Category: Wisdoms

A Wise Estate Plan Includes the ‘Whys’

Estate-planning attorneys offer three types of estate plans: the one-size-fits-all, default “state plan;” the standard “black and white” plan; or the “meaningful” estate plan.

If you do nothing, the State of Hawai‘i has the Guardianship and Probate Court, which is a plan for each Hawai‘i resident upon incapacity and death. The state also has the Table of Consanguinity, listing your beneficiaries — to decide who will be in charge of handling your estate.

The standard “black and white” estate plan carefully crafts legal documents, while focusing on avoiding probate and minimizing taxes. Most often, these plans resemble every other estate plan, with the lawyers focused mainly on the “form” of the plan.

People may believe that because they consulted a lawyer, everything is complete and will not cause undue stress or conflict when they die.

But the sad fact is that there is more trust litigation occurring now than ever before and fractures in family relationships appear to be on the rise.

The simple reason? When we provide the foundation of the estate plan, we focus on the “how to” and diminish the “why,” meaning our intentions, feelings and hopes for our loved ones. In other words, our “voice.”

The “meaningful” estate plan incorporates the client’s own voice in the foundation of the estate plan. Statistics show that not only are the client’s choices honored and respected, family relationships are stronger and family fights are fewer.

It’s not too late to start a plan that reflects your “whys”— for you and your loved ones.

Stephen B. Yim, Attorney at Law
2054 S. Beretania St., Honolulu HI 96826

808-524-0251 | stephenyimestateplanning.com

Estate-planning attorneys offer three types of estate plans: the one-size-fits-all, default “state plan;” the standard “black and white” plan; or the “meaningful” estate plan. If you do nothing, the State of Hawai‘i has the Guardianship and Probate Court, which is a plan for each Hawai‘i resident upon incapacity and death. The state also has the…
Charitable Giving: Is It for You?

Public charities are not shy about asking us for money — they depend on our gifts to carry out their philanthropic purposes.

Deciding which charities to support can be a difficult task, because there are many worthy causes and most of us do not have unlimited bank accounts from which to draw.

Giving your retirement assets to your loved ones or to a nonprofit charity leads to many benefits. How will you divide your wealth?

The following are some suggestions for wise, charitable giving:

Do Your Homework

The good works of charities often overlap and some groups are more effective than others. To help you rate and compare established charities, visit websites such as www.charitynavigator.org and www.charitywatch.org. Know how much of your gift will go to charitable work versus administrative and fundraising overhead. Of course, running a charity costs money. Raising money also costs money. If these expenses exceed 25 percent of a charity’s revenue, you should ask why. If the charity cannot offer a good explanation, you may want to consider giving to other groups, instead.

Don’t Sell an Appreciated Asset for Cash

If you own Apple stock that you bought in 2006 for $10 per share, don’t sell it now at $150 per share to raise the cash for a charitable gift. You will be allowed an income tax deduction for your cash gift, but you also will be liable for capital gains tax on the difference between the $150 sale price of the stock and the $10 spent to buy that stock.

As a result, you will have less after-tax cash for the charity and your deduction will be limited to the amount of your gift. Instead, think about giving the stock to the charity and receive a larger deduction. The charity then can sell the stock and convert to cash.

The charity will not have to pay capital gains tax and you will receive a deduction for the full, fair-market value of the stock at the time you bestow the gift.

Give from Your Retirement Plan Assets

If you give retirement plan assets to your loved ones upon your death, they’ll likely pay income tax on those assets, resulting in less cash in their pockets. However, if you give those same assets to charity, there will be no income tax payable. To the extent that you can, name charities as beneficiaries of your retirement plan assets and use your non-taxable assets for making gifts to individuals.

If you have reached the age of 70-1/2 and have taken required minimum distributions (RMDs) from your retirement plan, you can give up to $100,000 of your annual RMD to charity. You will not get a deduction for your gift, but you will not have to pay income tax on the gifted portion of your RMD. This works out to be a “win-win” for you and the charity.

SCOTT MAKUAKANE, Counselor at Law
Focusing exclusively on estate planning and trust law.

www.est8planning.com
O‘ahu: 808-587-8227 | maku@est8planning.com

Public charities are not shy about asking us for money — they depend on our gifts to carry out their philanthropic purposes. Deciding which charities to support can be a difficult task, because there are many worthy causes and most of us do not have unlimited bank accounts from which to draw. The following are some suggestions…
Adjust Your Portfolio for a Soft Landing

Think about this analogy: When an airplane is preparing to land, it doesn’t descend 30,000 feet in a matter of seconds. Rather, it happens gradually. The pilot adjusts to the landscape and weather conditions to assure a soft landing.

In the years leading up to retirement, treat your investment portfolio in a similar manner. Prepare to protect your assets. Adjust as dictated by market and economic conditions to help assure a soft landing in retirement.

Adjusting your portfolio means taking steps to downshift as retirement nears, reducing some of the risks that may exist in your asset mix. While you were focused on building wealth in the years leading up to retirement, your focus should change as you approach the end of your working years. It’s important to protect your hard-earned wealth, while positioning your portfolio to generate your retirement paycheck.

Dealing with Unpredictability

Money invested in assets that vary in value — including stocks and bonds — are subject to periodic fluctuations. In prior years, you may have had time to ride out market turbulences and overcome short-term losses once markets recovered. But, if you wait until retirement to adjust your portfolio, you may be unpleasantly surprised by an untimely market downturn. This unpredictability could result in a “hard landing” for your portfolio, leaving you with less money in retirement, compared to your plans.

For example, a couple with $1 million saved for retirement may plan to withdraw $40,000 annually from that account (assuming they withdraw 4 percent of the principal value annually to sustain 25 years in retirement). If all the money was invested in stocks and the portfolio sustained a 25 percent decline prior to retirement, the value would drop to $750,000, leaving the couple with $30,000 a year. In contrast, if they had strategically positioned the portfolio prior to their retirement, they may have protected themselves from the market’s downturn.

A Gradual Process

The shift from wealth accumulation to income generation in your portfolio should happen over time. One approach is to gradually reduce your positions in assets that are subject to greater market volatility in the years leading up to retirement. That may mean reducing your portfolio’s exposure to stocks and increasing positions in fixed-income investments.

However, not all your money needs to be moved out of stocks, even in retirement. Equities historically have offered more growth potential than many other types of investments. Given today’s long-life expectancies, you want to be prepared for the likelihood that living costs will be higher 20 or 30 years from the time you begin retirement. For this reason, stocks may make sense for you. You may want to reduce your emphasis on investments that maximize capital appreciation and instead, emphasize stocks that tend to be less volatile and pay competitive dividends.

Other strategies may come into play, too, such as annuities that provide lifetime income in retirement, or alternative investments that can diversify your portfolio. A financial advisor can help you determine an appropriate strategy as you prepare for a smooth landing in retirement.

MICHAEL W. K. YEE, CFP
1585 Kapiolani Blvd., Ste. 1100, Honolulu HI 96814

808-952-1222, ext. 1240 | michael.w.yee@ampf.com

Michael W. K. Yee, CFP®, CFS®, CLTC, is a Financial Advisor, Certified Financial Planner ™ practitioner with Ameriprise Financial Services, Inc. in Honolulu, HI. He specializes in fee-based financial planning and asset management strategies and has been in practice for 30 years.

Investment advisory products and services are made available through Ameriprise Financial Services, Inc., a registered investment adviser.

Ameriprise Financial Services, Inc. Member FINRA and SIPC.

© 2017 Ameriprise Financial, Inc. All rights reserved. File #1822778

Think about this analogy: When an airplane is preparing to land, it doesn’t descend 30,000 feet in a matter of seconds. Rather, it happens gradually. The pilot adjusts to the landscape and weather conditions to assure a soft landing. In the years leading up to retirement, treat your investment portfolio in a similar manner. Prepare…
Part III: Sounds Too Good to Be True?

By Scott Spallina, Senior Deputy Prosecuting Attorney

In the last two issues of the magazine, I shared the lessons about elder abuse that I learned from the experiences of my mother-in-law, “Mary.”

As I have mentioned before, tragedies are the fuel for many a con and when my father-in-law had his stroke, my family nearly learned this lesson the hard way. Feeling overwhelmed by the magnitude of caring for another person 24/7 and the astounding costs of hiring care, Mary did what many people in her situation do — she tried to find ways to ease the burden and reduce care costs. For Mary, this meant hiring a caregiver from Craigslist. It is from this website — where anyone can post anything without any type of verification or assurances that the services or products advertised are legitimate — that Mary found a person claiming to be a caregiver. However, it was discovered that this person was a scam artist who would come into a home, slip and fall and sue the homeowner. Fortunately, this was discovered before any con was enacted.

At another time, my wife and I drove home to find Mary in her car patiently waiting to speak with her daughter. After a lengthy discussion, my wife came inside and revealed what was so important to Mary.

My mother-in-law was just informed that one could invest in the Iraqi currency (dinar) and make millions of dollars when their country became a world power. A “close friend” of hers gave her this information, but only if she promised to keep it a secret. Fortunately, she told my wife, who, in turn, told me. In less than 10 minutes, I found countless warnings on the internet from the FBI about the “dinar investing scam.” This was a typical scam — one that promised great wealth only if you kept it secret from those who could tell you the truth.

In recent years, Mary got involved in a scheme to get free homes from banks that were “acting unconstitutionally.” Once again, this scam began with a charismatic speaker holding information seminars about “our freedoms.” The speaker told attendees that banks don’t really own your house — therefore, you don’t have to pay your mortgage… Long story short, for two years, based on this erroneous information that cost thousands of dollars, my mother-in-law didn’t pay her mortgage. As a result, the bank started foreclosure proceedings against her. Mary was very close to losing her home.

Many victims of elder abuse are just like my mother-in-law — smart, loving and filled with a desire to care for their loved ones. They are not victims because of their greed; they are victims because they believed the promises that assured them that their loved ones would benefit and be taken care as a result of the bounty they acquired through special “opportunities.”

As is evidenced by my mother-in-law’s many experiences, if an opportunity sounds too good to be true, it is. Always seek advice from professionals and trusted loved ones about get-rich-quick money and property schemes. And never make an emotional decision that involves money.

To report suspected elder abuse, contact the Elder Abuse Unit at 808-768-7536 | ElderAbuse@honolulu.gov

By Scott Spallina, Senior Deputy Prosecuting Attorney In the last two issues of the magazine, I shared the lessons about elder abuse that I learned from the experiences of my mother-in-law, “Mary.” As I have mentioned before, tragedies are the fuel for many a con and when my father-in-law had his stroke, my family nearly…
The Importance of ‘The Conversation’

By Stephen B. Yim, Attorney at Law

I often stare, somewhat embarrassed, at my creation of legal documents on behalf of my clients — especially after I explain my role — to clearly speak clients’ intentions at a time when they can no longer speak. Inevitably, the black and white legal documentation looks nothing like what my clients expressed to me as their most important hopes, wishes and goals.

Lawyers often believe that the form is most important — that somehow the clarity of the written legal word will communicate clients’ heartfelt wishes. However, no matter how artfully written, the form cannot stand alone in transferring intention. The written word is a static, stable, constant form of communication. This might work in and of itself if expressing a non-changing, fixed element, such as a mathematical constant. However, we live our lives in process, change, multi-dimension, complexity and emotion.

The legal documents we prepare do serve an important functional purpose. They explain who, how, when and what to do. Alone, they don’t express the meaning and intention underlying the plan. “The Conversation” provides the meaning — the “why”— and builds empathy and a deep understanding of the maker’s intentions.

Research shows that more than 70 percent of estate plans fail; failing defined as intentions not being honored. Research also bears out that process-oriented conversation provides the “solution.” When families actively engage in conversation, this failure rate decreases considerably.

Family meetings are an integral part of the process, so engage in “The Conversation”— soon.

Stephen B. Yim, Attorney at Law
2054 S. Beretania St., Honolulu HI 96826

808-524-0251 | stephenyimestateplanning.com

By Stephen B. Yim, Attorney at Law I often stare, somewhat embarrassed, at my creation of legal documents on behalf of my clients — especially after I explain my role — to clearly speak clients’ intentions at a time when they can no longer speak. Inevitably, the black and white legal documentation looks nothing like what my clients expressed…
A Recipe for Family Disaster
by Scott A. Makuakane, Counselor at Law, Est8Planning Counsel LLLC

Ingredients

1 part No estate plan established

1 part No family discussion

Directions

Mix vigorously, bringing it to a boil. Add unexpected ingredients to totally complicate things…

Serves an entire family… to its end.

A recent survey conducted by Chicago-based BMO Wealth Management confirmed that most Americans do not have estate plans, and those who do, do not discuss them with their loved ones. For a variety of reasons, both of these facts generate many avoidable problems that undermine family harmony.

According to the BMO survey, 52 percent of Americans do not have a will, much less a revocable living trust-based estate plan. Thus, most families must grapple with things like court proceedings and uncertainty about what to do when a loved one dies or becomes incapacitated. The survey also found that many of the people who do have estate plans do not discuss them with their children or other family members. This can result in surprises that erupt into family battles.

One of the most significant findings of the survey was that 40 percent of the time, beneficiaries feel that their parents’ estate plans were unfair. And when children believe that their parents’ estate plans are unfair, you have the basic ingredients for a fight that will only serve to enrich a small army of lawyers.

Avoiding litigation between your children after you are gone can be as simple as having an estate plan and then discussing your plan with them. If your children understand the thinking behind your estate plan, they may not agree with it, but they will be less likely to challenge it after you are gone.

Often, having a family meeting about your estate plan facilitated by an experienced mediator can bring potential problems to light and also resolve them, thereby avoiding future conflict. There are many organizations and qualified mediators who can assist in this process. One organization is The Mediation Center of the Pacific (www.mediatehawaii.org), which provides “high-quality mediation and dispute resolution services that are affordable and accessible” (see Generations Magazine’s Apr/May 2017 issue).

So, remember that having an estate plan will be a tremendous help to your loved ones as life’s inevitable transitions occur. Making sure that your family understands and supports your plan will stem bad feelings and future legal battles.

SCOTT MAKUAKANE, Counselor at Law
Focusing exclusively on estate planning and trust law.

www.est8planning.com
O‘ahu: 808-587-8227 | maku@est8planning.com
by Scott A. Makuakane, Counselor at Law, Est8Planning Counsel LLLC Ingredients 1 part No estate plan established 1 part No family discussion Directions Mix vigorously, bringing it to a boil. Add unexpected ingredients to totally complicate things… Serves an entire family… to its end. A recent survey conducted by Chicago-based BMO Wealth Management confirmed that…
Don’t Wait to Save for Retirement

By Michael W. K. Yee, Financial Advisor and Certified Financial Planner

Saving for — and even thinking about retirement can be overwhelming. While it’s natural to worry about your financial future, be careful not to let preconceived notions prevent you from actively saving for tomorrow. If you find yourself having one of the following doubts, consider reframing your thinking. A perspective shift may be what you need to get on the right track.

◆ “Retirement is a long way off.” It’s easy to get wrapped up in your current financial obligations, telling yourself that you’ll prioritize your retirement next year. However, like many worthy aspirations, a sound retirement plan takes time and discipline to achieve. If your golden years seem far away, remind yourself of the power of saving early. Time allows you to tackle your retirement goals in smaller increments with the potential for compounded growth. Retirement will likely come faster than you think and your future self will thank you for planning ahead.

◆ “I’ll prioritize retirement after paying for my child’s education.” With the rising costs of college, it’s understandable and even necessary for you to help your child obtain a quality education. However, your nest egg should be the top priority. Once you reach retirement, you have limited options if your savings come up short. Alternatively, your child can secure financial aid to pay for college, including scholarships, grants, work-study programs and loans. You simply don’t have options like these to help fund your retirement. While retirement deserves the most attention, you can devise a strategy to simultaneously save for both important goals.

◆ “My retirement dreams are too expensive.” If your dreams of traveling through Europe or starting a new hobby seem expensive, give yourself a reality check. Start by comparing your dreams to your current nest egg. Calculate the amount you need to maintain your lifestyle, cover potential unexpected expenses (such as healthcare) and achieve your retirement bucket list. If your savings come up short, create a plan to fill the gap. Lofty dreams will force yourself to ask the tough question: “Do I want to adjust my current lifestyle to achieve this retirement dream?”

◆ “I won’t be able to retire when I want.” It’s true that more Americans are working longer and delaying retirement. Some simply prefer to remain active contributors in the workforce, but many others are forced to postpone retirement until they accumulate sufficient resources to retire comfortably. If you dream of retiring early, carefully assess whether your nest egg is sustainable over several decades. You’ll want to make sure the money you withdraw early in retirement doesn’t put you at risk of outliving your assets.

◆ “I can’t afford to save.” If this phrase comes to mind, give your self-talk a flip. Instead, think “I can’t afford not to save.” Setting aside even a small amount of money each month can make a big difference, as your assets can grow with the benefit of compounding. Consider increasing your monthly contribution to bulk up your nest egg.

◆ “My family will help me.” Perhaps you’re expecting a generous inheritance or hoping that your adult kids will provide a financial cushion if you experience an unexpected expense. Regardless of who you believe may come to your aid, it’s best to take your financial security into your own hands. Life is full of uncertainties that could impact bank accounts for both you and your family members. Knowing your future is under financial control may give your family peace of mind.

It’s not too late to correct misconceptions about the importance of saving for retirement. Consider working with a financial advisor to create a plan for your future. Together you can determine your savings targets and explore a wide range of strategies to meet your financial goals. It’s time to talk yourself back in to retirement.

MICHAEL W. K. YEE, CFP
1585 Kapiolani Blvd., Ste. 1100, Honolulu HI 96814
808-952-1222, ext. 1240 | michael.w.yee@ampf.com

Michael W. K. Yee, CFP®, CFS®, CLTC, is a Financial Advisor, Certified Financial Planner ™ practitioner with Ameriprise Financial Services, Inc. in Honolulu, HI. He specializes in fee-based financial planning and asset management strategies and has been in practice for 30 years.
Investment advisory products and services are made available through Ameriprise Financial Services, Inc., a registered investment adviser.
Ameriprise Financial Services, Inc. Member FINRA and SIPC.
© 2017 Ameriprise Financial, Inc. All rights reserved. File #1753773

By Michael W. K. Yee, Financial Advisor and Certified Financial Planner Saving for — and even thinking about retirement can be overwhelming. While it’s natural to worry about your financial future, be careful not to let preconceived notions prevent you from actively saving for tomorrow. If you find yourself having one of the following doubts, consider reframing…
Part II: Beware of Pretty Packages

by Scott Spallina, Senior Deputy Prosecuting Attorney

In the last issue, I covered the lessons my mother-in-law, “Mary,” taught me through her encounters with various scam artists she has met over the years. Unfortunately, those incidents were only the tip of the iceberg.

Shortly after Mary’s run-in with the Y2K hucksters, she met a charismatic man who advertised seminars that would “make money for attendees.” His scheme was simple — don’t pay your taxes. He claimed paying taxes was optional; nowhere in the tax code did it say you had to pay. Despite my advice, she supported this man, went to his criminal trial in federal court when he was indicted and was there when he was eventually sentenced to prison. Naturally, he claimed his conviction was the government’s attempt to stop him from “exposing the truth.” The only truth he did expose, however, was that people will believe anything — if its packaged well.

After this man’s incarceration, my wife and I discovered that we were expecting a baby. Mary wanted to insure financial stability for my growing family. She did this by investing in a local company that was going to create a website bigger than Ebay or Amazon — according to the owner. She was encouraged to bring in more people wanting to invest thousands of dollars to get in on the ground floor of this no-lose, get-rich opportunity. The contract they had her sign obligated her to pay monthly fees for their “trainings.” Although nothing else was promised in writing, verbal promises made by the owner during his speeches were plentiful. Articulate, passionate and good looking, he had hotel ballrooms filled with people applauding his high-energy speeches. Then, the government came and closed him down for illegal business practices. I suspect this was all some sort of pyramid scheme disguised as an investment opportunity. It was probably around this time I first heard the phrase, “A pretty package can hide toxic contents.”

Another time, my in-laws were fixing up a rental property and hired a cash-only repairman. They knew a friend of a friend who was unlicensed but known to do side jobs. They gave him money; he did not do the work (no contract was written up). When they hunted him down (literally) for the return of the money, he made excuses as to why he didn’t do the job but couldn’t return the cash. Because of his relationship with the family, tangential as it was, the breach of trust was more painful than that from the slick-talking con artists previously encountered.

It was this experience that led me to join a working group with the state Department of Commerce and Consumer Affairs (DCCA) to write legislation making it a felony crime for an unlicensed contractor to accept money for work.

In the next issue, I will conclude this series by sharing Mary’s encounter with a domestic terrorist group and how she invited a con artist into her home — literally.

_______________

To report suspected elder abuse, contact the Elder Abuse Unit at 808-768-7536 | ElderAbuse@honolulu.gov

In the last issue, I covered the lessons my mother-in-law, “Mary,” taught me through her encounters with various scam artists she has met over the years. Unfortunately, those incidents were only the tip of the iceberg.

Reflecting on What is Important

by Stephen B. Yim, Attorney at Law

I had been preparing to write about the importance of conversation in estate planning while watching a documentary on HBO called Cries From Syria. In the midst of this heart-wrenching story about the Syrian situation—a girl, who could not have been older than 8 or 9—facing death from starvation and preparing her will. It had nothing to do with money. Her will expressed the basic foundational needs each of us as human beings share — love and caring of family, food and shelter. This experience moved me to share her will with you.

For me, as much as I felt a deep sadness over the plight of the Syrian people, I could not help but feel gratitude for all that I have, and guilt for ever feeling a “need” for more. I hope this will from a young Syrian girl moves you as it did me.

“I felt that I was going to die. Because of that, I wrote my will. This is my will. I ask you, my mother, to remember me. Prepare my bed every night and remember my continuous smiles. And you, my sister, tell my friends that I died from starvation. And you, my brother, remember when you and I were hungry. Oh angel of death, go ahead and catch my soul so that I can eat in paradise. Don’t worry family, I will eat for you in paradise as much as I can.” N

Stephen B. Yim, Attorney at Law
2054 S. Beretania St., Honolulu HI 96826

808-524-0251 | stephenyimestateplanning.com

I had been preparing to write about the importance of conversation in estate planning while watching a documentary on HBO called Cries From Syria. In the midst of this heart-wrenching story about the Syrian situation—a girl, who could not have been older than 8 or 9—facing death from starvation and preparing her will. It had…

Essential Dialogue About Family Wealth

by Michael W. K. Yee, Financial Advisor and Certified Financial Planner

According to the Family Wealth Checkup study by Ameriprise Financial, there’s a correlation between financial confidence and communication. While many families are discussing financial issues, they tend to shy away from topics like inheritance and estate planning, leaving some with unrealistic expectations. But family conversations about finances lay the foundation for a more secure financial future for the people closest to you.

Tips for Family Discussions About Finances

Don’t wait for a tragedy to bring up the topic. Nine in 10 adult children say a life-altering event triggered a financial talk with their parents. It’s best to have these conversations when all the important players in your estate plan can participate and communicate. With time on your side, you can cover topics thoroughly and have leeway to get the proper documents in place.

Families who have opened this dialogue report that it went much smoother than anticipated — conversations were straightforward and relaxed as opposed to awkward or difficult.

Schedule the conversation; make it a priority. Rather than just hope a conversation will happen, let each family member know ahead of time that you want to talk. Complex estates may require multiple discussions, so schedule a date to continue as needed. After your initial discussion, keep family members up-to-date about changes.

Share your agenda ahead of time. Consider starting the conversation by sharing your financial goals and values. Other topics on the agenda may include managing current finances, healthcare costs and legacy planning.

Manage expectations. It’s important to disclose enough detail so that your family can set appropriate expectations. If part of your legacy plan includes leaving an inheritance, consider letting your family know whether it’s an amount large enough to help fund your grandchildren’s education or closer to a down payment on a car. Only 21 percent of parents have told their kids how much they can expect to receive.

Create or update your estate plan. Pair your conversations with a comprehensive estate plan to prevent rifts that can happen when financial wishes are not clearly documented. Your estate encompasses anything you own. Creating a plan that determines what happens to these assets and accounts — no matter the size of your estate.

If you already have a plan in place, update it to mirror the blueprint you’ve shared with your family and consider providing instructions in a healthcare directive in the event that you cannot act on your own behalf in the future.

Disclose locations of important documents. Prevent headaches that can slow down the settlement of your estate by providing instructions —
where you’ve stored the safety deposit key, bank accounts, stock certificates and digital assets, etc. Ensure that your family has contact information of the professionals (lawyer, estate planner, tax, financial advisor) who are helping you plan.

Work with a financial professional. If you experience conflict in your family discussions or want some help navigating difficult topics, consider working with a neutral third party, such as a financial advisor. A financial professional can help family members understand your collective financial picture and can facilitate the transition of wealth from one generation to the next.

Ongoing dialogue about estate topics with family members can bring you closer together and pave the way for a smooth transfer of wealth —
when the day comes.

According to the Family Wealth Checkup study by Ameriprise Financial, there’s a correlation between financial confidence and communication. While many families are discussing financial issues, they tend to shy away from topics like inheritance and estate planning, leaving some with unrealistic expectations.
Estate Planning From the Inside Out

I’ve noticed that many people approach estate planning from the outside in, rather from the insideout. For example, many people want to “avoid probate” or “minimize tax” as a primary goal — good goals, for sure. If we stop there, we miss the opportunity to explore the deeper meaning underlying these goals, such as ensuring that we provide our loved ones as much as we can with assets to supplement their lives, and provide each of them the opportunity to grow, and develop and enjoy the most meaningful life possible.

Take the family home, for example. Often, people want to make sure that their children “get the house equally.” Without exploring underlying values and prioritizing concerns, we may not get to the deeper meaning such as: that they love their children equally; that they want to ensure that each of their children has a place to live; and that they want their children to get along and support each other. In prioritizing these concerns, they find that their children getting along with each other is the most important hope or goal of all.

Understanding this, the attorney can add provisions to ensure that the children don’t fight over the family home.

When we take the time to explore our values with the guidance of a skilled estate planner, we can mirror and reflect our deepest values, and can gain true peace of mind to know that our intentions will be clearly spoken — when we can no longer speak.

STEPHEN B. YIM, ATTORNEY AT LAW
2054 S. Beretania St., Honolulu HI 96826
808-524-0251 | stephenyimestateplanning.com

I’ve noticed that many people approach estate planning from the outside in, rather from the insideout. For example, many people want to “avoid probate” or “minimize tax” as a primary goal — good goals, for sure. If we stop there, we miss the opportunity to explore the deeper meaning underlying these goals, such as ensuring…
My Elder Abuse Teacher

It wasn’t the mainland trainings or the thousands of cases I have handled that have given me the greatest insights into elder abuse. No. The best “teacher” I have had regarding dealing with the complexity and emotional stress of dealing with these crimes has been through helping my mother-in-law over the years. “Mary” (not her real name because my wife would be upset if I used it) is a sweet, trusting lady who seems to have a bright neon target on her forehead inviting scam artists to try and take advantage of her. After each encounter or near miss with a fraudster, I gained a deeper understanding of elder abuse.

One lesson my mother-in-law taught me was to beware of “friendly strangers.” There have been multiple instances of strangers approaching Mary inside a big-box store, following her out to her car, trying to engage her in small talk and asking if they could help her. Fortunately, Mary can’t tolerate dialogue that is not related to stopping land development or fluoridation of our drinking water. Her impatience to inane small talk and her stubbornness in accepting help from anyone has saved her and our family untold hardships by closing the door on potential encounters that could have developed into exploitation. If more seniors turned off the aloha (sometimes, being downright rude) to suspiciously friendly strangers, the many crimes I have prosecuted would never have happened.

The scam artists who have successfully taken advantage of my mother-in-law, however, have not been strangers who have approached her, but swindlers she unknowingly invited into her life.

Upon retiring from her job, Mary wanted to use her time to help family and friends. Unfortunately, this was around the same time people were talking about Y2K — the year was going to change from 1999 to 2000. Some thought the event was going to send civilization back into the Stone Age.

Mary met people who were “planning” for this much-talked-about apocalypse and were concerned enough about her to sell her end-of-theworld- proof supplies and advise her to cash in annuities and sell stocks. With the anxiety many people felt about this event supported by media hype, cons flourished. Countless people like Mary who were concerned about the safety and wellbeing of their loved-ones spent a lot of money preparing for a calamity that never happened.

What this taught me early on was that there are people who will use existing fears or create uneasiness themselves in order to cause people to make emotional decisions with their money. Similar to going into a car lot without doing research on the make and model you want, you allow the salesman the ability to ply you with emotional imagery of you behind a wheel of a vehicle not necessarily suited to your needs or budget. Spending money based on emotion rarely turn out well.

In the next issue, I will review my mother-inlaw’s encounters with a convicted felon, a disbarred lawyer and a group being watched by none other than the FBI.

To report suspected elder abuse, contact the Elder Abuse
Unit at 808-768-7536 | ElderAbuse@honolulu.gov

It wasn’t the mainland trainings or the thousands of cases I have handled that have given me the greatest insights into elder abuse. No. The best “teacher” I have had regarding dealing with the complexity and emotional stress of dealing with these crimes has been through helping my mother-in-law over the years. “Mary” (not her…