assets carefully it turned out they owned more than twice that amount and were millionaires. It’s not uncommon for people to “forget” or undervalue some of their assets.

Understanding your property starts with listing all of your assets – your savings account, certificates of deposit, home, IRA, 401(k) and personal assets, among others.

Children, Grandchildren, Nephews and Nieces

Your plan to benefit family during your lifetime or through your estate will vary greatly depending upon the ages and circumstances of your children and their needs. For parents with minor children, a key decision is to select a guardian. Minor children also need to have property held in trust, so there is appropriate investment and expenditure of those funds. For adult children, it’s important to think through the right time, right amount and right type of inheritance. Many families find that a trust that pays income for a number of years to adult children is also a very helpful method to provide added security for them. Some families get energized when they find that they can leave a legacy of significance to their community, while at the same time making sure to provide for their family needs.

A Convenient Way to Plan

Would you like to have a convenient way to think through some of these issues before you consult with your financial advisor or attorney? A free tool is available at kidney.giftlegacy.com where you can plan your will, consider whether a trust is right for your family, and request a free wills guide from the National Kidney Foundation of Hawai‘i. The secure web site lets you gather your information and ideas together, read general information about planning, and even prepare for a meeting with your advisors. Why not take a look at kidney.giftlegacy.com today? It just may help you answer the question, “How can I plan?”

For consultation call 589-5976. Be sure to register for a free eNewsletter and check out the wealth of information at www.kidneyhawaii.org.

Getting Your Plan in Order Perhaps you’ve asked yourself questions like, “How can I plan? We just sold our home and bought a retirement condo. Our older child just moved across the country and our younger child will be getting married later this year. With so much change, how can we make plans?” Life Changes…
When Good Drugs Go Bad
Help your drugs help you! Your medications only work as well as they are handled.

Where do you keep your medicines? Are they in different places — some in the medicine cabinet, some in the kitchen, and some in your car, purse or elsewhere? It’s important to keep track of your drugs so you know where they are when you need them.

Pharmacists encourage all of us to clean out our medicine cabinets once a year. Unused or expired drugs, over-the-counter medicines, vitamins and herbals can lose their strength and may be harmful to your health.

Five Safe Storage Tips:

Store containers in a cool, dry place. Your drugs may lose their potency before the expiration date if they are exposed to oxygen, heat, light or humidity. Don’t leave the cotton plug in the bottle. The cotton draws moisture into the container. Many people store their drugs in the bathroom. This is actually one of the worst places to keep medicine. Bathroom cabinets tend to be warm and humid.

Take inventory of all your medicines. Make sure that you’re familiar with the drugs and what they do. Talk to your pharmacist if you have any questions about your drugs.

Make sure that all drugs are clearly labeled and in their original containers, away from other substances that might be mistaken for them.

Keep drugs out of the reach of children. Keep them secure from teens, reducing the risk of misuse.

Throw away any drugs you no longer need. Do not share drugs with others.

Why Throw Drugs Away?

Part of taking drugs safely means not using them after their expiration date. Don’t take any chances with a medicine that no longer works the way it’s supposed to.

Throw away any drug you have not used in the past 12 months.

Throw away drugs no longer in their original container or that can no longer be identified.

Throw away medicines that have changed color, odor or taste, regardless of the expiration date. Throw away capsules or tablets that stick together, are harder or softer than normal, or are cracked  or chipped.

Check the expiration date for eye drops and eardrops, too. They may no longer be effective and, worse, could be a breeding ground for bacteria or fungus.

How Do I Throw Drugs Away?

When drugs are thrown away incorrectly, they can harm the environment, pets and/or children. Don’t flush old drugs down the toilet or pour them down a sink or drain.

Follow these easy steps before disposing drugs in the trash:

Pour the drug into a sealable plastic bag. If the drug is a solid (pill, liquid capsule, etc.), add water to dissolve it.

Add kitty litter, sawdust, coffee grounds (or any material that mixes with the drug and make it less appealing for pets and children to eat) to the plastic bag.

Seal the plastic bag and put it in the regular trash.

Remove and destroy all identifying personal information (prescription label) from all containers.

If you find a drug and you don’t remember what it is, or you have other drug-related questions, contact the Poison Center at 1-800-222-1222 (24-hours, toll-free, statewide).
Help your drugs help you! Your medications only work as well as they are handled. Where do you keep your medicines? Are they in different places — some in the medicine cabinet, some in the kitchen, and some in your car, purse or elsewhere? It’s important to keep track of your drugs so you know where they…
Your Mind & Body Diabetes: Are You Too Sweet?
Diabetes is a chronic disease characterized by high levels of blood sugar. According to the Centers for Disease Control and Prevention, 25.8 million children and adults in the United States, or 8.3% of the population, have diabetes. Of this number, 7 million are undiagnosed. Among seniors, 10.9 million, or 26.9% of all persons over the age of 65, have diabetes. It affects both men and women alike.

TYPES OF DIABETES

Type 1 diabetes can occur at any age, but it is most often diagnosed in children, teens or young adults. This disease results from the body’s failure to produce insulin (a hormone that regulates carbohydrate and fat metabolism in the body) and requires the person to inject insulin. The exact cause is unknown.

Type 2 diabetes makes up majority of the diabetes cases. It occurs in adulthood, but teens are now being diagnosed with it because of high obesity rates. It results from insulin resistance, a condition in which the body’s cells fail to use insulin properly.

COMMON SYMPTOMS OF DIABETES:

Frequent urination

Sudden weight loss

Unusual thirst

Increased hunger

Blurred vision

Wounds that are difficult to heal

Frequent infections

Tingling or numbness of hands and feet

How is diabetes diagnosed?

Blood testing of fasting blood glucose, oral glucose tolerance test or Hemoglobin A1 test is use to diagnose diabetes. A fasting blood glucose of 126 or higher is indicative of diabetes.

Are lifestyle modifications effective?

Lifestyle modifications, such as a healthy diet and exercise regimen, can be a very effective way to keep diabetes in control. Multiple small changes can lead to improvements in diabetes control, including a decreased need for medication.

The food wheel for diabetes information

The Plate Method encourages persons to eat their meals filling ½ their plate with fruits and vegetables, ¼ carbohydrates (starch) and ¼ lean protein.

What are the complications of diabetes?

Long-term complications include heart disease, stroke, kidney disease, neuropathy, eye diseases and peripheral vascular disease. These complications can seriously affect the quality of life of persons with diabetes.

How can a person prevent complications from diabetes?

Improved blood sugar control can slow the progression of long-term complications. Good control of blood pressure and cholesterol is needed. Any medications the physician prescribes to control these conditions need to be taken consistently. Take an aspirin once a day. Seek out dental care at the first sign of infection or other dental issues. Brush and floss daily. Check feet regularly and wear good footwear. Yearly eye exam to check vision is recommended. Reduce stress as much as possible. Quitting smoking is the best decision a person can make to improve their health.
Diabetes is a chronic disease characterized by high levels of blood sugar. According to the Centers for Disease Control and Prevention, 25.8 million children and adults in the United States, or 8.3% of the population, have diabetes. Of this number, 7 million are undiagnosed. Among seniors, 10.9 million, or 26.9% of all persons over the…
Your Mind & Body: Diabetes

Diabetes is a chronic disease characterized by high levels of blood sugar. According to the Centers for Disease Control and Prevention, 25.8 million children and adults in the United States, or 8.3% of the population, have diabetes. Of this number, 7 million are undiagnosed. Among seniors, 10.9 million, or 26.9% of all persons over the age of 65, have diabetes. It affects both men and women alike.

TYPES OF DIABETES

Type 1 diabetes can occur at any age, but it is most often diagnosed in children, teens or young adults. This disease results from the body’s failure to produce insulin (a hormone that regulates carbohydrate and fat metabolism in the body) and requires the person to inject insulin. The exact cause is unknown.

Type 2 diabetes makes up majority of the diabetes cases. It occurs in adulthood, but teens are now being diagnosed with it because of high obesity rates. It results from insulin resistance, a condition in which the body’s cells fail to use insulin properly.

COMMON SYMPTOMS OF DIABETES:

● Frequent urination
● Sudden weight loss
● Unusual thirst
● Increased hunger
● Blurred vision
● Wounds that are difficult to heal
● Frequent infections
● Tingling or numbness of hands and feet

HOW IS DIABETES DIAGNOSED?

Blood testing of fasting blood glucose, oral glucose tolerance test or Hemoglobin A1 test is use to diagnose diabetes. A fasting blood glucose of 126 or higher is indicative of diabetes.

ARE LIFESTYLE MODIFICATIONS EFFECTIVE?

Lifestyle modifications, such as a healthy diet and exercise regimen, can be a very effective way to keep diabetes in control. Multiple small changes can lead to improvements in diabetes control,  including a decreased need for medication.

The Plate Method encourages persons to eat their meals filling ½ their plate with fruits and vegetables, ¼ carbohydrates (starch) and ¼ lean protein.

WHAT ARE THE COMPLICATIONS OF DIABETES?

Long-term complications include heart disease, stroke, kidney disease, neuropathy, eye diseases and peripheral vascular disease. These complications can seriously affect the quality of life of persons with diabetes.

HOW CAN A PERSON PREVENT COMPLICATIONS FROM DIABETES?

Improved blood sugar control can slow the progression of long-term complications. Good control of blood pressure and cholesterol is needed. Any medications the physician prescribes to control these conditions need to be taken consistently. Take an aspirin once a day. Seek out dental care at the first sign of infection or other dental issues. Brush and floss daily. Check feet regularly and wear good footwear. Yearly eye exam to check vision is recommended. Reduce stress as much as possible. Quitting smoking is the best decision a person can make to improve their health.

Diabetes: Are You Too Sweet? by Dr. Ritabelle Fernandes, MD from the December-January 2012 issue of Generations Magazine, Hawai‘i’s Resource for Life
It’s a Good Move

As Baby Boomers begin to retire, many are choosing to downsize to a simpler life. After their children leave the nest, many seek a more comfortable living environment as they enter senior-hood. Some opt to spend their retirement years living in a smaller home, retirement community, or with their adult children. This transition is often overwhelming and very stressful. With years of memories and accumulated “stuff” in their home, people simply don’t know where to begin. The good news is that there is help available.

From decluttering . . .

The before picture before decluttering by Senior Move Managers

Senior Move Managers LLC, also dba Declutter Hawai‘i, was formed by Dan and Julie Ihara in October 2010. After years of servicing senior clients in their real estate business, they have created efficient, friendly tools that help seniors downsize their personal belongings. They’ve learned ways that help people de-clutter their homes and make decisions about their belongings. In January of 2011, they joined the National Association of Senior Move Managers (NASMM) as the first and only Senior Move Management firm in Hawai‘i. Dan’s niece, Cynthia Goya Arnold, is the Vice President of Operations and manages the day-to-day services for their clients. Since the inception, Senior Move Managers has helped dozens of clients move into retirement communities, condos, as well as helped clear out family estates.

“We’ve seen it all - from the vacant “hoarder home” to the everyday senior who has lived in the same home for 80 years. No job is too big or too small for us,” Dan says.

Senior Move Managers can also help with downsizing and de-cluttering homes to make them safer and more functional for those choosing to age in place. “Regardless of age, most people can use some help with de-cluttering,” Julie says. “We do everything possible to minimize stress for our clients.”

. . . to creating a fresh, new look again.

The after picture of decluttering by Senior Move Managers

Senior Move Managers is bonded, insured and nationally certified with the NASMM. As such, the company provides a free consultation to determine its clients’ goals, and offers a “plan of attack” and a schedule to meet those goals. Each client receives customized services based on their situation. Other services include creating floor plans, coordinating vendors and setting up new homes.

“Our clients tell us that they enjoy the peace of mind knowing that we’re here to help with every aspect of their move,” Dan says. “We started this business to help families through an often challenging phase of life. As a local, family-owned and -operated business, we treat our clients like family.”

For more information, call Cynthia Arnold at 221-8345 or Dan Ihara at 256-7873, or visit their website at www.smmhawaii.com.

As Baby Boomers begin to retire, many are choosing to downsize to a simpler life. After their children leave the nest, many seek a more comfortable living environment as they enter senior-hood. Some opt to spend their retirement years living in a smaller home, retirement community, or with their adult children. This transition is often…
Safe Harbor Home Care, Inc.

Are you a caregiver to your mom, dad or others in your family? Have you ever thought about seeking assistance but felt guilty about accepting outside help? You may feel like you’re giving up on your elders, but, in fact, receiving help can actually make you a better caregiver.

Chris and Evelyn enjoy the care at their own home.

Taking care of your elders means giving them the best care possible—whether the attention comes from you or from others. During the early years, your own loving hands and caring heart may be sufficient, but things could become more difficult as your elders need more assistance. Eventually your full time care giving can lead to burnout and poor health.

Safe Harbor Home Care, Inc. can be your partner in managing care giving for your family. Its team is lead by Ester Ramos, a registered nurse with 40 years of experience. She owned and managed a 23-bed care home for 13 years. Prior to that, she owned and managed a Medicare/Medicaid-certified home health agency in California for 10 years. In addition, she also managed a hospice agency for 3 years. Ester’s nursing and management background experience is invaluable in the homecare business.

Ester has surrounded herself with equally competent professionals to train, educate and supervise nurse’s aides. The trained staff shares the core belief that each client and their family situation is unique and must be respected and nurtured. With cultural awareness and sensitivity Safe Harbor establishes mutual trust and a therapeutic relationship.

Safe Harbor Home Care, Inc. 808-638-3638, www.safeharborhomecare.com.

Are you a caregiver to your mom, dad or others in your family? Have you ever thought about seeking assistance but felt guilty about accepting outside help? You may feel like you’re giving up on your elders, but, in fact, receiving help can actually make you a better caregiver. Taking care of your elders means…
Respite & Reprieve

Finding just the right place to provide care and attention for older adult family members can be challenging for caregivers who work full time during the day. It’s a serious dilemma: physically, the older adults may be fine, but may have dementia or be experiencing memory loss, and therefore cannot be safely left at home alone during the day.

The Franciscan Adult Day Center in Manoa, a program of St. Francis Healthcare System, provides caregivers peace of mind, knowing their family is in good hands while they’re at work.

Family caregivers must be available 24/7 and that can cause a drain on physical, emotional or spiritual health. To prevent caregiver burnout, the center also welcomes participants so that caregivers can enjoy some respite. A welcome break or being able to take care of other responsibilities during the day can make a world of difference for caregivers.

I know what it’s like to care for a family member. For years, I was the sole caregiver for my husband, who had Alzheimer’s. I can relate to both the caregivers as well as the participants in our program, formally known as the Sister Maureen Intergenerational Learning Environment (SMILE).

Whether it’s taking the time to understand the challenges and needs of the caregivers or spending time listening to the concerns of the participants, it’s a privilege to give my undivided attention to each of them. I have a great team of aides who help with a range of activities for the participants throughout the day. Whether it’s serving nourishing meals, leading an exercise group or planning a recreational activity, we’re always doing something to keep our participants active and engaged, while maintaining a structured environment. Studies show—and our experience confirms—that older adults need social interaction to prevent loneliness or depression. The quality of life can be maximized through activities, socialization and professional supervision.

We also take occasional field trips and invite guest speakers to the Franciscan Adult Day Center. Intergenerational learning is one of the unique features of our program as students from nearby schools come to share in activities that benefit everyone.

It’s amazing to see how much both the students and program participants enjoy themselves. We plan to replicate this model of intergenerational caring at the St. Francis Intergenerational Center in ‘Ewa, a new center that will combine adult day care and pre-school all in one convenient location to serve those in the burgeoning West O‘ahu region. Construction will begin next year on a parcel across from Franciscan Vista ‘Ewa, the St. Francis Healthcare System’s fully-occupied affordable senior independent living center.

For more information and/or for a tour of Franciscan Adult Day Center, call 988-5678 or visit www.franciscanadultday.com.

Finding just the right place to provide care and attention for older adult family members can be challenging for caregivers who work full time during the day. It’s a serious dilemma: physically, the older adults may be fine, but may have dementia or be experiencing memory loss, and therefore cannot be safely left at home…
Autumn Lessons for Retirement

In autumn, animals know winter is coming and take the steps to prepare. Bears grow thicker fur and settle in for peaceful hibernation. Squirrels collect and store acorns and other nuts. Birds, favoring warmer weather, migrate south for the winter.

When it comes to preparing for retirement, we can learn from the animals—making sure the transition into the later years of our lives is as smooth and comfortable as possible. The best place to start is a visit to www.socialsecurity.gov.

You can get an instant, personalized estimate of your future Social Security benefits at www.socialsecurity.gov/estimator.

To prepare for a comfortable retirement, you should start saving as early as possible. Social Security is the foundation for a secure retirement, but was never meant to be the sole-source of income for retirees. In addition to Social Security, you also will need savings, investments, pensions or retirement accounts to make sure you have enough money to live comfortably when you retire. Learn about retirement planning and how to save at www.socialsecurity.gov/retire2/other2.htm. But wait, there’s more.

If you decide you’re going to be a “snowbird” when retirement comes, and go to warmer climates during winter weather, make sure that your Social Security payment goes with you. The best way to do that is to use direct deposit. You never have to worry about your monthly payment — it will show up in your bank account whether you’re in the Dakotas or the Florida Keys. Learn all about electronic payments at www.socialsecurity.gov/deposit.

Whether you’re in the spring, summer, or entering the autumn of your life, the best time to start preparing for retirement is always the present. Even the animals know they can’t wait until the last minute to prepare for a comfortable winter. Take a lesson from our furry and feathered friends and prepare for your own comfortable, and cozy, retirement.

In autumn, animals know winter is coming and take the steps to prepare. Bears grow thicker fur and settle in for peaceful hibernation. Squirrels collect and store acorns and other nuts. Birds, favoring warmer weather, migrate south for the winter. When it comes to preparing for retirement, we can learn from the animals—making sure the…
New and Powerful Estate Planning Tool: the Hawai‘i Asset Protection Trust (APT)

Two years ago, Hawai‘i joined Delaware, Nevada and 11 other states in validating self-settled spendthrift trusts. What this means is that you can now create a trust for yourself that will protect your assets from your own creditors. This is a huge departure from prior law, which expressly prohibited such trusts. For convenience, we will call them APTs, which stands for Asset Protection Trusts.

Not only do APTs provide asset protection, they can also be made to last forever, or at least until all of the assets are used up. Hawai‘i law has long recognized something called the rule against perpetuities, which essentially says that a private trust (that is, any trust other than a charitable trust) can last for about 100 years, and then the trust must terminate, and the assets must be distributed. This is a throwback to the law of England (where most American law comes from) and a time when the king did not want land being tied up in trusts because it impaired his ability to tax it. Now that our government has developed a solution to this problem, Hawai‘i has joined the ranks of states that allow the creation of so-called Dynasty Trusts.

Hawai‘i’s first attempt at allowing APTs, which was back in 2010, was doomed to failure. For one thing, the law imposed a 1% tax on all assets transferred to APTs. The law also limited the kinds of assets that could be put into APTs, and it allowed a trustmaker (someone creating an APT) to place assets comprising no more than 25% of his or her net worth into an APT. Since the laws of other states did not include these restrictions, there was very little incentive for someone to create a Hawai‘i APT.

In 2011, our Legislature removed the restrictions on APTs, so that a person can place any kind of property into his or her APT, and there is no 1% tax imposed on each asset transferred into the trust. The new law became effective on July 1, 2011, and Hawai‘i APTs are now viable tools in many people’s estate plans.

A Hawai‘i APTs is not for everybody. You should only create one if you understand what it is and how it works, and before you do anything else, you should seek the assistance of competent legal counsel and other advisors who can help you evaluate whether this is a workable strategy for you.

The new Hawai‘i law says that you cannot be the trustee of your own APT, but you can pick any Hawai‘i resident or Hawai‘i financial institution as your trustee. The trustee can have the discretion to make distributions to you or for your benefit, but you cannot have the unfettered right to demand whatever you want whenever you want it. You can also retain the right to give the trustee investment advice, and you can also have the right to veto distributions from the trust.

Perhaps the most important thing to understand about Hawai‘i APTs is that they do not shelter assets from claims of existing creditors. In other words, you cannot incur a debt (for example, by way of a car accident or a bad business deal) and then create a Hawai‘i APT to shield you from liability on that debt. On the other hand, the ideal time to create a Hawai‘i APT is before you start a new business or launch a practice in a field such as medicine, law, or architecture, where legal claims against you are an ongoing risk.

For more information about Scott Makuakane and his law firm, Est8Planning Counsel, LLLC, visit www.est8planning.com. Or tune into his weekly TV talk show, Est8Planning Essentials on KWHE (Oceanic channel 11) at 8:30 a.m. on Sunday evenings.

Two years ago, Hawai‘i joined Delaware, Nevada and 11 other states in validating self-settled spendthrift trusts. What this means is that you can now create a trust for yourself that will protect your assets from your own creditors. This is a huge departure from prior law, which expressly prohibited such trusts. For convenience, we will…