Category: Wisdoms

  • What to Consider Before Buying a Condo

    Hawai‘i has a higher percentage of its population living in condominiums than any other state. Reasons include the relative scarcity of land and the time and expense of buying and maintaining single-family homes, making condos attractive, especially for the elderly.

    But like any investment, condos come with risks. Here are some things that people may wish to think about before buying into a condo.

    Are you ready for common decision making? Obviously, it’s great to have a built-in community, not only for the fellowship that it brings, but also the shared costs. Why pay for the cost to maintain a pool by yourself when you can contribute only a small percentage of that expense and still enjoy a swim?

    However, if you have only lived in a single-family home and are used to making your own decisions, keep in mind that with a condo, you are buying into (literally and figuratively) a democracy. Some condo democracies are great, but many are extremely dysfunctional. And sometimes it takes democracies a long time to recognize and correct their errors.

    What do the reserves look like? Hawai‘i was the first state to require mandatory savings on the part of condominium boards so that money is set aside to maintain the building and meet future expenses. Unfortunately, while that law exists on paper, it is often not adhered to. When it is ignored, owners can be hit with large special assessments or loan payment obligations. Make sure the reserves are fully funded per the law.

    The absence of maintenance fee increases is not a good thing. One board that was successfully sued bragged about how maintenance fees didn’t go up for more than 10 years. Of course, over the course of those 10 years, wages rose, insurance increased and other costs went up. This resulted in things being neglected. At one point, the condominium had more roof leaks than it had condominium units.

    Newer is not always better. We have all seen the gleaming new buildings, but quite often, the shiny new towers have significant construction defects. Some of the developers, contractors, architects and engineers who build them shower
    politicians with campaign contributions. These may not be disconnected phenomena. Do campaign contributors want something for the money they are shelling out, maybe in the form of laws that are designed to protect them from claims by consumer homeowners? While it’s always nice to buy into a brand-new building, prospective purchasers might want to wait a few years to see what defects are discovered by those living there.

    Will the building remain accessible for your current and future needs? Especially as we age, accessibility becomes more paramount. While this is usually less of a problem in newer buildings that are supposed to be built pursuant to modern codes, that certainly is not the case for older buildings. A two- or three-story walk up might not be a problem when you’re in your 40s, but it could very well be an issue in your 70s. Additionally, the Fair Housing Act usually only requires that a building allow an accommodation, it is not usually required to pay for it. You as the unit owner can obtain reasonable accommodations, but usually you need to pay for them.

    Do your research and work with local professionals to ensure a successful, informed purchase.

    REVERE & ASSOCIATES, LLLC
    970 North Kalaheo Ave., Ste. A301, Kailua, HI 96734
    808-791-9550 | terry@revereandassociates.com
    revereandassociates.com

    Terry Revere is an attorney with Revere & Associates who specializes in representing Hawai‘i’s homeowners.

    Hawai‘i has a higher percentage of its population living in condominiums than any other state. Reasons include the relative scarcity of land and the time and expense of buying and maintaining single-family homes, making condos attractive, especially for the elderly. But like any investment, condos come with risks. Here are some things that people may…

  • Advance Care Planning & Directives

    If a parent becomes incapacitated, adult children are frequently called upon to serve as healthcare advocates for their parents. Advance care planning is the ongoing process that includes discussion, reflection upon and preparation for future medical decisions based on personal values.

    An advance care directive, a legal document resulting from this process, records those wishes, and are widely promoted as a tool to ease the decision-making burden. This legal document allow individuals to communicate their preferences for future medical care in the event they can no longer express their wishes. Advance directives typically include two key components: end-of-life decisions and a Durable Power of Attorney for Health Care (DPAHC). End-of-life decisions enable individuals to specify which treatments they would accept or refuse near the end of life, while a DPAHC authorizes another person to make medical decisions on their behalf if they become incapacitated.

    Advance care planning can promote autonomy, dignity and a sense of control over future medical care, while increasing the likelihood that treatment aligns with personal preferences. However, the presence of an advance directive does not necessarily improve family dynamics after a parent’s death or prevent conflict among surviving adult children.

    YIM & YEMPUKU, LLLC – Estate Planning Attorneys
    2054 S. Beretania St., Honolulu, HI 96826
    808-524-0251 | yimandyempukulaw.com

    If a parent becomes incapacitated, adult children are frequently called upon to serve as healthcare advocates for their parents. Advance care planning is the ongoing process that includes discussion, reflection upon and preparation for future medical decisions based on personal values. An advance care directive, a legal document resulting from this process, records those wishes,…

  • Advice for the ‘Sandwich Generation’

    If you’re between the ages of 35 and 60, you may be feeling a financial pinch from both your growing — or grown — children and your aging parents or in-laws.1 You may also find yourself juggling your work commitments and the expectations of family members for your time and support. As a member of what’s known as the “sandwich generation,” you’re not alone.

    Children today leave home later than in previous generations and less permanently. Today, children tend to live at home longer — or move out and return over time, sometimes with their own children in tow. And parents tend to live longer, often spending 25 years or more in retirement. If you’re wondering how to keep yourself financially on track, the following strategies may help.

    ■ Pay yourself first. Instead of paying your bills and other expenses and save what’s leftover, automatically route a portion of your paycheck to your 401(k), Roth IRA or other retirement savings account — and encourage your working children to do the same. This ensures you’re regularly investing in your future financial security.
    ■ Talk openly about finances. Discuss the basic tenets of sound money management with your children to help them develop good financial habits at an early age. According to an Ameriprise Financial study, 70% of parents involve their children in family financial decisions to help instill values and principles,2 allowing them to see where they can contribute. It’s equally important to talk with your parents about their plan for meeting their future financial obligations.
    ■ Make sure financial and legal documents are up to date. You, your parents and your children must determine whether you’ll need a Durable Power of Attorney, a Healthcare Proxy, a Living Will and a Last Will and Testament. Also, review and update beneficiary designations on investments and insurance policies (they may outweigh what is stated in a will). Keep a list of your financial accounts and passwords — know where your parents and children keep theirs.
    ■ Discuss long-term care insurance. In-home health care costs or a lengthy nursing home stay can be very costly. If you or your parents don’t have long-term care insurance, it may be wise to look into it to see if it fits with your family’s goals and options.
    ■ Explore resources to help offset costs. If your children are attending college, research the scholarship opportunities or work-study programs that may be available to them. Also, find out whether your parents qualify for any federal, state or local benefits for their care.
    ■ Set limits. If you have the desire and financial resources to support adult family members, it’s important to balance your generosity with ensuring you have enough money to last through retirement — and support your family’s own financial independence. Be clear with your children and parents about how much financial support you are realistically able to provide.

    Managing the responsibility that comes with being a member of the sandwich generation can be difficult. For help understanding how to plan for your future while caring for those who matter most to you, consult a reputable financial advisor. An advisor can help you create a financial strategy that makes sense for your unique situation.

    MICHAEL W. K. YEE, CFP,® CFS,® CLTC, CRPC®
    1585 Kapiolani Blvd., Ste. 1100, Honolulu, HI 96814
    808-952-1240 | michael.w.yee@ampf.com
    ameripriseadvisors.com/michael.w.yee
    Michael W. K. Yee, CFP®, CFS®, CLTC®, CRPCTM, is a Private Wealth Advisor/Financial Advisor with Ameriprise Financial Services, LLC in Honolulu, Hawaii. He specializes in fee-based financial planning and asset management strategies and has been in practice for 42 years.

    1Pew Research Center, “More than half of Americans in their 40s are “sandwiched” between an aging parent and their own children”. www.pewresearch.org/short-reads/2022/04/08/more-than-half-of-americans-in-their-40s-are-andwichedbetween-an-aging-parent-and-their-own-children 2Ameriprise Financial Parents & Finances Study, 2025. Ameriprise Financial, Inc. and its affiliates do not offer tax or legal advice. Consumers should consult with their tax advisor or attorney regarding their specific situation. Investment products are not insured by the FDIC, NCUA or any federal agency, are not deposits or obligations of, or guaranteed by any financial institution, and involve investment risks including possible loss of principal and fluctuation in value. Ameriprise Financial cannot guarantee future financial results. Securities offered by Ameriprise Financial Services, LLC. Member FINRA and SIPC. ©2026 Ameriprise Financial, Inc. All rights reserved.

    If you’re between the ages of 35 and 60, you may be feeling a financial pinch from both your growing — or grown — children and your aging parents or in-laws.1 You may also find yourself juggling your work commitments and the expectations of family members for your time and support. As a member of…

  • Making Tough Care Decisions

    Making long-term care decisions for aging parents can be emotional, stressful and complicated. The biggest challenge is navigating differences without damaging family relationships.

    Different views are normal: Each sibling brings a unique perspective. One may prioritize safety, another independence and another cost/logistics. Different priorities don’t mean someone is wrong—they reflect different experiences and concerns.

     There’s no perfect answer: When it comes to long-term care, there is rarely a single “right” solution. In-home care, assisted living, memory care and nursing facilities all involve trade-offs, so focus on what reasonably meets your parent’s safety, dignity and quality-of-life needs.

     Help exists: Geriatric care managers, eldercare attorneys, social workers, patient advocates and support groups can help guide difficult decisions. Kupuna Pono also offers family conferencing and mediation to help resolve kupuna care disagreements.

     Keep relationships first: Aim for 80% agreement on the plan, then commit 100% to supporting it. Protecting family relationships matters more than being right. Disagreements happen, but remember that help is available and families can move forward together with the right support and perspective.

    YIM & YEMPUKU, LLLC–Estate Planning Attorneys
    2054 S. Beretania St., Honolulu, HI 96826
    808-524-0251 | yimandyempukulaw.com

    Making long-term care decisions for aging parents can be emotional, stressful and complicated. The biggest challenge is navigating differences without damaging family relationships.  Different views are normal: Each sibling brings a unique perspective. One may prioritize safety, another independence and another cost/logistics. Different priorities don’t mean someone is wrong—they reflect different experiences and concerns.…

  • Distribution Rules for Inherited IRAs

    An inherited individual retirement account (IRA) is a potential financial windfall that may create new opportunities for achieving your financial goals. If you are a beneficiary or expect to be one in the future, know that recent legal changes regarding inherited IRAs can result in costly implications if not followed properly. The Internal Revenue Service (IRS) has clarified rules included in the 2019 SECURE Act that are important for IRA beneficiaries to understand. Determine if these new rules are applicable to your situation:

    Different beneficiaries have different rules. Spouse beneficiaries will ultimately have much more flexibility with how they utilize an inherited IRA. Spouses can spread withdrawals from the account over their lifetime or roll the funds into their own IRA. For most other beneficiaries, such as children or grandchildren, the rules are more rigid. Non-spouse beneficiaries inheriting an IRA between 2020 and 2024 were required to withdraw all assets from the account within 10 years of the original account owner’s death.

    New, more stringent rules in 2025. Those who inherited an IRA beginning in 2025 face more restrictions. In most cases, non-spouse beneficiaries must take annual IRA distributions from the inherited account. The annual distribution requirement applies if the account was inherited from an IRA owner who already reached the required minimum distribution (RMD) age before death, which, under current law, is age 73.

    Annual distributions are determined using the IRS life expectancy calculation tables. The distribution must, at a minimum, equal this calculated distribution amount. The beneficiary can take larger distributions, but annual minimum withdrawal requirements must be met for the first nine years. In year 10, the balance of the IRA must be distributed. Failure to withdraw at least the minimum amount can result in a penalty equal to 25% of the under-distributed amount. For example, if you are required to withdraw $20,000 from the inherited IRA, but only took $10,000, you could be subject to a $2,500 penalty.

    If the account was inherited from an owner who did not yet reach RMD age, the beneficiary still has 10 years to withdraw all the money. The beneficiary will also have the choice to determine how much and how often. The new, more stringent rules don’t apply to beneficiaries who are minor children, have a disability/chronic illness or for IRAs held in certain trusts. If these exceptions are met, beneficiaries can “stretch” inherited IRA withdrawals over their lifetime. To determine if your inherited IRA is subject to new distribution rules, contact a financial advisor and tax professional.

    Planning is even more critical. Withdrawals from an inherited traditional IRA result in more taxable income. Consider the financial and tax implications of your withdrawal strategy, including whether the distributions will change your tax bracket. Distributions could mean your income reaches thresholds that result in increased taxes, higher premiums for marketplace health insurance coverage under the Affordable Care Act, or a higher tier for Medicare Part B and D premiums.

    Contact your financial advisor to discuss the impact of an inherited IRA.

    MICHAEL W. K. YEE, CFP,® CFS,® CLTC, CRPC®
    1585 Kapiolani Blvd., Ste. 1100, Honolulu, HI 96814
    808-952-1240 | michael.w.yee@ampf.com
    ameripriseadvisors.com/michael.w.yee
    Michael W. K. Yee, CFP®, CFS®, CLTC®, CRPCTM, is a Private Wealth Advisor/Financial Advisor with Ameriprise Financial Services, LLC in Honolulu, Hawai‘i. He specializes in fee-based financial planning and asset management strategies and has been in practice for 42 years.

    Certified Financial Planner Board of Standards, Inc. (CFP Board) owns the CFP® certification mark, the CERTIFIED FINANCIAL PLANNER™ certification mark, and the CFP® certification mark (with plaque design) logo in the United States, which it authorizes use of by individuals who successfully complete CFP Board’s initial and ongoing certification requirements.

    Investment products are not insured by the FDIC, NCUA or any federal agency, are not deposits or obligations of, or guaranteed by any financial institution, and involve investment risks including possible loss of principal and fluctuation in value. Ameriprise Financial, Inc. and its affiliates do not offer tax or legal advice. Consumers should consult with their tax advisor or attorney regarding their specific situation. Ameriprise Financial cannot guarantee future financial results. Securities offered by Ameriprise Financial Services, LLC. Member FINRA and SIPC. ©2026 Ameriprise Financial, Inc. All rights reserved.

    An inherited individual retirement account (IRA) is a potential financial windfall that may create new opportunities for achieving your financial goals. If you are a beneficiary or expect to be one in the future, know that recent legal changes regarding inherited IRAs can result in costly implications if not followed properly. The Internal Revenue Service…

  • How to Minimize Capital Gains Taxes

    Selling real estate is one of the most impactful financial decisions you make. Understanding taxes, especially capital gains, can make the difference between simply selling a property and creating a lasting legacy.

    When you sell your property for more than you paid for it, the profit is called a “capital gain.” If the property was owned for less than a year, the capital gain amount is taxed as ordinary income. If held longer, it’s taxed at a lower federal rate (0%, 15% or 20%), plus state taxes. But there are ways to minimize these taxes.

    The primary residence exclusion benefit allows eligible homeowners to exclude up to $250,000 of capital gains for a single owner and $500,000 for married owners filing jointly, if they’ve lived in the property two of the last five years.

    For investment properties, a 1031 exchange lets you sell and reinvest in another like-kind property, deferring capital gains and keeping more equity working for you.

    A 1031 exchange can improve cash flow, diversify your portfolio and strengthen your real estate plan by passing on property with a stepped-up cost basis. By planning early and always seeking advice from a tax professional and real estate wealth advisor, you can prevent family disputes and create strategies to build, protect, preserve and transfer wealth for future generations.

    THE IHARA TEAM OF KELLER WILLIAMS HONOLULU
    1347 Kapiolani Blvd., Ste. 300, Honolulu, HI 96814
    808-427-3006 | ihara@iharateam.com
    iharateam.com

    Selling real estate is one of the most impactful financial decisions you make. Understanding taxes, especially capital gains, can make the difference between simply selling a property and creating a lasting legacy. When you sell your property for more than you paid for it, the profit is called a “capital gain.” If the property was…

  • Minimizing Estate Taxes

    Hawai‘i’s estate tax exclusion remains at $5,490,000 per person, with tax rates as high as 20%. While this may seem like a high threshold, many Hawai‘i residents can exceed it quickly—especially when factoring in the value of a primary residence, inherited assets, life insurance proceeds, retirement accounts and investment portfolios.

    Minimizing exposure to Hawai‘i’s estate tax should be a key part of your estate planning strategy. One of the most effective yet often over-looked tools is estate tax portability. This allows a surviving spouse to use the unused portion of the deceased spouse’s estate tax exclusion—potentially doubling the exclusion to $10,980,000. However, portability is not automatic. You must file a timely Hawai‘i estate tax return after the first spouse passes away, even if no tax is due at that time. Unfortunately, many families miss this opportunity because their advisors whether attorneys or CPAs—are unfamiliar or uncomfortable with the process and simply don’t file the return.

    Failing to claim portability can result in a significant and unnecessary estate tax burden when the surviving spouse dies.

    If you or your spouse have a combined estate nearing or exceeding Hawai‘i’s exclusion amount, now is the time to plan ahead and take full advantage of the available estate tax strategies.

    YIM & YEMPUKU, LLLC–Estate Planning Attorneys
    2054 S. Beretania St., Honolulu, HI 96826
    808-524-0251 | yimandyempukulaw.com

    Hawai‘i’s estate tax exclusion remains at $5,490,000 per person, with tax rates as high as 20%. While this may seem like a high threshold, many Hawai‘i residents can exceed it quickly—especially when factoring in the value of a primary residence, inherited assets, life insurance proceeds, retirement accounts and investment portfolios. Minimizing exposure to Hawai‘i’s estate…

  • Is Travel on Your Retirement Agenda?

    One of the great benefits of retirement is having the freedom to pursue new interests and hobbies at your leisure. For many, travel is at the top of their retirement bucket list. The key question is how to make sure your retirement savings can keep up with your travel ambitions. The following considerations can help you determine your answer:

    Make travel a part of your retirement budget. Without the funds to pursue travel, you likely won’t get too far. As you plan for your living expenses, include travel as a line item in your retirement budget. Identify a portion of your monthly income to cover travel expenses before you hit the road.

    Consider travel timing. Most retirees plan their biggest travel excursions in the early years of retirement, when health challenges may be fewer and stamina is greater. Therefore, your travel budget may represent a larger portion of your overall expenses in the first years of retirement. If this aligns with your travel vision, factor it into your retirement budgeting strategy.

    Determine your travel style. To come up with a reasonable cost estimate, identify the types of traveling you would like to do. Are you more interested in short trips to nearby locations, mostly traveling by car? Do you plan to explore the country in an RV? Are you looking to visit foreign destinations on a regular basis? Your travel goals will tell you a lot about how much you are likely to spend, which should be reflected in your retirement plan.

    Find ways to cut costs. It’s easy to face “sticker shock” when you travel. Expenses like food (usually eating out), lodging and transportation can add up quickly. If you plan to stay in one place for an extended period, look into renting a home or apartment rather than “hotel-ing” it. Try to eat like the locals by buying food at grocery stores and markets. Take the time to look for flight deals or make your automobile travel routes as efficient as possible. One of the perks of being retired is that you may have more flexibility than working people to lock in deals by traveling off-season or at other unpopular times.

    Don’t overlook insurance needs. Travel insurance may be appropriate if you get sick or lose luggage on a trip. Medicare is not accepted outside the US, and even within the US, you want to be sure your health insurance has you covered in the states you’re visiting.

    Look for discounts and rewards. Costs for some activities are reduced for seniors. Although discounts may be modest, every dollar counts. Check to see what discounted options are available through AAA, AARP or others. Pursue smart credit card strategies that help you earn rewards: free travel or cash back on purchases. If travel is in your plans when you leave the workforce, it’s key to go beyond dreaming and do some significant preparation. Use the time you have now to set specific goals and build savings that will help make your dreams a reality

    MICHAEL W. K. YEE, CFP,® CFS,® CLTC, CRPC®
    1585 Kapiolani Blvd., Ste. 1100, Honolulu, HI 96814
    808-952-1240 | michael.w.yee@ampf.com
    ameripriseadvisors.com/michael.w.yee

    Michael W. K. Yee, CFP®, CFS®, CLTC®, CRPCTM, is a Private Wealth Advisor/Financial Advisor with Ameriprise Financial Services, LLC in Honolulu, Hawaii. He specializes in fee-based financial planning and asset management strategies and has been in practice for 41 years. Certified Financial Planner Board of Standards Inc. owns the certification marks CFP®, CERTIFIED FINANCIAL PLANNER™ and CFP certification mark (with plaque design) in the U.S. Investment products are not insured by the FDIC, NCUA or any federal agency, are not deposits or obligations of, or guaranteed by any financial institution, and involve investment risks including possible loss of principal and fluctuation in value.

    Ameriprise Financial Services, LLC. Member FINRA and SIPC.

    ©2026 Ameriprise Financial, Inc. All rights reserved.

    One of the great benefits of retirement is having the freedom to pursue new interests and hobbies at your leisure. For many, travel is at the top of their retirement bucket list. The key question is how to make sure your retirement savings can keep up with your travel ambitions. The following considerations can help…

  • A Hui Hou

    All good things must come to an end, or so they say. This is the last article by this author that will appear in this publication. I wish the Generations team and readers all the best in every way.

    I hope that over the past 15 years, you have gleaned from this column how important it is to have a clear, comprehensive estate plan—or, as I prefer to write it, “est8plan”. There are so many things that are beyond our control, and our est8plans can help us and our loved ones when inevitable bad things, such as death and disability, happen down the line.

    Please know and live the reality that through estate planning, you can create better, if not objectively good, outcomes for yourself and your loved ones as you transition through the stages of life. Your imagination and your collaboration with competent and creative advisors will give rise to an est8plan that will help you sleep at night. You will rest easy in the knowledge that you have done everything you can to put yourself and your loved ones in the best possible position to face the future. “May the road rise to meet you” as you embark on your own estate planning adventure, and remember: an intellectual solves problems… but a genius avoids them. Your est8plan can help you and your ‘ohana avoid the problems that must be solved when people fail to plan.

    Aloha pumehana, Scott Makuakane

    EST8PLANNING COUNSEL LLLC
    Scott Makuakane, Counselor at Law
    808-587-8227 | maku@est8planning.com
    Est8planning.com

    All good things must come to an end, or so they say. This is the last article by this author that will appear in this publication. I wish the Generations team and readers all the best in every way. I hope that over the past 15 years, you have gleaned from this column how important…

  • Finding a Trustworthy Financial Advisor

    Thinking about investing? You’re not alone. According to Gallup, 85% of Americans are actively seeking financial guidance—but BBB finds that too often, people lose money to bad advice and fraudulent “investment gurus” posing as experts.

    BBB’s 2024 Scam Tracker Risk Report found that investment scams are the riskiest in North America, with the highest susceptibility rate and losses in the thousands!

    With this in mind, working with a trustworthy financial advisor isn’t just smart—it’s safer.

    According to Ramsey Solutions:

    • 44% of people with advisors have $100K-plus saved for retirement, vs. 9% of solo investors.
    • 68% of millionaires surveyed used financial advisors to build their wealth.

    Working with a trustworthy professional is a difference-maker. That’s where third-party trust indicators such as the Better Business Bureau come in. While BBB doesn’t give financial advice, it does help you find financial professionals you can trust.

    Read reviews, check complaint histories, identify accreditation, get multiple quotes and use BBB’s free Financial Wellness HQ tools: bbb.org/all/financial-wellness-hq.

    BETTER BUSINESS BUREAU GREAT WEST+PACIFIC (nonprofit)
    800-460-0910 | info@thebbb.org | thebbb.org
    Ad or company clarification: bbb.org
    Report a scam: bbb.org/scamtracker
    File a complaint: bbb.org/file-a-complaint

    Thinking about investing? You’re not alone. According to Gallup, 85% of Americans are actively seeking financial guidance—but BBB finds that too often, people lose money to bad advice and fraudulent “investment gurus” posing as experts. BBB’s 2024 Scam Tracker Risk Report found that investment scams are the riskiest in North America, with the highest susceptibility…

  • The Good & Bad News About Estate Tax

    The One Big Beautiful Bill, now a law, “permanently” increased the maximum lifetime exclusion amount that any US citizen or resident can use to shelter gifted assets or assets passing at death from the federal gift or estate tax. The new estate and gift tax exclusion beginning in 2026 is $15 million per US citizen and resident. The exclusion was originally slated to be reduced to $5 million plus inflation in 2026.

    “Permanent” is only permanent as long as the current administration is in control. However, the estate transfer tax system is a very unpopular tax. Consider three reasons why the federal estate tax exemption most likely will not be reduced:

    1) In the past 100 years, the exclusion has only increased. In the 1980’s, the estate tax was $600,000.

    2) Congress, who is in charge of increasing or decreasing the exclusion, for the most part, is made up of wealthy individuals. Would they pass a law that negatively impacts themselves?

    3) The estate transfer tax feels very distasteful to so many US citizens and residents. When Frank Luntz, a wordsmith, helped then-President Bush paint a negative perspective about the estate tax, he renamed the estate transfer tax “The Death Tax.” Immediately, US citizens and residents felt it was an unfair tax. As the saying goes, “How can we ask families to visit the taxman and the grave-digger on the same day?”

    YIM & YEMPUKU LAW FIRM
    2054 S. Beretania St., Honolulu, HI 96826
    808-524-0251 | yimandyempukulaw.com

    The One Big Beautiful Bill, now a law, “permanently” increased the maximum lifetime exclusion amount that any US citizen or resident can use to shelter gifted assets or assets passing at death from the federal gift or estate tax. The new estate and gift tax exclusion beginning in 2026 is $15 million per US citizen…

  • Managing Aging Parents’ Finances

    Making financial decisions takes time, attention and energy at any age. In the case of elderly adults, it may become increasingly difficult to manage finances, particularly if their health is declining or they’re experiencing a cognitive issue. If you’re providing support to aging parents—or plan to in the future—here are some tips on how to handle the situation and prepare for what’s to come.

    Don’t wait to start talking about money.

    It may be uncomfortable to ask your parents to discuss their finances with you, but it’s essential that you are familiar with their intentions for future care and the plans they have in place. When you broach the subject, emphasize that you are looking for only a high-level overview so that you can have more peace of mind about your parents being well cared for. This initial conversation can help set the groundwork for future discussions.

    Create a contact list.

    If your parents experience a sudden change in health that affects their ability to manage their affairs, it’s important to have a game plan. If you anticipate paying bills, making insurance claims and handling other financial tasks, ask your parents for a contact list for the professionals they work with and where their accounts are held. You may need to be an authorized user or power of attorney to be allowed access to certain accounts. Consult a lawyer to talk through what permissions may be necessary for you to step in if the need arises.

    Build a support network.

    Talk with siblings or other trusted family members about what your parent’s possible care plan could look like. While this conversation can be tough to initiate, it’s often easier to bring everyone together while your parents are still in good mental and physical health. Discuss who can realistically provide support: in what way and at what cost. Proactively deciding who can drive your parents to appointments, manage financial affairs, care for their home and handle other tasks can help avoid a strain down the road.

    Anticipate future lifestyle changes and challenges.

    Even if they aren’t yet needed, explore options and costs at various assisted living and memory care services. Check your parents’ insurance policies to see if and how services might be covered. You may want to explore whether their home or yours could be modified to provide additional space or comforts, such as wheelchair access. Knowing what choices exist and how your parents feel about each one can help you make future decisions with more confidence.

    Know your rights at work.

    The Federal Family and Medical Leave Act of 1993 (FMLA) allows covered employees up to 12 weeks of unpaid leave to provide care for a family member with a serious health condition. Consult your employer’s human resources department to learn about their policies for employees who are caring for a parent and how to initiate a claim. Many employers have access to resources and support groups to help you manage home and at work duties.

    Maintain momentum on your own financial goals.

    It’s prudent to look at your finances to see how much support you could provide your parents, if needed, without jeopardizing your retirement and future health care needs. Your financial advisor and lawyer can help you take the steps necessary to feel more confident.

    MICHAEL W. K. YEE, CFP,® CFS,® CLTC, CRPC®
    1585 Kapiolani Blvd., Ste. 1100, Honolulu, HI 96814
    808-952-1240 | michael.w.yee@ampf.com
    ameripriseadvisors.com/michael.w.yee
    Michael W. K. Yee, CFP®, CFS®, CLTC®, CRPCTM, is a Private Wealth Advisor/
    Financial Advisor with Ameriprise Financial Services, LLC in Honolulu, Hawaii.
    He specializes in fee-based financial planning and asset management strategies
    and has been in practice for 41 years.
    1U.S. Department of Labor: The Family and Medical Leave Act of 1993
    (https://www.dol.gov/agencies/whd/laws-and-regulations/laws/fmla)
    Investment products are not insured by the FDIC, NCUA or any federal agency, are
    not deposits or obligations of, or guaranteed by any financial institution, and in-
    volve investment risks including possible loss of principal and fluctuation in value.
    Ameriprise Financial, Inc. and its affiliates do not offer tax or legal advice. Consum-
    ers should consult with their tax advisor or attorney regarding their specific situation.
    Ameriprise Financial cannot guarantee future financial results.
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    Making financial decisions takes time, attention and energy at any age. In the case of elderly adults, it may become increasingly difficult to manage finances, particularly if their health is declining or they’re experiencing a cognitive issue. If you’re providing support to aging parents—or plan to in the future—here are some tips on how to…