Category: Wisdoms

  • Four Myths About Kidney Disease

    What do you know about kidney disease? Are you sure that what you heard is correct? Here are 4 common errors:

    Myth 1: Kidney disease is rare

    One in seven adults in Hawai‘i has kidney disease and one in two are at risk for the disease. High blood pressure, diabetes, a family history of kidney failure, and being over 60 are major risk factors. So is being Asian, Pacific Islander, African-American, Hispanic, or American Indian.

    Myth 2: You’ll know if you get kidney disease

    Most people who have kidney disease don’t know it, because the early stages of kidney disease do not usually produce any symptoms. To learn if you have kidney disease, get tested. Once you are diagnosed there are many steps you can take to reduce the progression of the disease.

    Myth 3: People at risk can’t do anything

    Not everyone at risk will get kidney disease. You can help protect your kidneys. Eat healthy, get regular exercise, control blood pressure and blood sugar, keep a healthy weight, quit smoking, and don’t overuse pain medications like ibuprofen.

    Myth 4: Dialysis is the only treatment

    Early stage kidney disease is usually managed with medication, exercise, and diet. Some people diagnosed early can slow progression and enjoy a normal lifestyle. Dialysis or kidney transplant is only needed if kidney disease progresses to kidney failure.

    National Kidney Foundation of Hawaii
    808-589-5976 | jeff@kidneyhi.org
    For Planned Giving: www.kidneyhawaii.org
    Main: www.kidneyhi.org | www.kidney.org

    What do you know about kidney disease? Are you sure that what you heard is correct? Here are 4 common errors: Myth 1: Kidney disease is rare One in seven adults in Hawai‘i has kidney disease and one in two are at risk for the disease. High blood pressure, diabetes, a family history of kidney…

  • Lost in Translation

    Did you play the game “grape vine” as a child? You whisper something to someone who whispers it to another, until the last person gets the message. The last person says the message out loud. At best, it is a very garbled version of the original message.

    Think about estate planning. People tell their attorney the underlying reasons for wanting an estate plan. They share concerns for their loved ones and hopes for their future.

    The attorney then translates these heartfelt wishes and intentions into legal language and writes an estate plan. It’s like speaking English to someone and asking them to write down the conversation in French. However, the translator only knows scientific French words. He gets the jist of the conversation, but fails to translate the full meaning and intent. Some of the meaning and intent is lost.

    After the client dies, the trustee and beneficiaries try to understand the purpose, reasons, and meaning of the estate plan, only to find hard-tointerpret legal documents.

    This grapevine way of making one’s estate plan leads to misunderstanding, lack of clarity, and different interpretations can lead to fractured family relationships. The only people who can clear up any misunderstanding and define their values and meaning are gone — often estates become “lost in translation” experiences.

    We need to get away from the grapevine method of estate planning and start having family meetings to relay our intentions clearly while everyone is here — to ensure a successful estate plan.

    Stephen B. Yim, Attorney at Law

    2054 S. Beretania St., Honolulu

    808-524-0251 | stephenyimestateplanning.com

    Did you play the game “grape vine” as a child? You whisper something to someone who whispers it to another, until the last person gets the message. The last person says the message out loud. At best, it is a very garbled version of the original message. Think about estate planning. People tell their attorney…

  • For Love … of Money: Sham Marriages

    When it comes to love and relationships, we are particularly protective of our elders. We scrutinize new companions who come into their lives; when our kupuna decide to marry, we get concerned about the new partner’s intentions.

    Stephanie (not her real name) called my office, she was panicked. She just discovered a life her father had kept secret from her; he married a woman 30 years his junior recently; did not live with her; paid her rent and car payments; and that they met at a bar she worked. This upset Stephanie so much that she could only envision her father as being a helpless victim to a predatory vixen, she was calling to see if this new wife could be arrested for financial exploitation.

    Stephanie did not initially see the fact that her father was a competent, lonely, older man who lost his wife a couple of years ago and liked the attention given him by this bar hostess. Although this May/December relationship greatly benefited the wife financially, Stephanie’s father consciously knew the true nature of the relationship, and was more than willing to continue this marriage. After speaking to Stephanie, she understood that because her father wanted the marriage as it was, a crime did not occur, and there were no grounds for prosecution.

    Our office has been receiving more calls like this from family members or friends who are worried that a senior — seemingly competent in all other aspects of their life — are now an unwitting dupes for a gold digger.

    Although these relationships have the telltale signs of financial abuse, if one were to ask the “victims” if they feel exploited — many would reply just the opposite.

    Having said this, however, does not mean that all such unions should be viewed as a mutually-benefiting relationship for both spouses. There are, in fact relationships where these sham marriages can turn into abuse, harming the older spouse not only financially, but physically if the senior suffers from disabilities that are not being addressed by the spouse.

    In trying to determine whether or not a marriage is a case of love or is harmful to the older partner, one should be aware of the following warning signs:

    • Isolation: When someone is attempting to execute a scam, the less people involved the better. It is common for predators to isolate their victims from their families and loved ones. Be involved in the lives of your Kupuna and check in often.
    • Loneliness: Those who are potential victims of sham marriages are often lonely and seeking companionship. This makes them increasingly vulnerable. Stay involved and help your Kupuna to find healthy companionship. Help them to get involved in community activities, take classes, or find a new hobby.
    • Ulterior Motives: Be cautious when the individual you are seeing has a little too much to gain through this marriage. Are they non-residents? Are they in need of a green card? Are they financially unstable?

    Marriage should be a sacred bond built upon love and friendship. Unfortunately to some, marriage transforms into a dollar sign, a green card, or even a benefits package. Stay involved in your parent’s lives. The best way to protect your parents from sham marriages is to prevent them from loneliness and isolation — feeling the need to seek companionship from others that may not have their best interests at heart.

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

    www.ElderJusticeHonolulu.com

    When it comes to love and relationships, we are particularly protective of our elders. We scrutinize new companions who come into their lives; when our kupuna decide to marry, we get concerned about the new partner’s intentions. Stephanie (not her real name) called my office, she was panicked. She just discovered a life her father…

  • To Buy or Not to Buy a Vacation Home?

    You finally feel ready to make that dream purchase. Before you put an offer in for a getaway on a neighbor island or a city lights apartment, consider the realities of owning a second property.

    Can you afford it?

    Owning a second home entails additional expenses such as:

    • Furniture or other household items
    • Air fare or wear and tear on your vehicle
    • Annual repairs or improvements
    • Recreational equipment such as a boat
    • Utilities: heat, air-con, water, internet and cable
    • A security system for when you’re away

    If you plan to rent your vacation home, you may need to hire a property manager.

    Is the location right?

    Homes in areas where temperatures dip below freezing need to be winterized and monitored to avoid frozen pipes. Where there’s snowfall, there’s shoveling and plowing to manage. Distance is also a key consideration, and the relative ease of getting there. Have you chosen a location and property that will grow in value or will it be hard to sell when the time comes?

    Would renting be a better option?

    Short-term property rental can provide the comforts of a home without the obligations of ownership. Rather than be tied to one place, you can explore new locations when you take a vacation. Alternately, if you do purchase a vacation home, you may want to list your property as a rental when it’s not in use. If your vacation home is in a high demand area, you might be able to generate an income stream—but don’t forget the costs of managing the property from afar.

    How will your taxes be affected?

    Different tax rules apply to owning a second home, which can be somewhat complex. Rental income and expenses, property taxes and mortgage interest are a few items that could impact your tax return. You’ll want to consult with a tax advisor to sort out the details and discuss how your taxes will be affected.

    There are a lot of factors to think about before purchasing a vacation home. Consider working with a financial professional to determine how buying a second home will affect your long-term financial plan.

    Michael W. K. Yee, CFP
    1585 Kapiolani Blvd., Suite 1100, Honolulu
    808-952-1222 ext. 1240 | michael.w.yee@ampf.com

    Michael W K Yee, CFP®, CFS®, CRPC®, is a Financial Advisor and 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.
    Ameriprise Financial, Inc. and its affiliates do not offer tax or legal advice. Consumers should consult with their tax advisor or attorney regarding theirspecific 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.
    © 2015 Ameriprise Financial, Inc. All rights reserved. File # 1106728

    You finally feel ready to make that dream purchase. Before you put an offer in for a getaway on a neighbor island or a city lights apartment, consider the realities of owning a second property. Can you afford it? Owning a second home entails additional expenses such as: Furniture or other household items Air fare…

  • Retiring Early? Answer 5 Questions First

    While many people are forced to stop working earlier than they’d planned due to health or employer issues, others dream of early retirement. The upside of early retirement is easy to understand – more time to pursue your interests, while you are still healthy. The downside risks center on cost of retirement, and the emotional impact of changing your routine. Keep in mind that given today’s life expectancies, anybody who retires before age 65 or 66 could easily spend two or three decades in retirement. Given this reality, here are five key questions you should answer before you decide to retire early:

    Q1: Do you have a realistic plan to generate income for decades?

    Making realistic projections about all sources of future revenue and how much income you can draw over a lifetime really matters. Remember, cost of living will likely increase over time, requiring you to withdraw more from your nest egg in the future. To meet this financial challenge, you need a large, widely invested portfolio. Be sure to add in other sources of retirement income: Social Security, pension income and inheritance you have received or can count on receiving.

    Q2: Do you have outstanding debts to pay?

    If you continue to carry a home mortgage, automobile loan, credit card debt or home equity loan into retirement, ongoing payments subtract from your disposable income. The ideal situation is to have little or no debt when you head into retirement so you can be more efficient in the use of your available financial resources.

    Q3: Are you going to claim Social Security benefits early?

    Most people are first eligible to claim Social Security benefits at a reduced rate, when they reach age 62. Full retirement benefits are paid to persons who retire between ages 65 and 67, depending on the year of birth. Early retirees must prepare to either substitute for Social Security benefits in earlier years or accept smaller Social Security payments throughout their lives.

    Q4: What is your plan for health care?

    One of the costliest aspects of early retirement is paying for private health insurance after you leave work and before you are eligible for Medicare. Explore your options for health care exchanges and private insurers. Perhaps you are covered under a former employer’s plan for retirees. Remember, persons in their 50s and 60s often pay the highest premiums for health insurance, so this will represent a significant expense.

    Q5: Are you emotionally prepared for a dramatic change in your life?

    Leaving the routine you’ve been living for decades is a significant adjustment. Before leaving the workforce, envision your new life after retirement. Plan to stay active and connected to people; provide yourself the the kind of stimulation you were accustomed to while you worked.

    Early retirement is likely to work out best for those who plan ahead. Answering these five questions in an honest and comprehensive way is a good starting point.

     

    Michael W. K. Yee, CFP
    1585 Kapiolani Blvd., Suite 1100, Honolulu
    808-952-1222 ext. 1240 | michael.w.yee@ampf.com
    Michael W K Yee, CFP®, CFS®, CRPC®, is a Financial Advisor and 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 advisor. Ameriprise Financial Services, Inc. Member FINRA and SIPC. © 2014 Ameriprise Financial, Inc. All rights reserved. File # 1065887

    While many people are forced to stop working earlier than they’d planned due to health or employer issues, others dream of early retirement. The upside of early retirement is easy to understand – more time to pursue your interests, while you are still healthy. The downside risks center on cost of retirement, and the emotional…

  • History, Herstory, Yourstory

    One Sunday morning, a few years back, I was out driving on the North Shore, headed to Starbucks for my morning cup of coffee. The traffic wasn’t light, as it was surf season, which means it was pretty crowded with only one lane going in each direction. I noticed in my rearview mirror that there was a car weaving in and out of traffic, passing other cars and speeding. As the driver passed me, I remembered getting angry at this impatient and disrespectful driver. I continued to observe the driver as they sped ahead, weaving in and out of traffic, until the car finally disappeared. I couldn’t imagine anyone more selfish and crazy, making it so dangerous for everyone else just because of their impatience…until I got to Foodland where Starbucks was. You see, across the street was a fire station. And there was the crazy driver — at the fire station. Their passenger was seated, surrounded by firemen who were taking the passenger’s blood pressure. As I entered Starbucks, I could hear an ambulance driving away from the fire station.

    This new year, you might be considering making or updating your estate plan. When you do, please do not rely solely on the legal plan to pass your intentions on. Where appropriate, please take the time to discuss your intentions with your family, and write them down. You are the custodian of your wishes, intentions, and memories. We cannot afford misunderstanding, or to completely lose them when you are not able to express or explain yourself. The estate plan, in a way, is your story and belongs only to you. Please do your best to clearly share your story.

    Stephen B. Yim, Attorney at Law
    2054 S. Beretania St., Honolulu
    808-524-0251 | stephenyimestateplanning.com

    One Sunday morning, a few years back, I was out driving on the North Shore, headed to Starbucks for my morning cup of coffee. The traffic wasn’t light, as it was surf season, which means it was pretty crowded with only one lane going in each direction. I noticed in my rearview mirror that there…

  • Easy Come … Easy Go

    Receiving an inheritance can certainly be like winning the lottery. What could be wrong with that?

    Callie Rogers, age 16, won $3.1 million in a British lottery. By the age of 22, the unwed mother of two had attempted suicide twice, and spent over $400,000 on cocaine alone (in addition to more conventional luxuries). She was broke, living with Mom, and working three cleaning jobs.

    William “Bud” Post won $16.2 million in the Pennsylvania Lottery in 1988. Within five years, his brother had put out a murder-for-hire contract on him. His landlady, who was also his sixth wife, had forced him to give her a third of his winnings. He was convicted for assault for firing a shotgun at a bill collector. By the time he died in 2006, Post had gone from scooping up annual lottery payments of $497,953.47 to scraping by on $450 per month in disability compensation.

    Jack Whitaker won the largest Powerball payout in history. In just four years, he blew through $113,386,407.77 (after taxes). He gave away $14 million to his church and other charitable causes, but he went from successful businessman to a sleazy strip club regular. Money’s impact on his loved ones was even more tragic. The apple of his eye — his granddaughter, Brandi — unfortunately spent her new-found wealth on a trip down the fast lane to drug addiction. Brandi ended up dead under circumstances that pointed to murder.

    So what will your loved ones do with what you leave behind for them? The above examples are extreme, but they show how a sudden windfall can quickly turn from a blessing into a curse. The lesson applies to all of us. It doesn’t take millions of dollars to ruin a life. Rather than give your loved ones direct access to what you leave behind, you can give them their inheritance in trusts, administered by people or institutions who will provide good judgment and wise guidance. Those trusts can contain provisions to protect your beneficiaries from bad habits, opportunistic friends and family members, and their own lack of wisdom and experience. You can even add a variety of conditions to your gifts. You can condition distributions from trusts upon such things as the beneficiary’s passing a drug test, holding a steady job, or staying out of jail. You can also impose positive conditions, such as directing your trustees to make larger ongoing distributions to beneficiaries who are maintaining a certain grade point average in college or meeting other standards of achievement.

    Your legacy deserves to be passed on in a way that will genuinely benefit your loved ones. There’s no harm in being creative about how you achieve your estate planning goals.

     

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

    Receiving an inheritance can certainly be like winning the lottery. What could be wrong with that? Callie Rogers, age 16, won $3.1 million in a British lottery. By the age of 22, the unwed mother of two had attempted suicide twice, and spent over $400,000 on cocaine alone (in addition to more conventional luxuries). She…

  • Cons Prey on Good Intentions

    For hours, Elaine (not her real name), age 69, sat on the lanai of her Pearl City townhouse waiting. She was told that at any moment, the governor was going to arrive and present her with a new car and a check for $2 million. During this time, her adult son was yelling because he just found out that over the past year, she wired over $40,000 to the “International Lottery Commission” to pay the fees and taxes on her lottery winnings. He was so upset, in fact, that neighbors called the police, fearing for the safety of the mother. When they arrived, he calmed down enough to ask her why she even wanted a car because she didn’t even drive. Her response was, “I wanted to get you something nice, for being such a good son.”

    There have been numerous studies trying to explain why seniors fall victim to so many financial scams. Some theorize that as the brain ages, it becomes more susceptible to these cons. In essence, stating that a form of mild incompetency is a natural stage of growing older. This belief, in my opinion, is ageist, and does not explain the great many elders who lead productive and successful lives, well after their retirement age.

    No, the vast majority of victims I have encountered were individuals of sound mind, with no defect in their cognitive thinking that led them to believe in something that was too good to be true.

    In my experience, it is their desire to continue the role started decades ago, namely, being a provider. Many victims of financial abuse are either parents or grandparents, or persons who lived their life supporting a spouse or sibling. They worked hard and sacrificed to provide their family with the best they could afford. As it dawns on them that they may no longer be able to accomplish this self-appointed supporting role, they become desperate. Desperation leads them to want to believe that they are lucky enough to have won a lottery they never entered, or blessed by an invitation to participate in an investment opportunity with unbelievable returns.

    These feelings of urgency are only fueled by the tactics of conmen who talk about “leaving a legacy” or guarantee a way of providing for the family once the senior is gone. Think of a life insurance advertisement on steroids with a lot of guilt added for effect.

    How can this be prevented? Perhaps one thing a loved-one can do is communicate to the senior sincere gratitude for everything they have done for them. Explain how the senior’s hard work and encouragement provided a foundation to be successful in the their own lives. Or better yet, clearly demonstrate that they no longer need financial help from the Kupuna. It is through these actions, that the senior will know they completed their job of being a provider.

     

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

    For hours, Elaine (not her real name), age 69, sat on the lanai of her Pearl City townhouse waiting. She was told that at any moment, the governor was going to arrive and present her with a new car and a check for $2 million. During this time, her adult son was yelling because he…

  • Recognizing Warning Signs Of Abuse

    Recently, I appeared on the Generations Radio Show (Saturdays from 5 to 6 pm on AM 690) aired November 22 and can be heard at www.Generations808.com) with Lt. John McCarthy of the Financial Crimes Unit of the Honolulu Police Department. With 39 years of police department experience, he is nationally recognized as an expert in financial crimes and elder abuse.

    On the show, we discussed how scams go undetected because people don’t recognize the warning signs of trouble and abuse. Listed here are danger signals, that if seen, should prompt further investigation.

    Isolating the victim: Abusers don’t want the victim to have a support system and will either try to physically remove the person from loved ones (like a caregiver not letting family members visit the elder) or deceive the victim into thinking that a concerned person is really trying to harm them (like one sibling telling the parent that the other sibling is interfering because he wants everything himself).

    Secrecy: A lot of scams involve instructing the victim not to reveal that the transaction/event is occurring. For example, a letter indicating that a senior has won the lottery will instruct the “winner” not to tell anyone of the prize because “there are a lot of scams going on right now.”

    Urgency: People who are rushed or under pressure make poor decisions. Scammers will make an offer, like “I’m in the neighborhood today with some extra building materials — I can do some repairs really cheap if you hire me right now.”

    Emergency/tragedy: Emotional decisions are not the best ones and scammers want you to make choices when you are not thinking rationally. The “Distressed Relative Scam” (or “Grandma Scam”), when you get a frantic call in the middle of the night relating that a loved-one is in dire straits and only money can solve the problem, is a good example of this technique.

    Green Dot/money pack cards: A Green Dot/Moneypac card is a gift card you purchase and place money into at the cash register. It is a common way criminals transfer money from their victims into accounts around the world. ANY transaction in which money is to be paid using a Green Dot card should be suspect, for instance, the IRS calling and demanding payment for delinquent taxes with a Green Dot card.

    Loneliness: Companionship (or the hope thereof) in exchange for money is never a good idea. Whether it is “your soulmate” you found on an online dating site asking for a loan or a caregiver accepting generous gifts to stay longer, taking advantage of an elder’s loneliness is abuse. 

    Too good to be true: Offers, promises, business deals and investments that sound too good to be true are just that and are merely bait to lure victims into making poor decisions.

    If you suspect elder abuse, first call 911 and then report it to the authorities listed below.

    To report suspected elder abuse, call police, 911, and/or:
    Elder Abuse Unit: 808-768-7536
    Adult Protective Services: 808-832-5115
    ElderAbuse@honolulu.gov
    www.ElderJusticeHonolulu.com

    Recently, I appeared on the Generations Radio Show (Saturdays from 5 to 6 pm on AM 690) aired November 22 and can be heard at www.Generations808.com) with Lt. John McCarthy of the Financial Crimes Unit of the Honolulu Police Department. With 39 years of police department experience, he is nationally recognized as an expert in…

  • Creative Giving And Tax Planning

    The holidays remind us of two things: gift giving and year-end tax planning. A charitable gift can help you support your favorite cause, benefit your family and reduce your taxes. In addition to cash gifts, consider these other two charitable gift strategies:

    Appreciated Asset Gifts

    Gifts of appreciated assets such as securities or real estate can help your favorite charity, may not affect your cash flow and can provide the following tax benefits:

    • A charitable deduction against income taxes
    • Bypass of capital gains taxes
    • Avoidance of the tax on net investment income

    Charitable Life Income Plans

    If you have low-yielding assets and desire higher income, a charitable life income gift may be worth exploring. In exchange for your gift of cash or appreciated securities, you may reap multiple benefits:

    • Receive a lifetime income
    • Generate current income tax deduction
    • Bypass of capital gains on appreciated assets
    • Make it part of your legacy, a future gift upon your passing

    Many charities have gift offices that can help you plan. You should also consult your financial or tax advisor for information specific to your situation and federal rules that might apply.

    Please note: this information is not intended as tax, legal, or financial advice. Gift results may vary.

    National Kidney Foundation of Hawaii
    808-589-5976 | jeff@kidneyhi.org
    For Planned Giving: www.kidneyhawaii.org
    Main: www.kidneyhi.org | www.kidney.org

    The holidays remind us of two things: gift giving and year-end tax planning. A charitable gift can help you support your favorite cause, benefit your family and reduce your taxes. In addition to cash gifts, consider these other two charitable gift strategies: Appreciated Asset Gifts Gifts of appreciated assets such as securities or real estate…

  • After The Pause

    I like to call our meeting room where we meet to discuss estate planning “the pause room.” When we enter and close the door, and leave outside all the busy-ness in our lives — we put only the matters relating to estate planning on the table. We pause for about an hour, and concentrate solely on one very important matter.

    When we come out and re-enter the busy-ness of life, it’s easy to forget what we just discussed in “the pause room.” After completing the estate plan, your attorney might provide a letter suggesting that certain assets be directed to, or placed into trust. This is called “funding” the trust — it is just as important as creating the trust in the first place, and making sure that the right beneficiary receives the right asset. Funding is either by beneficiary change or by change of title. Assets that usually require change by beneficiary include: life insurance, retirement accounts and annuities.

    The assets that commonly require changes to title include: real estate and brokerage accounts.

    Each asset is a little different, and while the instructions from your attorney might be clear, we often put them aside or plain forget to do the funding because there are so many other things pulling and tugging for our attention.

    This is why it is essential for the attorney, financial advisor and the client to work together “after the pause” to ensure that each asset is properly directed to, or placed into trust, and that written confirmation is received from the financial company or other institution ensuring that the change was properly made.

    Stephen B. Yim, Attorney at Law
    2054 S. Beretania St., Honolulu
    808-524-0251 | stephenyimestateplanning.com

    I like to call our meeting room where we meet to discuss estate planning “the pause room.” When we enter and close the door, and leave outside all the busy-ness in our lives — we put only the matters relating to estate planning on the table. We pause for about an hour, and concentrate solely…

  • ‘Tis The Season: Think Charitable Giving

    The giving season is upon us as 2014 comes to a close. Charitable donations are an important way of giving back to our community. If you are eager to give back or help out, just how do you decide how much to give and through whom? For those wishing to exercise wise stewardship, these issues are significant.

    An increasingly popular metric is “effectiveness,” or the ability of a charity to make a difference. To some, this is a technical question and involves hard data, number-crunching and nonbiased analysis. Resolving the technical questions is an easier matter in the digital age. For example, you can log on to www.charitynavigator.org, among other websites, to research how “effective” your gift to a certain charity will be.

    Beyond the charity’s ability to make a difference, you may want to know how much of your gift will be used for administration and marketing expenses, as opposed to actually feeding the hungry or buying medicines for a remote clinic. Many potential donors balk at giving to charities that spend more than ten percent of donations on things that do not directly benefit clients.

    Measuring how a charity makes a difference is also a question of how you define “making a difference.” How do you determine the values most important to you and how do you prioritize among them? Do you give locally or give to the neediest? Many veterans of charitable giving spread out their gifts among a few charities that carry out good works both at home and abroad.

    Another thing to consider with your charitable giving is providing for your own financial security while you provide for others. Your legal, accounting and financial advisors can help you with such gifting vehicles as charitable remainder trusts (CRTs), which enable you to avoid capital gains taxes, charitable gift annuities, which, like CRTs, provide you with an income stream and a current income tax deduction and in-kind gifts. In-kind gifts could be things like low-basis corporate stock or real estate which, if you sold, would result in capital gains tax liability. If you give the stock or real estate directly to your favorite charity, you will get a deduction for the full value of your gift, without incurring a capital gain.

    Be sure to get current income tax deductions for your year-end gifts; write and deliver or mail your checks, or complete your credit card transactions, by December 31. If you are making in-kind gifts, deliver them and obtain receipts dated no later than December 31.

    Time is ticking for those year-end gifts. It is time to nail down your priorities and preferences, obtain appropriate advice and make some important decisions. Enjoy a giving holiday season.

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

    The giving season is upon us as 2014 comes to a close. Charitable donations are an important way of giving back to our community. If you are eager to give back or help out, just how do you decide how much to give and through whom? For those wishing to exercise wise stewardship, these issues…