Category: Wisdoms

  • Estate Plans Explained

    How Can I Be Sure My Family Won’t Fight After I’m Gone?

    Unfortunately, there is nothing you can do to guarantee that there will be no fighting among your loved ones after you are gone. There are plenty of difficult emotions to deal with after the passing of a loved one, and conflict can easily make matters much worse. Here are some steps you can take if you are concerned about whether you’ll be able to rest in peace.

    Encourage family to sit down and talk out their differences. This is central to the Hawaiian practice of ho‘oponopono. Very often, small offenses grow into large offenses if they are not resolved. Families are sometimes torn apart because problems fester, and then get aggravated by various tensions, and then hit the boiling point when a senior family member dies and is no longer there to keep the peace. Most of the estate-related litigation we see has nothing to do with the estate per se, yet it becomes the focus of battles. If you are aware of conflicts between your children, encourage resolution and forgiveness during your lifetime.

    Explain your estate plan. Include explanations for any gifts that may be misinterpreted or resented. Most of the time, we want to treat our children equally, but that does not necessarily mean giving each of them the same amount of assets when we die. If you helped one child buy a house and helped another put his children through expensive private schools, you may want to give your other children bigger shares upon your death. Providing some kind of explanation for this can head off hard feelings.

    Ask your estate planning attorney to include an in “terrorem” clause in your will and trust. As you might guess from the name, it is intended to strike terror into the heart of anyone who might be inclined to contest your estate plan. The clause can be as detailed as you like, but at a minimum, you might want to say that if anyone questions your competency or the validity of your estate plan after you are gone, they had better prove their case in court, because otherwise they will receive nothing from your estate. This kind of language can discourage many problems, but it still does not guarantee that no one will call your bluff.

    Acquaint your children with your estate plan. Make sure they understand that you are not giving up your right to change your plan in the future, but are simply giving them an idea of how your estate plan may look upon your death. Whatever you do, don’t use the explanation as an opportunity for manipulation. You may have heard the story about the lady who privately told each of her children, “When I’m gone, you’re going to get the house.” She hoped to assure that her children would treat her well during her lifetime. You can imagine what happened when she died and her children found out that the house went to Mom’s favorite charity. The biggest beneficiaries of that estate plan were the lawyers who represented the charity and each of the children.

    Most of the time, estates pass from generation to generation without conflict or hard feelings, but the subject deserves some thought if you have reason to believe that your loved ones will not see eye to eye.

    SCOTT MAKUAKANE, Attorney at Law of Est8Planning Counsel LLLC, specializing in estate planning and trust law.

    Honolulu: (808) 587-8227 | Maui: (808) 891-8881 | Email: maku@est8planning.com

    www.est8planning.com

    How Can I Be Sure My Family Won’t Fight After I’m Gone? Unfortunately, there is nothing you can do to guarantee that there will be no fighting among your loved ones after you are gone. There are plenty of difficult emotions to deal with after the passing of a loved one, and conflict can easily…

  • Time for Thanks!

    Join in on healthy, summer events

    Every once in a while an opportunity comes along to say, Thank you. We never grow too old to express our thanks, and we should graciously receive thanks from others. In truth, being thankful should be woven into the fabric of life. This is true for individuals and it is true for community organizations, such as the National Kidney Foundation of Hawai‘i (NKFH).

    This summer, with a weeklong series of free concerts, fairs and events, the NKFH would like to thank the community for its year-round support in the fight against kidney disease.

    The signature event occurs in late June when NKFH hosts the XVI International Congress on Nutrition and Metabolism in Renal Disease and First World Renal Nutrition Week, from June 26 – 30, 2012. The congress is a biannual gathering of doctors, nutritionists and medical researchers in renal disease and nutrition from around the world.

    Sixth Annual Peace on Earth Concert

    Hawai‘i Theatre – June 27, 6:45 p.m.

    Free admission; open to public

    This concert event, with Al Waterson as emcee, will feature some of Hawai‘i’s best performing artists from a variety of music genres. Among the performing artists is Ginai performing with Pierre Grill, the Thursday Night Jazz Band, the a cappella choral group known as the Samoan Gospel Heralds, Haw’n Boy Mike Ka‘awa and his band, and The Carmen Haugen Quartet.

    National Kidney Foundation of Hawai‘i Health and Craft Fair

    Hilton Hawaiian Village Hotel, Tapa Lounge – June 28, 10 a.m.– 2 p.m.

    Free admission; open to public

    The National Kidney Foundation of Hawai‘i Health and Craft Fair has two components, separately staged. The first component of the event is a craft fair featuring Hawaiian crafts made by local artisans.

    The second component is a health fair that will offer various health screenings sponsored by WE, a “hui for health” program that provides health screenings throughout Hawai‘i in conjunction with other healthcare organizations. Screenings include spirometry, glucose, kidney, hepatitis and hearing tests. While anyone can contract kidney disease, people with high blood pressure and diabetes, as well as certain ethnic groups such as Filipinos, Native Hawaiians, Japanese and others of Asian background are most at risk. A free screening can lead to early detection and treatment.

    Quilted Memories Tour

    Hilton Hawaiian Village Hotel, Tapa Lounge – June 26–  30

    Free admission; open to public

    The Quilted Memories Tour will be on display throughout the week in the Tapa Ballroom area. This tour features quilts made by families of organ donors. Each 7 x 7-inch square fabric swatch includes a “life vignette” that portrays a part of a donor’s life. Once the swatches are sewn together into a quilt, it is a powerful testimony of the ultimate gift of life. The Quilted Memories Tour is an outgrowth of the bereavement support group of the Hawai‘i Donor Family Council and is supported by the NKFH.

    If you are a medical professional and want to attend the XVI International Congress on Nutrition and Metabolism in Renal Disease, or if you would like to attend the gala and silent auction on Friday evening, June 29, please contact jeff@kidneyhi.org.

    National Kidney Foundation of Hawai‘i

    589-5976 | www.kidneyhawaii.org

    Join in on healthy, summer events Every once in a while an opportunity comes along to say, Thank you. We never grow too old to express our thanks, and we should graciously receive thanks from others. In truth, being thankful should be woven into the fabric of life. This is true for individuals and it…

  • The Third Guarantee: Change

    An often-heard quote about lifetime guarantees is the one about death and taxes. I would suggest that there is a third guarantee — that life changes. Nothing stays the same. So, once you’ve completed your estate plan, you’ll want to review it every so often to address life’s changes. What could a review with your estate planner do for you?

    First, reviewing your plan will force you to locate it. Often, after we prepare an estate plan, we put it in a very safe place. And, sometimes, we forget where that very safe place is. Take your plan out every once in a while, dust it off, review it and remind key people of its location.

    Second, a review can ensure that you’ve properly funded your trusts. Check your beneficiary designations for life insurance and retirement accounts, and make sure that other assets are properly titled in the trust. This not only helps you avoid probate, it also ensures that the correct beneficiaries receive the distributions. All too often, we find that life insurance or retirement accounts do not have beneficiaries listed, or that the beneficiary was not changed due to life changes. For example, a client’s wife recently passed away. Prior to her getting married, she had named her mother as beneficiary of a life insurance policy. She had every intention for the proceeds to go to her husband and their child. However, she did not change the beneficiary to note this change.

    Third, because relationships are fragile and change, reviewing your estate plan allows you to examine your relationship with the people you’ve named as guardian, agent under powers of attorney and trustee. Make sure that they are still the one’s that you want to make decisions for you during any period of incapacity or to follow out your instructions upon your death.

    Fourth, you can see how your beneficiaries are doing. For example, you can explore questions such as:

    • Are my children now adults and not in need of guardianship?
    • How are my young adult children doing? Do they need more time to mature before they handle a significant amount of money?
    • Have some of my beneficiaries gotten into trouble with drugs, the law or misspending of money?
    • Have marriages, new births, divorce, death or other circumstances changed relationships?

    These questions can help you determine whether you want to change the time and manner of distributions.

    Fifth, you can meet with a lawyer to get an update on any law changes, tax or otherwise. It’s an opportunity to discuss any changes in the community standards and policies as they relate to estate planning. For example, during the past couple of years, many financial institutions have established policies where they will not accept powers of attorney older than 2 or 3 years old. A couple of financial institutions have established policies that they simply will not accept powers of attorney.

    So much like with your physician, dentist, automobile mechanic and financial advisor, you will want to get an estate planning check-up and tune-up every now and then.

    Stephen B. Yim, Attorney at Law | 2054 S. Beretania Street, Honolulu, HI 96826
    (808) 524-0251 | stephenyimestateplanning.com

    An often-heard quote about lifetime guarantees is the one about death and taxes. I would suggest that there is a third guarantee — that life changes. Nothing stays the same. So, once you’ve completed your estate plan, you’ll want to review it every so often to address life’s changes. What could a review with your estate planner…

  • Lookout: Contractor Scams

    Recently, across the Islands, senior citizens have become the target of “contractor” scams, where scammers perform home improvement and repairs that ultimately cheat or rip off consumers. Senior citizens are often the target of these scams primarily because they are more likely to be home during the day, have some form of steady income or a savings in place. And, many seniors tend to have a trusting nature and find it difficult to tell door-to-door solicitors ‘no.’

    The most common type of contracting scam is the pavement scam, where scammers go door-to-door offering to pave driveways for homeowners. Other types of contracting scams include plumbing, roofing, remodeling and yard service projects. Usually these scammers will find something “wrong” with your house and will “repair” it with inferior quality and materials.

    Warning signs that generally indicate a scam:

    Selling door-to-door: True contractors will rarely sell their services door-to-door.

    Left over from another job: Contractors know their material and most of the time there is no left over.

    The quick decision: Take the time to think about it, never hire someone on the spot, and always get at least two estimates from different contractors.

    No Contract: Get it all in writing. Write up a contract specifying the amount of work to be done and the total price.

    Cash Only and Upfront Fees: The majority of contractors will accept forms of payment other than cash. Beware of those who demand full payment before the job is even started.

    For any job, get a written estimate, compare prices and check references, licensing and insurance.

    If you’re having problems with a contractor or if you feel that you have been scammed, please call the BBB. The BBB can offer help and get the word out to others in the community.

    For more information on how to hire contractors, please visit www.hawaii.bbb.org.

    Better Business Bureau of Hawai‘i1132 Bishop Street #615, Honolulu, HI 96813-2813
    Phone & Phone Hours:808-536-6956 (O‘ahu) | 877-222-6551(Neighbor Islands) | 808-628-3970 (Fax) 9:00 am – 2:00 pm, Mon. – Thurs., 9:00 am – Noon, Friday
    File Complaint: www.bbb.org/file-a-complaint/

    Recently, across the Islands, senior citizens have become the target of “contractor” scams, where scammers perform home improvement and repairs that ultimately cheat or rip off consumers. Senior citizens are often the target of these scams primarily because they are more likely to be home during the day, have some form of steady income or…

  • Who’s on First?

    The humor behind the classic comedy routine, Who’s on first?, comes from the fact that the speakers are using identical terms to mean different things. Yet they both pretend not to recognize the problem. The language of estate planning can raise problems for the uninitiated, and the problems may not be funny at all. The vocabulary of estate planning is very precise, and a seemingly innocuous slip of the tongue can make a world of difference.

    A good example is the term “estate.” What does it mean? Does it mean land, as in “real estate,” or what passes by way of my Will, as in “probate estate,” or does it mean what is subjected to “estate tax” after I am gone? It can mean a wide variety of things, depending on the context and the adjectives that surround it.

    Because the word “estate” is central to estate planning, here is a brief glossary of the most common uses of the term.

    An “estate” can be land, or just an interest in land. An example of an interest in land is a life estate. A life estate gives the owner the right to use the land for the life tenant’s lifetime, but then the estate terminates and the land goes to the remaindermen (a person who inherits or is entitled to inherit property upon the termination of the former estate owner).

    Probate estate is whatever you own at death that will pass by way of your Last Will and Testament. It might include such things as land, bank accounts, cars and jewelry.

    But wait! How come an estate tax return covers not only a person’s probate estate, but also things that have nothing to do with the persaon’s probate estate — like life insurance policies, retirement accounts, jointly-owned assets and trust assets? That is because your estate for estate tax purposes includes just about everything you own or control at the moment of your death. However, with the right estate planning, you can have a lot of control over assets that are not included in your estate for estate tax purposes.

    For example, assets (sometimes called a trust estate) that you own and control as the trustee of a trust may or may not be part of your taxable estate, just depending on the words in the trust agreement that say what you can do with the trust estate. Choosing the right words is critical.

    You can see how proper estate planning requires careful attention to detail and precise use of language. Helpful legal information at www.hawaiilaw.tv. You also can find elder care information by clicking here.

    SCOTT MAKUAKANE, Attorney at Law of Est8Planning Counsel LLLC, specializing in estate planning and trust law.
    Honolulu: (808) 587-8227 | Maui: (808) 891-8881 | Email: maku@est8planning.com
    www.est8planning.com

    The humor behind the classic comedy routine, Who’s on first?, comes from the fact that the speakers are using identical terms to mean different things. Yet they both pretend not to recognize the problem. The language of estate planning can raise problems for the uninitiated, and the problems may not be funny at all. The…

  • New Law for Life

    We all have choices to make in our lives, and if we are thoughtful about the opportunities and problems we face, some of our choices can be uplifting for our families and communities. The same can be said about our local institutions

    Organ Transplant Legislation

    Recently the Hawai‘i legislation was passed to allow organ transplantation in Hawai‘i. The new law paves the way for Queens Medical Center to open an organ transplant center in Honolulu. This choice is truly uplifting.

    The new law ensures that Hawai‘i patients and their families can get the care they need to fight kidney disease without the expense and hassle of getting on another state’s transplant list or scheduling Mainland medical trips.

    Gov. Abercrombie spoke of the legacy of local transplant care in Hawai‘i and the vision of early health care pioneers. In the tradition of caring for our ‘ohana, the Governor said, “This was a collaborative effort in which the Legislature, community members and health providers understood that lives were at stake. I’m grateful that we are able to make a positive difference.”

    National Kidney Foundation of Hawai‘i

    The NKFH is pleased to have advocated on behalf of kidney patients for an organ transplant center in Hawai‘i. It is estimated that 156,000 people in Hawai‘i have kidney disease, with another 100,000 at risk of incurring the disease. Some of these people will one day need a kidney transplant.

    To emphasize the importance of local organ transplantation, the NKFH invited a few kidney patients who are waiting for transplants to attend the legislative sessions and signing ceremony. Their stories reveal just how important the transplant center is for Hawai‘i’s residents.

    Patient Story

    Kidney patient, Fernando, attended the signing ceremony. He was diagnosed with chronic kidney disease (CKD) following a bout with pneumonia. He’s been on dialysis for nearly four years and has been on the transplant list for two years. He says that the disease has impacted his family because he has to stay away from the grandchildren when they get colds, out of concern that he will get sick and have pneumonia, which could lead to kidney related complications. Fernando walks regularly, follows a diet suitable for CKD patients, and has a good attitude about his dialysis treatments. With a twinkle in his eye, Fernando says that he considers the dialysis sessions as a “part-time job” that pays him with good health.

    We at the NKFH are grateful for the work done by our elected leaders, the inspiration of dedicated kidney patients, and the faithful help of friends and supporters who make the “uplifting choice” to help us accomplish of our mission. Mahalo.

    National Kidney Foundation of Hawai‘i
    589-5976 | www.kidneyhawaii.org

    We all have choices to make in our lives, and if we are thoughtful about the opportunities and problems we face, some of our choices can be uplifting for our families and communities. The same can be said about our local institutions Organ Transplant Legislation Recently the Hawai‘i legislation was passed to allow organ transplantation…

  • What’s in the Health Care Law for You – Today

    Many families across Hawai‘i already know how the new health care law, the Affordable Care Act, is helping them. They’ve been able to maintain health care coverage for their college-age children, or buy health insurance after being previously labeled “uninsurable.” Many more have obtained discounts on expensive prescription drugs.

    Still, you may be wondering, What’s in the new health care law for me?

    AARP’s Health Law Guide, www.aarp.org/healthlawguide, can create a personalized report that tells you how the law will help you. If you are uninsured, your report will identify coverage you may be eligible to receive.

    Because different parts of the law will go into effect over a number of years, it’s a good idea to learn about the changes that are in store for you this year. In addition to providing your personalized report, the AARP Health Law Guide can help you stay on top of the law as it is implemented.

    A few changes you may appreciate right now:

    1. If you’re at risk of reaching the Medicare Part D doughnut hole—the threshold at which you’re responsible for a higher portion of your drug costs — you will receive a 50 percent discount on brand-name drugs and a 14 percent discount on generic drugs while you’re in the coverage gap.
    2. If you have Medicare, you can receive preventive care services such as mammograms, immunizations and screenings for cancer and diabetes, as well as an annual wellness visit, at no cost to you. If private insurers consider you “high-risk” due to prior or current health problems, and if you have been uninsured for at least six months, you may buy insurance through the Pre-Existing Condition Insurance Plan (PHIP). For more information go to http://aarp.us/wPdv2k.
    3. If you have an uninsured adult child under age 26, you may be able to add him/her to your family’s existing insurance plan.
    4. If you get sick, you will not lose your coverage as long as you continue to pay the premiums.

    Whether you currently have health coverage or not, it’s important to get the facts about how the law could impact your situation. In less than five minutes, AARP’s Health Law Guide can help you figure out how the new law benefits you and your family, how the law works with your current coverage, and what other health coverage may be available.

    Many families across Hawai‘i already know how the new health care law, the Affordable Care Act, is helping them. They’ve been able to maintain health care coverage for their college-age children, or buy health insurance after being previously labeled “uninsurable.” Many more have obtained discounts on expensive prescription drugs. Still, you may be wondering, What’s…

  • The Dollar is Up? The Dollar is Down?

    What does this all mean? You hear it regularly in the news: “The dollar rose today against other major currencies,” or “The dollar lost ground today on foreign exchange markets.” Just like stocks or bonds, currency’s value can fluctuate in comparison to each other on a daily basis.

    For example, at the start of 2011, it would have cost approximately $1.34 to purchase one euro (the European common currency). By the end of April, the U.S. dollar lost value, and $1.48 was required to buy a single euro.

    Why should you care? Because currency fluctuations affect anyone who buys goods made in other countries, travels abroad or invests globally. In other words, almost all of us are impacted on some level.

    The impact of fluctuating currency values

    Consider what happens if you are traveling overseas. If the dollar loses value compared to the currency of the country you’re visiting, it will cost more to make purchases in that region. If the dollar strengthens, your buying power will improve.

    In terms of the larger economy, U.S. companies seeking to sell products overseas will benefit when the dollar is weaker because this makes it cheaper for other countries to purchase American-made goods. In general, multi-national companies that sell American goods around the world will generate more profits from sales during periods of a weak dollar.

    As an investor in overseas stocks, you also may benefit when the dollar is declining in value. Suppose you invest $1,000 in a European company at a time when the exchange rate is $1.25 U.S. per euro. Your investment would be worth 800 euros. If after one year, the investment appreciates by five percent, it will be worth 840 euros. But if at the same time, the U.S. dollar had weakened to $1.35 per euro, your investment would be equivalent to $1,134, representing a much more sizable gain of 11 percent. The bulk of the return, in this case, comes from the euro gaining strength. By contrast, if the dollar gained ground during that period, your investment, when sold, would be worth less after being converted back into U.S. currency.

    An unpredictable market

    One of the significant challenges of the currency market is that it is very unpredictable in the short run. Any number of factors can come into play in determining the strength of a specific currency. A currency tends to become more valuable when the demand for it exceeds available supply. A number of factors can affect the exchange rate. For example, the dollar may be more attractive to others if interest rates here are higher and bond investors can gain a yield advantage by putting their money in bonds from U.S. issuers. Currencies may also thrive if a nation’s economy is strong (relative to other world markets) and business activity is high.

    But movements in currency values can also be affected by the actions of speculators who may try to take actions that affect the short-term direction of the exchange rate.

    Overall, it is important to understand that the changing value of the dollar is a factor to consider when investing in global companies or purchasing foreign products, though the risk associated may not be largely influential.

    For more information, please contact Michael W. Yee at (808) 952-1240.
    Advisor is licensed/registered to do business with U.S. residents only in the states of Hawaii. Brokerage, investment and financial advisory services are made available through Ameriprise Financial Services, Inc. Member FINRA and SIPC. Some products and services may not be available in all jurisdictions or to all clients.© 2010 Ameriprise Financial, Inc. All rights reserved.

    What does this all mean? You hear it regularly in the news: “The dollar rose today against other major currencies,” or “The dollar lost ground today on foreign exchange markets.” Just like stocks or bonds, currency’s value can fluctuate in comparison to each other on a daily basis. For example, at the start of 2011,…

  • Legal: Transfer Tax Ideas for 2012

    This year, many of us will be focusing on two things - the shrinking federal estate and gift tax “coupon” and the radical jump in transfer tax rates. The “coupon” is the amount that the Internal Revenue Code allows you to give away without having to pay gift taxes during your lifetime or estate taxes after you are gone. “Transfer taxes” include gift taxes, estate taxes and taxes on generation-skipping transfers. A generation-skipping transfer is a transfer by or gift or at death to someone who is two or more generations younger than the transferor.

    The Code grants each one of us a $5.12 million coupon for gifts made, or people who die, in 2012. In other words, the first $5.12 million given away this year can pass tax free. As of January 1, 2013, however, the Code says that the coupon shrinks to $1 million. At the same time, the federal transfer tax rate goes from 35% to 55%. Clearly, we are scheduled for a huge tax increase. The only thing that will avert it is an act of Congress by the end of the year.

    If you have an estate worth more than $1 million and you are not fond of paying taxes, you should consider some gifting strategies for 2012 - preferably strategies that will put you in no worse position whether the scheduled tax increase kicks in or not. Here are some ideas.

    Name a charity as beneficiary of your IRA. The bad thing about traditional IRAs is that if you die owning them, your beneficiaries may have to pay both income and estate taxes on anything they receive from your accounts. To avoid this double taxation, you can name one or more charities to receive some or all of your retirement plan benefits, and that way you can save some taxes and send money where you think it will help the most.

    Make annual exclusion gifts. The Code allows each of us to make tax-free gifts of up to $13,000 worth of assets, per transferee, per year. Thus, you can give each of your children, grandchildren, or other beneficiaries $13,000 worth of assets each and every year without even having to let the IRS know about those gifts. It is not hard to imagine how a coordinated gifting program could reduce or eliminate estate taxes for even fairly substantial estates. Every tax-free gift reduces the amount that will be subject to estate tax later on.

    Make qualified transfers. Another form of tax-free gift is the “qualified transfer.” This is where you pay school tuition or medical expenses on behalf of a child, grandchild or other loved one. As long as you pay the tuition directly to the school, or pay the medical bill directly to the provider, these gifts are completely ignored for gift tax purposes – and you can make them on top of your annual exclusion gifts.

    This article just scratches the surface of planning possibilities for 2012, so you should talk with your trusted advisors soon if you think it makes sense to give away some of your wealth during your lifetime.

    For more information about Scott and his law firm, Est8Planning Counsel LLLC, visit www.est8planning.com.

    This year, many of us will be focusing on two things - the shrinking federal estate and gift tax “coupon” and the radical jump in transfer tax rates. The “coupon” is the amount that the Internal Revenue Code allows you to give away without having to pay gift taxes during your lifetime or estate taxes after you…

  • Legal: Make It Personal

    In planning our estate, we often spend much of our energy on deciding how to distribute the home and the cash, and we often overlook the personal items. In my practice, I see families distributing large sums of money and real estate rather smoothly. Then, when it comes to personal property, family conflict arises. From an outsider’s perspective, it can seem somewhat ridiculous - fights over a couch, a ceramic pot or a blanket.

    However, once memories and emotion are added to the picture – such as the family sitting on the couch enjoying each other’s company watching a movie or playing music together; or that we had made that ceramic pot in school and had given it to our parents; or that our grandmother, while in the hospital just prior to her passing, had painstakingly hand-quilted the blanket – they can carry great sentimental value.

    Psychologist Steven Hendlin, in his book, Overcoming the Inheritance Taboo, writes that because the personal property holds the memories of our loved ones who have passed away, we want to hold onto these items. Often, Hendlin says, it is the fear of forgetting our loved one that drives the desire for a particular object. And, the consequence may be huge - many family members risk their relationship with another family member over an object that often possesses no financial value. Parents would not wish to see their children fighting over personal objects.

    Knowing that conflict can easily surface over personal assets, what can we do? The State of Hawai‘i allows us to write down our wishes in a separate writing, often referred to as a Personal Property Memorandum. You simply make a list of your personal items, designate the beneficiary, and sign and date it.

    After you prepare the memorandum, talk to your family about the list. The family discussion can help provide clarity and reduce the chance of any misunderstanding.

    And, finally, these family heirlooms that connect us to our loved ones often come with a story. One priceless gift we can give to our children, our siblings and to our children, is to relay the story about the heirloom, preferably in writing.

    When my mother passed away, my brothers and I put all of the personal items onto a table with the hope of taking turns telling a story about each of the items. Sadly, very few stories were told. We didn’t know the reason why my mother or father kept a particular personal item, or even whether it came from upstate New York where my mother is from, or from Hawai‘i, where my father is from. My office provides what we call “My Heartfelt Will” to our clients to write down these stories, so we don’t risk losing them.

    So, when making your estate plan, remember to pay attention to the personal property as doing so can reduce confusion and conflict, promote family harmony, and preserve family history.

    For information contact Stephen B. Yim, Attorney at Law at (808) 524-0251, stephenyimestateplanning.com.

    In planning our estate, we often spend much of our energy on deciding how to distribute the home and the cash, and we often overlook the personal items. In my practice, I see families distributing large sums of money and real estate rather smoothly. Then, when it comes to personal property, family conflict arises. From…

  • Be An Aware Consumer – Avoid Being Scammed

    It’s no secret that con-artists go where the money is. That means that schemers and scammers target citizens who are retired or who are about to retire who have been accumulating money through their retirement plans, real-estate and their personal bank accounts.

    The truth is that we are all at risk. Nevertheless, you can help protect your family and friends by knowing how scammers work and by reporting fraudulent investment sales pitches and other scams to the authorities. The key is to recognize these offers that sound too good to be true. Con-artists are very adept at coaxing and altering their pitches to the profiles of their victims. They often ask casual questions about hobbies, health, family and political beliefs. Once they identify a way in, they will overwhelm you them with various tactics in an attempt to defraud them of money. The two most common tactics are:

    The get rich quick tactic: This tactic tries to persuade you that with “this investment” you will obtain something you want but cannot have. For example, a scammer might guarantee you that a business opportunity will produce a monthly income of $4,000 guaranteed!

    The credibility tactic: This tactic tries to attain credibility by claiming to belong to a respected group or having a certain experience or special connection.

    Claims of endorsement or affiliation: The scammer may claim to be endorsed by a state or federal agency, or the Better Business Bureau, agencies that do not endorse private companies.

    A couple of things you can do to prevent becoming a victim of these types of frauds are to take control and ask questions. Remember that any legal investment agent must have specific types of licensing. Your Better Business Bureau has Business Reviews on thousands of businesses which contain licensing and complaint information. Verify any information that is given you with another source and practice saying “No” and “I am not interested”.

    Hawai‘i’s BBB works to help prevent fraudulent, deceptive and unfair business practices in the marketplace and to provide information to help consumers spot, stop, and avoid scams.

    Better Business Bureau - Generations Magazine - April-May 2013

    It’s no secret that con-artists go where the money is. That means that schemers and scammers target citizens who are retired or who are about to retire who have been accumulating money through their retirement plans, real-estate and their personal bank accounts. The truth is that we are all at risk. Nevertheless, you can help…

  • Financial: Time For You To Refinance?

    According to research done by Freddie Mac, the average rate on a 30-year mortgage in the U.S. dropped below 4% for the first time ever in 2011. Rates on shorter-term, 15-year mortgages are even lower.

    For some, this creates a great opportunity to refinance the mortgage. But it’s not the right decision for everyone. Here are four questions to consider:

    1. How much equity do you have?

    Refinancing may be a priority for homeowners with disadvantageous loan terms or who owe more on their home than it is worth. But these situations can make it difficult to qualify for refinancing. Consult with your mortgage company about whether a different financing package can be structured for your home.

    If you do have equity in your home, it’s possible to structure a payment that may be dramatically lower than your current monthly mortgage. If the amount of equity is not much different than the current value, the payment will be closer to what you already have, but would likely be an improvement due to the recent decline in interest rates.

    2. Why do you want to refinance?

    Locking in a historically low rate can be appealing, but if you are within a few years of paying off your mortgage, it may not make sense for you to re-start with another 15- or 30-year mortgage.

    3. Are you in a position to refinance?

    If you have run into credit problems, refinancing may not be as easy as it used to be. Households need to have a sufficient credit score — usually 700 or higher — to qualify for a conventional mortgage.

    Employment status could be another factor. A number of Americans, some involuntarily, have recently left the workforce and started their own business. If you don’t have an established record of income, it might be difficult to obtain a new mortgage. Ask your mortgage company whether it’s worthwhile for you to pursue the mortgage application process.

    4. Determine the terms that suit your needs

    The final question is whether to opt for a 15-year or 30-year mortgage. An adjustable-rate mortgage is also an option, but since the terms of those loans are subject to change.

    If your primary goal is the lowest possible payment, a 30-year loan makes sense. If your focus is to reduce debt and accumulate wealth, a shorter-term loan may be better; the total interest paid on a 15-year loan will be significantly lower than with a 30-year mortgage. While monthly payments will be higher, a 15-year loan offers more long-term advantages for these homeowners since the financial obligation of a mortgage will no longer exist after 15 years, allowing you to concentrate on retirement or education savings.

    If you decide to refinance, be sure to compare costs of different lenders. The breakeven point on the cost of the loan (the number of years you need to keep the mortgage before the costs of obtaining a new loan are overcome) is a critical measure of whether refinancing is a worthwhile move for you.

    For more information, please contact Michael W. Yee at (808) 952-1240. Advisor is licensed/registered to do business with U.S. residents only in the states of Hawaii. Brokerage, investment and financial advisory services are made available through Ameriprise Financial Services, Inc. Member FINRA and SIPC. Some products and services may not be available in all jurisdictions or to all clients.© 2010 Ameriprise Financial, Inc. All rights reserved.

    According to research done by Freddie Mac, the average rate on a 30-year mortgage in the U.S. dropped below 4% for the first time ever in 2011. Rates on shorter-term, 15-year mortgages are even lower. For some, this creates a great opportunity to refinance the mortgage. But it’s not the right decision for everyone. Here…