Category: Wisdoms

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…
What Does It Mean to Be a Trustee?

A trustee is what the law calls a fiduciary. A fiduciary is a person who is responsible for taking care of something that belongs to someone else. Under the law, fiduciaries owe legally enforceable duties to the beneficiaries — the people or charities on whose behalf they handle assets.

A trust is a legal relationship that results when a person (often called a trustmaker, a settlor or a grantor) makes an agreement with a trustee to handle assets for the benefit of one or more beneficiaries. The agreement is normally set out in a written document — the trust instrument or the trust agreement. The first and foremost duty of any trustee is to read, understand and faithfully follow the exact terms of the trust instrument.

Once the trust agreement is made, the trustmaker transfers property to the trustee. The trustee actually becomes the legal owner of the property. However, the “real” owners of the property are the beneficiaries, who are said to be the equitable or beneficial owners; they are the ones who are supposed to benefit from the property.

A trust can have more than one trustee at a time. Each co-trustee must decide for himself or herself how best to carry out his or her fiduciary duties. Beware that a co-trustee can be held responsible for another co-trustee’s breach of a fiduciary duty. Thus, it is important that all cotrustees pay close attention to everything that is done in the administration of the trust. Any question or problem should be communicated to the other co-trustee or co-trustees immediately. Generally, when there are two co-trustees, both must agree on all matters of trust administration. When there are three or more co-trustees, the majority rules.

In order to minimize the chances of being held responsible for someone else’s poor judgment or breach of duty, a cotrustee should be sure to make a written record of any points of disagreement about trust business. In extreme cases, a co-trustee may be required to blow the whistle on other co-trustees’ activities.

If you ever have questions about what to do as trustee, you should seek appropriate advice immediately. You should not hesitate to consult your lawyer, your CPA or other advisors.

The fact that you have been named as a successor trustee in someone’s trust instrument does not obligate you to accept that position. You must consider your decision to accept the job of trustee very carefully.

Once you accept the position, you accept all that goes with it. It is a position of great honor that involves great responsibility.

SCOTT MAKUAKANE, Counselor at Law
Focusing exclusively on estate planning and trust law.
www.est8planning.com
O‘ahu: 808-587-8227 | maku@est8planning.com

A trustee is what the law calls a fiduciary. A fiduciary is a person who is responsible for taking care of something that belongs to someone else. Under the law, fiduciaries owe legally enforceable duties to the beneficiaries — the people or charities on whose behalf they handle assets. A trust is a legal relationship…
Creating a Charitable Giving Strategy

It’s not too late to align your spending with your priorities. If charitable giving is an important part of your budget, take a step back and reevaluate your giving strategy.

There are a myriad of causes and organizations you can support, which can leave even the bestintentioned philanthropist confused, frustrated and overwhelmed.

The following steps can help ensure that your money is being used effectively and efficiently by the organizations you choose to support.

STEP 1: Clarify your values and preferences.

Before you reach for your checkbook, ask yourself a few questions. What causes are important to you? Is there a particular demographic or group of people you would like to support? Would you prefer to give to a local, regional, national or global organization? As a donor, what do you hope to see in the organization’s leadership or structure?

The answers to these questions can help you make a list of charities that will allow you to align your financial resources with your personal values, making your donation even more meaningful.

STEP 2: Consider each organization’s mission.

Once you have determined which organizations meet your criteria, research each charity to make sure their programs, mission and goals match your expectations.

Consider meeting with an executive or local leader to hear about the charity’s strategy and its impact on the community first-hand. During the meeting, ask about the organization’s short- and long-term goals, as well as how it measures success. You want to be sure that the charity is making progress toward achieving its goals.

STEP 3: Investigate each charitable organization’s financial health.

Look into how each donation is used and what percentage of the money goes directly to the cause. Fundraising and administrative expenses help the charity do its work; however, you should be cautious about organizations with higher overhead costs. Ask the charity for a copy of its most recent annual report and Internal Revenue Service (IRS) Form 990. These forms outline the charity’s budget allocation and financial plans, and can provide you with insight into how your money is used to make the intended impact.

If you’d like an objective perspective on a charity’s financial health, fundraising practices, day-to-day efficiency and accountability standards, look at how watchdog groups evaluate the organization.

BBB Wise Giving Alliance (www.give.org), GuideStar (www.guidestar.org) and Charity Navigator (www.charitynavigator.org) are several national groups that offer unbiased evaluations.

STEP 4: Make giving part of your plan.

As you figure out your donation strategy, consider meeting with a financial planner or tax advisor who can help you select the most appropriate donation method for your financial situation. These professionals can also work with you to create a strategy for ongoing contributions or to make giving part of your legacy.

Keep in mind that there may be legal or tax considerations, depending on the amount and form of your donation (i.e., check, investment donation, etc.).

By taking the time to thoroughly evaluate charitable organizations, you’ll give yourself the peace of mind that your money is being used wisely, effectively and for the purposes you intended.

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, CRPC®, is a Financial Advisor,
Certified Financial Planner ™ practitioner with Ameriprise Financial Services Inc. in
Honolulu, Hawai‘i, with Na Ho’okele Financial Advisory Team, a financial advisory
practice of Ameriprise Financial Services Inc. He offers fee-based financial planning
and asset management strategies and has been in practice for 29 years.

Ameriprise Financial, Inc. and its affiliates do not offer tax advice. Consult your tax
adviser regarding your specific situation.
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 #1675019

It’s not too late to align your spending with your priorities. If charitable giving is an important part of your budget, take a step back and reevaluate your giving strategy. There are a myriad of causes and organizations you can support, which can leave even the bestintentioned philanthropist confused, frustrated and overwhelmed. The following steps…
‘Rocks in a Box’ & Other Crimes

Over the years, we’ve covered the devastating effects of fake lotteries that have resulted in Hawai‘i seniors losing millions of dollars (even their homes); the distressed relative scam (more commonly referred to as the “Grandma Scam”); sweetheart swindles/sham marriages; and the actions of adult children and caregivers who have stolen not only the life savings of their parents and patients, but also the trust of someone that never believed a loved one would steal from them. People should also be made aware of the following lesser-known scams.

With internet sites such as Craigslist and Letgo, one needs to be careful of an item advertised as new and “still in its original packaging.” The seller will say the item (usually a television or other electronic device, like an iPad) has never been opened and was purchased recently. When you go to buy it, the seller doesn’t want you to inspect it because “it will lose value if the box is opened.” Therefore, one may pay for a sealed box that may contain nicely wrapped rocks inside.

Another crime that uses deceit is the “diversion burglary.” When a homeowner responds to a knock on the door, he or she will be greeted by a friendly stranger with a story of need. Maybe their child needs to use the restroom, their car broke down and they need to go inside and use the phone or they may claim to be a long-lost relative who has been searching for them. These scam artists simply want to make it into the home, distract the victim and commit theft.

The “missed doctor’s appointment” scam surfaced again in Hawai‘i last year. A pleasantsounding lady called the victims and related that either they missed a doctor’s appointment made for them by their doctor or that their adult child missed their appointment. While they have the victim on the phone, they will ask for personal information “needed to update their medical records”— but in reality, to steal their identity.

Seniors who drive need to be cautious of scams. A friendly stranger may say he saw some type of mechanical problem with the elder’s car that the scammer just so happens to know how to fix. After some phony fiddling under the hood, the stranger will demand payment for his time.

Con artists rely on seniors to be trusting, willing to provide information and not question a too-good-to-be-true deal.

Don’t be afraid to say “no.” It is not being rude—it’s for your own protection.

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

Over the years, we’ve covered the devastating effects of fake lotteries that have resulted in Hawai‘i seniors losing millions of dollars (even their homes); the distressed relative scam (more commonly referred to as the “Grandma Scam”); sweetheart swindles/sham marriages; and the actions of adult children and caregivers who have stolen not only the life savings…
Capturing the Heart of an Estate Plan

The usual response I receive when I ask, “What brings you here?” during an initial meeting with clients, is, “To avoid probate and minimize taxes.” Avoiding probate and taxes are good goals, and easy to resolve.

The much more difficult — and much more meaningful work — is all relational. When we delve further into clients’ goals for estate planning, I have found that they want much more, especially concerning family. They want their children to get along, want them to know that they were loved, and they want their hard-earned wealth to be utilized appropriately and wisely.

Relational goals are long-lasting. By engaging the client in these kinds of discussions, we can make the estate planning experience so much more significant. Not addressing these concerns could result in long-term, negative effects on the client and the client’s family.

It is difficult for clients and their attorneys to get below the surface to address relational and emotional concerns. Staying above the surface with financial, legal and tax matters seems safer.

Discussions about relationships are risky and may elicit feelings of vulnerability. Avoiding them is easier but can leave devastating deep-rooted negative effects — sometimes for decades.

As attorneys, we are professional counselors. I believe we can not only help our clients by serving as catalysts for these types of conversations, but also feel that it is our duty to do so.

We need to reach beyond the superficial nature of taxes, probate and finances to capture and include the heart of an estate plan.

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

The usual response I receive when I ask, “What brings you here?” during an initial meeting with clients, is, “To avoid probate and minimize taxes.” Avoiding probate and taxes are good goals, and easy to resolve. The much more difficult — and much more meaningful work — is all relational. When we delve further into…
Make Your Giving Go Further

Technology has made all of our lives easier. Just by using a smartphone, you can talk to people all over the world, check the weather forecast or reserve a seat on a plane. The true power of the smartphone is how it combines a myriad of tools into a single, sleek device.

As you support your favorite charity, you might be interested in ways to increase your impact. By combining different giving tools together, you can multiply the difference you make when you give to a 501(c)(3) nonprofit charity. You may already be making annual gifts, but here are some ways your annual gifts may be combined with other opportunities to make your support go even further:

• You can endow your annual gifts in your will to ensure that your legacy of support continues.
• In addition to annual gifts, you can make a single gift to fund a charitable gift annuity. You will receive lifetime fixed payments and tax savings.
• Another way to help beyond your regular annual giving is with a charitable life estate. You can convey your home to your favorite charity, remain living there and receive tax benefits.

When you think about all of the tools available to you, you can do more than you might have thought possible. By adding an estate or life income gift to your annual giving, you can benefit from lifetime payments and tax savings.

If you would like to know more, call or email us to learn how we can help you combine your giving in a way that benefits you and supports your cause.

NATIONAL KIDNEY FOUNDATION OF HAWAII
808-589-5961 | diana@kidneyhi.org
For Planned Giving: www.kidneyhawaii.org
Main: www.kidneyhi.org | www.kidney.org

Technology has made all of our lives easier. Just by using a smartphone, you can talk to people all over the world, check the weather forecast or reserve a seat on a plane. The true power of the smartphone is how it combines a myriad of tools into a single, sleek device. As you support…
‘Test Drive’ Your Estate Plan

Kingdom Advisors founder Ron Blue takes an interesting approach to estate planning. He advocates lifetime giving as a way to assure that the objects of your bounty are worthy recipients of your wealth. This could play out a couple of different ways.

As Blue points out, there are three places your “stuff” can go after you die:

• Government, attorneys and other professional advisors by way of taxes and administration expenses;
• Loved ones
• Charity

A good estate plan will minimize the amount that is bled away in the first category. A really good estate plan will help to make sure that your intentions regarding your loved ones and your favorite charities are carried out, as well.

Giving assets outright to your loved ones is a way to give them full control over and responsibility for those assets. However, one of your intended beneficiaries could easily lose his or her inheritance as a result of a divorce, vehicle accident or bad business deal. And this could happen due to no personal fault of the beneficiary. For this reason, many estate plans include ongoing trusts that allow the beneficiaries to have as much control as they are able to handle, while at the same time insulating the trust assets from creditors and predators who might try to take those assets away.

The thing about leaving assets to your loved ones after you are gone is that you will have no idea how each of them will handle his or her inheritance. Your best guess during your lifetime could turn out to be wrong. So what about making gifts during your lifetime that will enable you to see how your intended beneficiaries handle their new-found wealth? This could be a great way to “test drive” your estate plan and determine how well it works while you are still able to make adjustments to it. If one beneficiary turns out to be a poor steward of your wealth, you can always redirect assets in your final estate plan to other beneficiaries, or provide greater restrictions on a spendthrift beneficiary’s control over your wealth.

The same principles apply to charitable gifts. Your favorite charity could turn out to be a poor manager of donated assets. It would be far better to find that out during your lifetime than to leave your loved ones regretting your philanthropic choices. If a charity does what you hope it will do with your gift, you can add to it upon your death. Not only that, but your gift may have far greater impact the earlier you make it. If, for example, you want to provide funding for scholarships so underprivileged children can go to college, the sooner you make your gift, the sooner a scholarship recipient will graduate from college, get launched in a career and turn around and “pay it forward,” as you have done.

As Ron Blue would say, you should consider “giving while you’re living so you’re knowing where it’s going.” It’s sound advice for anyone who prefers to test the water before diving in head first.

SCOTT MAKUAKANE, Counselor at Law
Focusing exclusively on estate planning and trust law.
Watch Scott’s TV show, Malama Kupuna
Sundays at 8:30 pm on KWHE, Oceanic Channel 11
www.est8planning.com
O‘ahu: 808-587-8227 | maku@est8planning.com

Kingdom Advisors founder Ron Blue takes an interesting approach to estate planning. He advocates lifetime giving as a way to assure that the objects of your bounty are worthy recipients of your wealth. This could play out a couple of different ways. As Blue points out, there are three places your “stuff” can go after…