Category: Wisdoms

  • 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…

  • Navigating Hawai‘i’s Condo Laws, Part 2

    Part 2 of this two-part series continues navigation of the challenges that can be found in the complex world of condominium law and how to pave the way for reform.

    Governance Gone Wrong

    Several recent incidents illustrate the challenges facing Hawai‘i’s community associations. On Hawai‘i Island, a condominium board began repairing common area la¯nai structures but later reclassified them as limited common elements, shifting the financial burden onto individual owners. This unexpected decision left residents scrambling to cover significant costs they had not anticipated. An arbitrator later determined the board was wrong, which cost the association a significant amount of attorneys fees.

    In another case, a board amended rules to benefit a favored owner, leveraging access to voting data while excluding opposing voices. These actions created significant mistrust among residents and highlighted the potential for abuse of power within these associations.

    Unauthorized contracts are another recurring issue. For example, a board president signed a multimillion-dollar construction contract without consulting other board members, just before being removed from office. This unilateral decision resulted in financial and legal complications for the entire community.

    Additionally, critics of boards often face intimidation tactics, such as threats of legal fees, which discourage dissent and oversight. And unfortunately, many condominium attorneys who ought to know better than to engage in these bullying tactics nevertheless do so that they can remain as attorneys for the board.

    These practices highlight urgent need for reform to ensure accountability and transparency.

    Building a Better Future

    Addressing these governance issues requires a multifaceted approach. Transparency should be a top priority. Clear guidelines for executive sessions and stricter rules for voting processes can prevent abuse and restore trust. Boards should be required to disclose meeting minutes and document and justify decisions made in private sessions. Ensuring that votes are conducted fairly and without undue influence is equally important to maintain the integrity of governance.

    Financial responsibility must also be enforced more rigorously. Penalties for noncompliance with reserve fund requirements should be increased to deter negligence and protect owners from surprise assessments. Associations should be required to conduct regular, independent audits of their financial practices to ensure accountability and prevent mismanagement.

    Equity and inclusion are equally important. Gender disparities must be addressed through education and advocacy, fostering an environment where all residents feel respected and empowered to participate in governance. Initiatives such as leadership training programs for all board members, especially underrepresented groups, can help diversify boards and promote more equitable decision-making processes.

    By implementing these changes, Hawai‘i can establish a more efficient, equitable, and transparent system for managing its condominiums and community associations. These reforms will benefit residents and contribute to the long-term sustainability of these communities. In a state where shared housing plays such a vital role, creating fair and functional governance structures is essential for maintaining harmony and trust.

    Proactive measures will ensure that these communities thrive, not just as living spaces, but as integral parts of the Aloha State’s social and economic fabric.

    REVERE & ASSOCIATES
    970 Kealaolu Ave., Honolulu, HI 96816
    808-791-9550
    officemanager@revereandassociates.com
    revereandassociates.com

    Part 2 of this two-part series continues navigation of the challenges that can be found in the complex world of condominium law and how to pave the way for reform. Governance Gone Wrong Several recent incidents illustrate the challenges facing Hawai‘i’s community associations. On Hawai‘i Island, a condominium board began repairing common area la¯nai structures…

  • Having a Child

    Bringing a baby into this world is one of life’s greatest joys. Along with this joy comes responsibility and concern for the raising of this child. The preparation for having a child and raising a child is vast — finding a child seat for the car, diapers, interviewing pediatricians, childcare, safe-proofing the home and schooling, etc. And then late at night, the anxiety-inducing question comes up: “What if I’m not here for my child?”

    Guardianship: Should you pass when your child is a minor, the person who will take over raising your child is called the guardian. A guardian can be appointed in your last will and testament. This person serves as guardian until your child reaches the age of majority, which is 18 in Hawai‘i. The guardian would not be in direct control over money and assets; rather, the guardian’s main purpose is to assume the role of parent to raise the child.

    When choosing a guardian, you want to consider the following: Do you trust this person? Is this person available and able? Is this person willing? And is this person related to or married to someone who can negatively impact this person’s ability to raise your child?

    Choose carefully and thoughtfully.

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

    Bringing a baby into this world is one of life’s greatest joys. Along with this joy comes responsibility and concern for the raising of this child. The preparation for having a child and raising a child is vast — finding a child seat for the car, diapers, interviewing pediatricians, childcare, safe-proofing the home and schooling,…

  • One Trust or Two?

    Should a married couple create one trust or two? To some extent, it comes down to a matter of preference. Some couples see their stuff as belonging to both of them, while others differentiate between one spouse’s stuff and the other’s. Differentiation might be important if one spouse has children from a prior marriage, and the preference is to have the stuff that one spouse brought into the marriage going to that spouse’s descendants. Another practical reason for using separate trusts is that the trust of the first spouse to die can be designed to provide heightened creditor protection for the surviving spouse.

    If both spouses want the survivor spouse to have unlimited control over their combined assets after one of them dies, one trust will work. However, unlimited control means that the survivor can leave their combined assets to his or her next spouse, or the next spouse’s children (to the exclusion of the original couple’s children). This is not rare. But special rules can be built into their rule books to make sure that their stuff can be used for the two of them for as long as both live, and then for the survivor for his or her lifetime, and then each spouse’s stuff goes where he or she wants, irrespective of the wishes of the survivor.

    Your trusted advisors can help you choose what will work best for you and your ‘ohana.

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

    Should a married couple create one trust or two? To some extent, it comes down to a matter of preference. Some couples see their stuff as belonging to both of them, while others differentiate between one spouse’s stuff and the other’s. Differentiation might be important if one spouse has children from a prior marriage, and…

  • Test Drive Your Retirement Plan

    Two emotions are common for those who are nearing retirement — excitement and fear. Leaving the working world behind can feel empowering; however, apprehension about entering a new life stage may also creep in. If you’re nearing retirement, you’ve likely taken steps to prepare financially for the future. But there’s one important thing you might not have considered adding to your pre-retirement checklist — a practice run. Test driving aspects of your plan before you’re actually in retirement can help provide a sense of security.

    What does your ideal retirement look like? Deciding how to spend your time (and your money) in retirement is not always an easy. As we age, our interests, hobbies and relationships change. What you may consider your “ideal” retirement when you’re 55 may not be the same as when you’re 65, which can make it hard to plan accurately for retirement. Consider sitting down with your spouse or family members to explore how aging and future milestones may alter your retirement. Your financial advisor can help you make a plan that aligns your ideal retirement with your financial situation.

    Test drive your retirement lifestyle. Many people pledge a significant amount of savings towards a particular lifestyle in retirement — a home in another part of the country or an annual trip abroad. Problems can arise if you have made a financial commitment to a certain lifestyle but change your mind later. It’s better to understand the potential implications of altering your plan before you actually retire. For example, if your retirement plan includes a big move to a new location, you may benefit from a practice run before making the relocation permanent. Be prudent and build some flexibility into your plan to avoid unintended consequences.

    Simulate your retirement expenses. The idea that your cash flow no longer comes from a reliable paycheck can come as a shock — even to those who are well prepared for this change.

    One idea to accomplish a sense of financial security is to run two accounts for a certain period of time. Through one account, manage all of your household and lifestyle expenses that you expect during retirement — food, clothing, shelter, utilities, taxes and insurance — as well as “nice-to-have” items like dining out and traveling, etc. You may have to estimate or inflate your lifestyle expenses for retirement as they could rise when you have more free time.

    Through the second account, manage all of your expenses that are expected to end in retirement — principal and interest on a mortgage payment (if your home will be paid off), car payments, college costs for your kids and contributions to retirement plans.

    The best way to get a handle on these expenses is to experience them while you’re still working. Take that trip to Europe before retirement. If the cost is different than expected, make adjustments to your financial projections to reflect reality.

    Perfecting life in retirement. A little practice can help ease emotional and financial concerns when making the jump into retirement. Consider working with a financial advisor who can help you determine a budget and a retirement income plan that fits your needs and desires.

    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.

    Two emotions are common for those who are nearing retirement — excitement and fear. Leaving the working world behind can feel empowering; however, apprehension about entering a new life stage may also creep in. If you’re nearing retirement, you’ve likely taken steps to prepare financially for the future. But there’s one important thing you might…

  • Do You Need a Trust?

    Do I need a trust?” This is a common question I am asked when meeting with a client who is unfamiliar to estate planning. My usual response is, “It depends.” It depends on the client’s intentions or wishes, the client’s goals and concerns, the types of assets the client has, the age/maturity of client’s beneficiaries and whether there is a high risk of conflict.

    Generally, a trust is beneficial for anyone who owns real property, has liquid assets of cumulative value of $100K or more and growing, has children or beneficiaries, has children or beneficiaries who have disabilities or are minors and/or children or beneficiaries who are not mature or responsible.

    A trust is necessary for anyone who wants to prepare for incapacity, ensure a smooth transition of wealth, avoid probate, reduce conflict between the beneficiaries and reduce potential estate taxes.

    A trust is a very important and flexible tool that can assist you throughout life and that extends through death.

    Please understand that there are many different types of trusts. For the purposes of this article, consider revocable trusts or passthrough trusts, generally. You will want to meet with an estate planning attorney to see if a trust is suitable for you.

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

    Do I need a trust?” This is a common question I am asked when meeting with a client who is unfamiliar to estate planning. My usual response is, “It depends.” It depends on the client’s intentions or wishes, the client’s goals and concerns, the types of assets the client has, the age/maturity of client’s beneficiaries…

  • The Importance of Funding Your Trust

    Your revocable living trust (RLT) is a vehicle to deliver your assets to your beneficiaries — including you, if you become incapacitated. Think of your RLT as a little red wagon. In order for your wagon to do its job, you must load it up with your stuff. Anything you do not put into your wagon may not reach your intended beneficiaries without being subjected to an expensive, time-consuming public court proceeding.

    If the proceeding is required in order to allow your assets to be spent on you while you are incapacitated, it is called a “conservatorship.” If the proceeding is required in order to allow your loved ones to receive their inheritances, it is called a “probate.” Either way, going to court can be costly and take a long time. Court proceedings can also draw unwanted attention.

    You can spare yourself and your loved ones from having to go to court by transferring (called “funding”) all of your stuff into your RLT.

    There are a few assets (most notably, life insurance policies, annuities and retirement plans), that do not need to be transferred into your RLT during your lifetime. Often, the most effective way of transferring these kinds of assets is through beneficiary designations. Another item you might not want to put into your RLT is your automobile, but you should discuss it with your attorney.

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

    Your revocable living trust (RLT) is a vehicle to deliver your assets to your beneficiaries — including you, if you become incapacitated. Think of your RLT as a little red wagon. In order for your wagon to do its job, you must load it up with your stuff. Anything you do not put into your…