Category: Wisdoms

  • 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.
    Securities offered by Ameriprise Financial Services, LLC. Member FINRA and SIPC.
    ©2025 Ameriprise Financial, Inc. All rights reserved.

    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…

  • Documenting Your Hopes & Values

    Parents have their own unique perspective on how to raise their children, and what values and lessons to instill. They also have personal beliefs about how their children should manage money.

    Most parents would prefer that an inheritance serve to enrich and support their child’s life rather than replace the need to work or find purpose. However, these personal intentions often do not fit neatly into the legal documents designed to distribute assets.

    A trust primarily focuses on appointing a trustee, naming beneficiaries and outlining the trustee’s powers and responsibilities. It rarely captures the parent’s hopes, values or deep understanding of their child, which should be the very foundation of any thoughtful estate plan.

    Your estate planner may provide a document in which you can detail your meaningful guidance—beyond the legal framework—for your child’s guardians and trustees. In this document, you can communicate your wishes, values and insights—how you envision your child using inherited assets to develop a fulfilled, purposeful and meaningful life. It may also include a place to record important information, such as your child’s medical needs, routines and the significant people in their life. Ask your representative about this additional option.

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

    Parents have their own unique perspective on how to raise their children, and what values and lessons to instill. They also have personal beliefs about how their children should manage money. Most parents would prefer that an inheritance serve to enrich and support their child’s life rather than replace the need to work or find…

  • Will a Will Do What You Think It Will?

    Most people think of a last will and testament as the cornerstone of an estate plan. For most of us, however, it’s a lousy cornerstone. Your will is often simply a safety net that helps make sure your overall estate plan is going to work as it was designed.

    Your will is like the spare tire in the trunk of your car. Hopefully, you will never need to use it because your assets are either in your revocable living trust or you have used other means to direct your assets to your beneficiaries so that the assets will avoid probate. But if you experience a flat along your journey, your family will be awfully glad you had the spare. Having a will provides added assurance that your wishes are going to be carried out.

    A more formal name for a will is “last will and testament.” The “last” part refers to the fact that you can sign as many wills as you like during your lifetime, but only the last one you signed before your death counts. A document called a “codicil” can amend one or more provisions of your will without completely replacing it. In the age of computers, codicils are still valid, but more often, we just do a whole new will. Why use two or more documents with conflicting provisions when you can simplify and use only one?

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

    Most people think of a last will and testament as the cornerstone of an estate plan. For most of us, however, it’s a lousy cornerstone. Your will is often simply a safety net that helps make sure your overall estate plan is going to work as it was designed. Your will is like the spare…

  • Protecting Your Child’s Assets

    Consider creating a trust to hold your child’s inheritance. Whether you are married or a single parent, consider how to ensure that your hard-earned assets are used properly for the benefit of your child, and not misused or taken away.

    Minor children cannot own assets, so if a minor is named as a beneficiary of life insurance and there is a surviving parent, the surviving parent will have to go to court to get permission to manage the minor child’s assets.

    Establishing a trust can ensure that we avoid court as much as possible. A trust also allows parents to appoint a trustee to manage the child’s assets for the benefit of the child, as well as protect the child’s assets from misuse.

    This trust for the benefit of your child is referred to as a “sub-trust” and rests within the revocable trust. It can be a successive recipient of your assets after your spouse.

    These trusts can protect your children in three phases of life: 1) 1 to 18 years of age; 2) 18 to when you feel the child is responsible enough to manage a large sum of money; and 3) for the rest of the child’s life, to protect the child from people who may try to take away the child’s assets, such as creditors, predators and ex-spouses.

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

    Consider creating a trust to hold your child’s inheritance. Whether you are married or a single parent, consider how to ensure that your hard-earned assets are used properly for the benefit of your child, and not misused or taken away. Minor children cannot own assets, so if a minor is named as a beneficiary of…

  • DIY Estate Planning

    The problem with do-it-yourself estate plans is they often don’t work in the real world. An effective plan involves far more than a set of documents—even very well-drawn documents that would stand up in any court in the land, as they say in the commercials. But why would you want your estate plan to have to stand up in court? Wouldn’t it be better to have a plan that will keep you and your family out of court?

    You should start by learning what you need to know in order to get your plan right, create and implement your plan and then make sure that it stays right. What I mean by “stays right” is that it continues to work according to your wishes in light of changes in your health, your stuff, the law and the list of people you like and trust. If you think a self-help computer program will accomplish that, then you may be one of those people P.T. Barnum said was born every minute.

    Bottom line: There is a lot of really good information on the internet. There is also a lot of misinformation. Do you have the training and background to tell one from the other when it comes to putting your estate plan in order? If so, then knock yourself out, professor. If not, there is something to be said for working with live professionals instead of an impersonal website that cares more about your credit card authorization than about what happens to you, your family and your stuff when you become incapacitated or die.

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

    The problem with do-it-yourself estate plans is they often don’t work in the real world. An effective plan involves far more than a set of documents—even very well-drawn documents that would stand up in any court in the land, as they say in the commercials. But why would you want your estate plan to have…

  • Downsizing Your Home in Retirement

    If you are approaching retirement or are already there, you may be considering downsizing your home. It’s a big decision, with ramifications for both your finances and lifestyle. As you think about downsizing, here are some things to keep in mind:

    Decide if a move makes sense. You can expect your needs and priorities to shift in retirement. Perhaps you won’t require as much square footage as you did when raising children, or you may find it challenging to keep up with home maintenance like you used to. It may be financially prudent and personally necessary to get out from under the costs and responsibilities of maintaining a larger property. Your location preference may shift, too. It is common for retirees to desire living closer to family members or in warmer climates.

    Create a timeline for your move. Discuss the pros and cons of selling your family home now or in the future. External market factors can affect your next step. Timing the sale of your home and the purchase of a new one can be tricky. Be prepared in the event your home doesn’t sell quickly.

    Consult a real estate professional. A real estate professional can help you determine what needs to be done before putting your house up for sale. Your home may need repairs to meet code or maximize its list price. Get an appraisal of current market value and decide what you’ll be comfortable spending on a new, smaller home.

    Review your housing options. Once you decide to downsize, start looking for a new place that meets your needs and budget. If you’re considering a condo or townhome (two popular options) make sure to factor in fees or assessments that are charged to residents when calculating the overall cost. If you’re in need of assisted living services, you’ll want to assess those costs—and whether they can be offset by long-term care insurance. In terms of location, you may want to think about the proximity of amenities and services including grocery stores, transportation and your doctor’s office.

    Be prepared for a multi-gen conversation. A change as impactful as selling your home may prompt conversations with family members about your estate. Downsizing usually requires whittling down the personal possessions. If you’re moving to a residence with managed maintenance, you won’t need the lawn mower or other tools in your garage. That extra set of dishes might be more useful to someone else. If you’re thinking of giving items to family members, be prepared for different generations having different interests and attachments to your home and belongings. Establish how you want to explain your lifestyle goals for retirement so family members can support you through the process.

    Review your finances carefully. Thoroughly review the financial implications of your specific situation. Downsizing does not necessarily mean you will suddenly have a cash windfall or establish enormous savings. Remember that HOA expenses, lifestyle changes and upgrades in construction quality can add to costs. Moving to a retirement area that has more built-in services can increase your cost of living, as well. Taking the time to explore the intricacies of your situation can prepare you for the next steps. And remember, you don’t have to do it alone. A qualified financial advisor can help you navigate this complex process with confidence.

    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, CRPC®, is a Private Wealth 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 41 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.

    Securities offered by Ameriprise Financial Services, LLC. Member FINRA and SIPC.
    ©2025 Ameriprise Financial, Inc. All rights reserved.

    If you are approaching retirement or are already there, you may be considering downsizing your home. It’s a big decision, with ramifications for both your finances and lifestyle. As you think about downsizing, here are some things to keep in mind: Decide if a move makes sense. You can expect your needs and priorities to…