Category: Wisdoms

Communication & Grief

Grief is a natural response to the loss of someone special. The process of grieving allows the griever to adapt to a new world of existence without the loved one.

The success rate of an estate plan reflects and reveals the need for the estate planning attorney to expand his or her skill set in benefit of each client. Rather than simply focusing on lineal legal and tax matters, the estate planning attorney can incorporate counseling skills and engage the client through a virtuous circle of communication, so that the client and his or her survivors can proceed through the natural grieving process, which begins with anticipatory grief.

If allowed to proceed through the grieving process with minimal guilt, anxiety, stress, unresolved issues with the decedent and conflict, we can help each griever experience fully their grief and allow the griever to validate and honor the life of the deceased, and affirm and strengthen relationships with survivors.

The sooner the planning begins, the more options exist to minimize the risk of conflict among family members. Maintaining open communication maintains trust, and thereby reduces resentment and conflict.

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

Grief is a natural response to the loss of someone special. The process of grieving allows the griever to adapt to a new world of existence without the loved one.
Hawai‘i Lawyers Helping Seniors

Fifteen years ago, the Hawai‘i State Bar Association created the Senior Counsel Division (SCD). Its members are Hawai‘i attorneys who are 50 years of age or older (which is over half the Hawai‘i State Bar), and number in the thousands.

The OWLs (older, wiser lawyers) who make up the SCD are the most experienced and knowledgeable attorneys in the state. We have a responsibility to share this expertise with others in our profession and with the kupuna in our island home. Therefore, the purpose of SCD is to help older lawyers practicing in Hawai‘i and our kūpuna in the community, as well.

This help has ranged from providing legal information to the public to participating in community service projects.

For example, SCD has organized and recruited volunteers to help the Hawai‘i Foodbank with its Senior Food Box Packing Program—a critical service for low-income seniors. Thousands of boxes have been packed for seniors on O‘ahu and the neighboring islands.

SCD has also hosted legal clinics and staffed ask-a-lawyer type information tables at various senior fairs and events around the state. SCD has appeared at the Palolo Learning Center and the Hawai‘i Agricultural Conference at the Hawai‘i Convention Center. Recently, SCD joined Generations Magazine and over 20 other senior service providers at Windward Mall for the Generations Senior Fair in February.

One of SCD’s major activities is its monthly Coffee Hours. During these events, experts from various sectors of senior interests share valuable knowledge and experiences in their respective fields of expertise. The topics that have been addressed in past Coffee Hours have included Blue Zone diet cooking, treating Alzheimer’s, asset protection planning, Medicare and how missing deadlines can drain your savings, financial elder abuse, economics of aging in Hawai‘i, preventing
cognitive decline, and senior residential living facilities and when to place a loved one there.

This year, topics will include condominium law, HOAs and rights of residents; Social Security; Grey Divorce (issues surrounding divorcing later in life); Honolulu Prosecutor’s efforts to keep our island safe and caregiving mediation.

These presentations are open to the public and can be attended either in person at our offices in downtown Honolulu, or can be watched live on Zoom (call or email for a link). Past shows are also available on YouTube.

HAWAI‘I STATE BAR ASSOCIATION
Senior Counsel Division
Alakea Corporate Tower, 1100 Alakea St., Ste. 1000
Honolulu, HI 96813
808-537-1868 | SCD@HSBA.org | HSBA.org

Fifteen years ago, the Hawai‘i State Bar Association created the Senior Counsel Division (SCD). Its members are Hawai‘i attorneys who are 50 years of age or older (which is over half the Hawai‘i State Bar), and number in the thousands.
Covering Your Assets

Think of asset protection planning as a game. Follow the rules and you may avoid detours through lawyers’ offices and courtrooms.

Rule 1: What you can touch, your creditors can touch. A creditor might be a business partner, someone you clipped with your car or an ex-spouse. The planning response to Rule 1 is to limit your own access to your stuff just enough to keep your creditors’ mitts off of it, while allowing you pretty much full use and enjoyment of it.

Rule 2: Liability exposure flows two ways—toward your stuff and away from your stuff. Liability flowing toward your stuff: Somebody sues you because you creamed them with your car, so he or she gets a court order compelling the sale of your beautiful beach house in order to pay down the judgment against you.

An example of liability flowing away from your stuff: Somebody rents your beach house and is injured falling through the floorboards because you didn’t maintain the structure properly. Your tenant sues you, gets a $1 million judgment, takes your $450,000 beach house, and then wants to force a sale of your home or your business to pay off the rest of the judgment.

So the planning response to Rule 2 is to build walls between your assets and not let any of your assets slosh over them. Building the right walls is the essence of asset protection planning.

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

Think of asset protection planning as a game. Follow the rules and you may avoid detours through lawyers’ offices and courtrooms.
Insurance You May Not Realize You Need

Insurance is a product for the what-ifs in life. A good insurance policy can reduce the financial impact of an adverse event, mitigate financial losses, provide stability and offer some peace of mind during difficult times. Some insurance coverage is deemed so important, it’s mandated by law. But there is also lesser-known insurance coverage worth exploring. Consider these optional coverages to trade uncertainty for financial protection.

Homeowner riders. If you have a mortgage, homeowner insurance is required. A basic homeowner policy provides standard reimbursement after a deductible for approved claims due to theft or damage to your property, dwelling, personal possessions and liability. Such coverage, however, may not be sufficient. If you have valuable art or jewelry in your home, a rider can ensure appropriate reimbursement if these items are stolen or damaged. Consider a rider to offset the liability of owning a swimming pool or trampoline, for example. Other common riders cover water damage, identity restoration and business assets (if you conduct business in your home).

Renters insurance. If your personal property is stolen or damaged at a rented house or apartment, you may be out of luck unless you carry your own renters insurance. Look for a policy that includes liability coverage, which provides financial protection in case someone gets hurt at your rented residence.

Travel insurance. You may want to explore travel insurance before an international trip. A policy that covers unexpected cancellations is reassuring when planning an expensive vacation with non-refundable reservations. A policy that provides international medical coverage can be a real lifesaver since most US health insurance plans do not reimburse for care provided outside the country. The most comprehensive travel policies include reimbursement for medical evacuation and repatriation of remains.

Appliance insurance. Many utility companies offer affordable insurance plans to cover needed appliance maintenance and repairs. Coverage is usually available for major appliances, including your refrigerator, stove, dishwasher, furnace, water heater, washer, dryer and air conditioner.

Pet insurance. Veterinary care can be expensive. A pet insurance policy can help pet owners manage the cost of owning a pet. Most policies do not cover wellness care but do cover all or part of the expense for emergency procedures and major medical interventions.

Life insurance riders. Basic life insurance pays out for death from natural causes and most accidents. There are exceptions, however. Insurance companies generally exclude coverage for risky activities. If you participate in extreme sports or own a private plane, you may want to purchase a life insurance rider.

Review your insurance coverages annually or when you experience a life-changing event. Be sure to comparison shop as insurance policies can vary widely in coverage and cost. A trusted financial advisor can be a great resource to help you determine if you carry sufficient levels of insurance or if additional coverage is warranted.

MICHAEL W. K. YEE, CFP,® CFS,® CLTC, CRPC®
1585 Kapiolani Blvd., Ste. 1100, Honolulu, HI 96814
808-952-1240 | michael.w.yee@ampf.com
ameripriseadvisors.com/michael.w.yee
Michael W. K. Yee, CFP®, CFS®, CLTC, CRPC ®, is a Private Wealth Advisor, Certified Financial Planner ™ practitioner, with Ameriprise Financial Services, LLC in Honolulu, HI. He specializes in fee-based financial planning and asset management strategies and has been in practice for 40 years. Investment products are not insured by the FDIC, NCUA or any federal agency, are not deposits or obligations of, or guaranteed by any financial institution, and involve investment risks including possible loss of principal and fluctuation in value. Investment advisory products and services are made available through Ameriprise Financial Services, LLC, a registered investment adviser. Ameriprise Financial Services, LLC. Member FINRA and SIPC.
© 2023 Ameriprise Financial, Inc. All rights reserved.

Insurance is a product for the what-ifs in life. A good insurance policy can reduce the financial impact of an adverse event, mitigate financial losses, provide stability and offer some peace of mind during difficult times. Some insurance coverage is deemed so important, it’s mandated by law. But there is also lesser-known insurance coverage worth…
Minimize Asset Distribution Drama

Minimizing estate asset distribution conflicts among survivors proves to be a challenging consequence of death. Hard-to-divide assets such as a family heirloom or the family home can cause the fracturing of relationships.

Consider the family home left to several children. The home may have been in the family for generations. Parents live in the family home without arguing about whether to sell or rent it because they share the common goal of living in the home. Consider leaving the home equally to four children and the common goal disappears. One child needs to sell the home to pay for tuition. Another child could use income by renting the house. One child wants to live in the home. Another child wants to keep the home as a place for the family to gather.

Finally, consider a parent’s strong desire to provide shelter for surviving children, and that due to the housing prices and high cost of living, the surviving children cannot afford to purchase a home on their own.

While addressing these concerns extends beyond the scope of this article, keep in mind that estate planning attorneys can help clients understand the challenges facing them and can also aid them in beginning to create an intentional plan to leave a legacy that will help make family members’ lives better while preserving familial relationships.

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

Minimizing estate asset distribution conflicts among survivors proves to be a challenging consequence of death. Hard-to-divide assets such as a family heirloom or the family home can cause the fracturing of relationships.
What’s in YOUR Toolbox?

Trusts are tools. Like screwdrivers, they come in a variety of sizes and shapes, each designed to accomplish a defined result. You need a screwdriver with a tip that looks like a straight line for a screw with a head that has a straight slot in it. You need a screwdriver with a tip shaped like a plus symbol for a screw that has a head with a plus-shaped recess.

There are other kinds of screwdrivers and screws, but you get the point. You need the right set of tools in order to complete your project efficiently and well. However, not every home improvement project calls for a screwdriver and not every estate plan calls for a trust.

Common Types of Trusts

Just as there are many kinds of screwdrivers in a well-stocked toolbox, there are lots of different kinds of trusts.

You can create a trust that works during your lifetime or one that will not take effect until after you are gone. Your trust can be revocable or irrevocable, charitable or private.

The agreement that governs your trust can control not only the disposition of your assets, but impose your values and your wishes upon your beneficiaries. But don’t get too excited about that last point. A trust can encourage your kids to go to college and stay away from drugs and booze, but it can’t guarantee your kids will actually go to class, or be clean and sober.

Probably the most common trusts are revocable living trusts, which can provide comprehensive solutions for probate avoidance and for sidestepping conservatorship if you become incapacitated. Probate is a proceeding that typically occurs when an individual dies. The probate process can be long and costly. But a revocable trust can avoid probate in its entirety.

Trusts can also protect beneficiaries from creditors, ex-spouses, and their own bad habits or inability to hold on to money.

Talk with your estate planning advisors about how trusts can help you and your family avoid a variety of problems and pitfalls that await unwary travelers along life’s highway.

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

Trusts are tools. Like screwdrivers, they come in a variety of sizes and shapes, each designed to accomplish a defined result. You need a screwdriver with a tip that looks like a straight line for a screw with a head that has a straight slot in it. You need a screwdriver with a tip shaped…
Before Cosigning Your Child’s Loan…

As your child heads off to college or starts life as an independent young adult, he or she will likely face new financial responsibilities, such as a car purchase, rent or college tuition payments. Given their lack of credit history, it may be difficult for them to obtain a loan without a parent or another adult cosigning the loan. Your natural inclination may be to help them out and sign the dotted line, but before you do, make sure you’re clear on the terms of the loan and what it may mean for your finances.

Cosign with your eyes wide open

Even though you may not consider it “your loan” if you cosign, lenders will identify you as one of the borrowers. That means you may be at risk if different circumstances arise. Keep in mind:

• If any of the balance remains unpaid by the borrower (in this scenario, your child), you as the cosigner will be required to repay it.
• If your child defaults or even misses one or two payments, it can damage your credit record.
• Even without a default, other lenders may look on the cosigned loan as an additional liability you will need to pay, which could also affect your credit record.
• In some states, the creditor has the right to collect payment from you, as the cosigner, without first trying to collect from your child.
• If you were to pass away, it could trigger “auto default” provisions in the loan contract. This would require your child to immediately pay the debt. Regulators discourage this practice, but it still exists in some loan agreements.

Steps to protect your position

Fortunately, there are often alternatives to cosigning a loan. For example, if your child is enrolled in college, he or she may be eligible for federal student loans or financial aid. Another option, if you can afford it, may be to lend your child money directly — thereby forgoing the paperwork and stipulations introduced by a third-party lender. If you decide to take this action, make sure you and your child have a clear and consistent understanding of the terms of the loan, including a repayment schedule that he or she will be accountable for sticking to. If you do decide to cosign a loan, take steps to help protect yourself:

• Read the fine print and understand the terms of the loan and the expectations of the lender.
• Avoid pledging property, such as a car, to secure the loan, as it could create additional risk.
• Arrange to receive duplicate copies of all paperwork and ensure you have complete online access to the account so you can stay on top of your child’s record of repayment.

In short, treat the situation with the same diligence that you would if you were borrowing money yourself. Do what you can to ensure your potential act of generosity doesn’t impair your ability to obtain credit in the future.

MICHAEL W. K. YEE, CFP,® CFS,® CLTC, CRPC®
1585 Kapiolani Blvd., Ste. 1100, Honolulu, HI 96814
808-952-1240 | michael.w.yee@ampf.com
ameripriseadvisors.com/michael.w.yee
Michael W. K. Yee, CFP®, CFS®, CLTC, CRPC ®, is a Private Wealth Advisor, Certified Financial Planner ™ practitioner, with Ameriprise Financial Services, LLC in Honolulu, HI. He specializes in fee-based financial planning and asset management strategies and has been in practice for 40 years. Investment products are not insured by the FDIC, NCUA or any federal agency, are not deposits or obligations of, or guaranteed by any financial institution, and involve investment risks including possible loss of principal and fluctuation in value. Investment advisory products and services are made available through Ameriprise Financial Services, LLC, a registered investment adviser. Ameriprise Financial Services, LLC. Member FINRA and SIPC.
© 2023 Ameriprise Financial, Inc. All rights reserved.

As your child heads off to college or starts life as an independent young adult, he or she will likely face new financial responsibilities, such as a car purchase, rent or college tuition payments. Given their lack of credit history, it may be difficult for them to obtain a loan without a parent or another…
Dealing With Details While Grieving

With death comes grief, the natural emotional response to losing someone meaningful. With death comes a myriad of complexities that grievers face that can significantly interfere with the natural progression of grief and adaptation to a new life without the significant other person. These complexities, which we call “estate administration,” include:

1) making funeral and memorial service arrangements
2) inventorying the decedent’s assets and debts, and paying all last expenses and taxes
3) locating the decedent’s estate plan and following through on the decedent’s wishes regarding the disposition of assets

Estate Administration While Grieving

Estate administration happens during the grieving period when grief can be most pronounced, and the grievers must continue with their own lives. Grievers not only grieve on an individual level, but must collaborate and cooperate with other grievers during this estate administration. Conflict can easily arise due to differences of opinion among the grievers as to how to arrange the decedent’s affairs, and past relational wounds and differences tend to surface.

If the decedent’s family’s history in terms of conflict-resolution was one of collaboration, listening and fairness in coming to an agreement while preserving relationships, and when a decedent establishes an estate plan that clearly communicates intentions and instructions, the stress and anxiety that often accompany grief will be greatly minimized. Properly preparing one’s estate plan in this manner allows the survivors to experience the natural grieving process with reduced stress, guilt and conflict.

Hard feelings among survivors can result simply from the way each person processes grief. In G. Scott Budge’s article “Grief and Estate Settlement,” he introduces two main types of grieving styles — instrumental and intuitive. As more task-oriented, the instrumental griever will want to work on the estate administration paperwork and get things completed.

Hard-pressed to take action, the intuitive griever may not want to take any action, and instead spend time emotionally contemplating and feeling the loss of a loved one. The risk is that one may perceive the instrumental griever as cold-hearted and the intuitive griever as lazy. So for the benefit of all, prepare an estate plan that minimizes the potential for conflict.

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

With death comes grief, the natural emotional response to losing someone meaningful. With death comes a myriad of complexities that grievers face that can significantly interfere with the natural progression of grief and adaptation to a new life without the significant other person. These complexities, which we call “estate administration,” include: 1) making funeral and…
I’m a Trustee… Now What?

Inheriting property can be both a gift and challenge. As a trustee, you’re not just receiving real estate, you’re inheriting family responsibilities, property maintenance and tax implications. In Hawai‘i, the complexity increases given the unique real estate landscape. So what options can maximize the potential of your inheritance?

Consider the 1031 Exchange, which permits trustees to swap inherited investment properties for another “like-kind” property while deferring capital gains taxes in the process. This tool can be immensely advantageous for trustees, allowing them to diversify an inherited portfolio, enhance investment value, ensure a more consistent cash flow and increase recession resiliency.

The 1031 Exchange can be pivotal in real estate planning. While there are essential criteria to meet (the property, for instance, must be for investment and not a primary residence), the benefits can be significant. However, given the tight windows for property identification (45 days) and purchase completion (180 days), expert guidance is crucial. Working with an experienced real estate planning team can lead to informed and lucrative decisions. If you’re a trustee uncertain about your options, the 1031 Exchange can offer you solutions to reach your goals.

THE IHARA TEAM OF KELLER WILLIAMS HONOLULU
(RB-21303)
1347 Kapiolani Blvd. #300, Honolulu, HI 96814
808-427-3006 | ihara@iharateam.com
iharateam.com
Each office independently owned and operated.

Inheriting property can be both a gift and challenge. As a trustee, you’re not just receiving real estate, you’re inheriting family responsibilities, property maintenance and tax implications. In Hawai‘i, the complexity increases given the unique real estate landscape. So what options can maximize the potential of your inheritance? Consider the 1031 Exchange, which permits trustees…
What’s Wrong With Probate?

Probate can be a simple, painless process. Sometimes, however, it can be a nightmare, and that’s what gives it a bad name. Probate just means “to prove.” Your personal representative has to prove to the court that the document being offered for probate is your last will. Probate begins with your personal representative filing your will with the court, along with your death certificate and a petition asking the judge to recognize your will as your last will and testament. The petition also asks the court to give your personal representative the authority to carry out its terms.

Once the petition is filed, copies of it and your will must be sent to just about all of the people who could be affected by your will. Those people include not only the individuals named in your will, but also the people who, by law, would have gotten your stuff if you died without a will. So the first thing probate does is provide a venue (for larger estates, a colosseum) for a fight.
If that doesn’t sell you on the benefits of probate avoidance, consider this. Probate is a public proceeding. That means that anybody who wants to can go to the probate court, obtain copies of your will, and gather other sensitive and personal information about you, your stuff, and your family members, and then do who-knows-what with that information. If you and your loved ones value privacy — and you should — then probate is an awfully good thing to avoid. The public nature of probate all by itself should deter most people from subjecting their loved ones to it.

Some years ago, the Last Will and Testament of Michael Jackson appeared on the internet. Once the King of Pop’s will was filed in court, somebody downloaded a copy and posted it on the internet. Do you want your will to be the next online “Thriller” or would you prefer to tell the internet trolls to “Beat It?” So, probate can take a long time, be expensive and publicize things that are best kept private. Read my next article for more about avoiding probate.

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

Probate can be a simple, painless process. Sometimes, however, it can be a nightmare, and that’s what gives it a bad name. Probate just means “to prove.” Your personal representative has to prove to the court that the document being offered for probate is your last will. Probate begins with your personal representative filing your…
Do You Have Retirement Questions?

Most hardworking Americans dream about retirement, but the path to get there can be less than clear. For those relatively new to the workforce, the idea of retiring may feel distant and abstract. However, even people who are only a few years from retirement are often perplexed by the decisions they face. While everyone’s journey is different, I know from my years of experience as a financial advisor that there are common themes when it comes to questions about retirement.

For example, those who just started their careers and have decades before retirement may wonder:

■ “With all my current financial priorities, why should I worry about saving money for retirement?”

The sooner you start saving for retirement, the greater the opportunity for your money to grow. If you are in your twenties or thirties, you may not have as many assets as those who have been in the workforce for decades. What you do have is time, and that can be a powerful ally. Time allows you to take full advantage of the opportunity to compound growth in your investments. Even modest investment amounts that have years to potentially grow can make a significant difference in your retirement savings.

■ “How much should I save for retirement?”

A reasonable goal is to save 10% of your pre-tax income in retirement savings vehicles. If you have the option, strongly consider directing a portion from your paycheck to a 401(k) or another workplace savings plan. If your employer offers a matching contribution, even better. That’s essentially “free money” that you don’t want to miss out on. If you have additional discretionary income beyond that, you may want to save it in a Roth IRA, which could help you build retirement savings with after-tax dollars and create potentially tax-free income in the future.

On the other hand, if retirement is in your near future, you may be pondering these questions:

■ “Should I pay off my home mortgage early?”

Paying off your mortgage may seem like a great idea, and if you’re like a lot of near retirees, the prospect of eliminating debt and reducing your monthly expenses may be appealing. But there are a variety of factors to consider. One of the biggest is the cost and potential tax consequences of moving a large sum of money out of an existing investment in order to pay off your mortgage. If the interest rate you pay on your mortgage is low, you may want to keep that money invested and continue making mortgage payments.

Also, holding a mortgage is key to many Americans’ tax strategy because the interest paid could potentially be tax-deductible. If mortgage interest is part of your tax strategy, consult with your tax professional before making the decision to own your home outright.

■ “How will I know if I saved enough money?”

The answer to this question will depend on your retirement dreams and current financial situation. The variables that come into play include the amount of money you’ll need to cover your expenses each year and other sources of income you have (a pension or Social Security). Most people should be prepared to spend several decades in retirement. A financial plan can help you test different assumptions based on an appropriate retirement date.

■ “Will Medicare cover my healthcare costs in retirement?”

Healthcare is one of the largest expenses most retirees incur in their later years and Medicare only covers a portion of healthcare expenses. Medicare is broken up into different parts. Part A is offered at no cost, but mainly covers only expenses related to hospitalization. Part B requires a monthly premium, but makes medical services such as care from a doctor or tests more affordable. Part C is an alternative type of Medicare coverage provided through private insurers at a cost. Part D is a prescription program that helps reduce the price of drugs. Medicare Supplement coverage is another form of coverage that charges a premium, but helps reduce out-of-pocket medical expenses.

■ “At what age should I begin to collect Social Security?”

This varies by person. The earliest you can qualify to begin collecting Social Security retirement benefits is age 62. The longer you wait, the larger your benefit will be. The highest monthly benefit you can earn occurs when you reach age 70. If you continue to work, it may make sense to delay taking Social Security. When you retire, you’ll need to weigh the value of delaying Social Security against the cost of taking money out of your personal savings to make up the difference.

Whether retirement is a year away or decades down the road, it’s important to craft a plan for how you will build your nest egg and fund your retirement dreams. If you have questions or want to discuss your personal situation, consult your financial advisor, estate planner and tax professional for expert guidance.

MICHAEL W. K. YEE, CFP,® CFS,® CLTC, CRPC®
1585 Kapiolani Blvd., Ste. 1100, Honolulu, HI 96814
808-952-1240 | michael.w.yee@ampf.com
ameripriseadvisors.com/michael.w.yee

Michael W. K. Yee, CFP®, CFS®, CLTC, CRPC ®, is a Private Wealth Advisor, Certified Financial Planner ™ practitioner, with Ameriprise Financial Services, LLC in Honolulu, HI. He specializes in fee-based financial planning and asset management strategies and has been in practice for 39 years. Ameriprise Financial, Inc. and its affiliates do not offer tax or legal advice. Consumers should consult with their tax advisor or attorney regarding their specific situation. Investment products are not insured by the FDIC, NCUA or any federal agency, are not deposits or obligations of, or guaranteed by any financial institution, and involve investment risks including possible loss of principal and fluctuation in value. Investment advisory products and services are made available through Ameriprise Financial Services, LLC, a registered investment adviser. Ameriprise Financial Services, LLC. Member FINRA and SIPC. © 2023 Ameriprise Financial, Inc. All rights reserved

Most hardworking Americans dream about retirement, but the path to get there can be less than clear. For those relatively new to the workforce, the idea of retiring may feel distant and abstract. However, even people who are only a few years from retirement are often perplexed by the decisions they face. While everyone’s journey…
Genius Tip: Designing Your Game Plan

Albert Einstein famously said that an intellectual solves problems, while a genius avoids them. Here is an example of how you should employ this mindset when you put your estate plan in place. One of the most important things you will do is name your substitute decision-makers. These are the people who will step in upon your incapacity or death to make decisions about things like your healthcare, your living arrangements, how your assets will be managed, and where your assets will eventually go.

Remember this about the successor trustees and other fiduciaries you name in your estate planning documents: Up until they take office, they are nominees, not appointees. Until you become incapacitated or die, your nominees are like the bench on a sports team. Players sitting on the bench are there to step into the game if called upon, but they do not actually participate in the game until the coach calls their numbers. The coaches on your estate planning team are your trusted advisors. They are on your sideline to advise you and your loved ones, but generally, your coaches will not enter the game themselves.

When you become incapacitated or die, your nominees must decide whether to accept their nominations or not, and they have no legal obligation to “get off the bench.” For that reason, you should talk with your intended nominees before you nominate them, to make sure they are willing to “play ball,” and you should check in with them from time to time to confirm they are still on board with being integral members of the team who will advance your estate planning when you are no longer able to “be in the game.”

Throughout the process of designing your estate plan, you should constantly ask yourself, “what can I do, and how should I plan to avoid the problems that will someday smack me and my ‘ohana in the face unless I provide a solution beforehand?” Only this way can you avoid the problems that the intellectuals in your family will have to solve upon your death or incapacity.

SCOTT MAKUAKANE, COUNSELOR AT LAW
Author of Est8Planning for Geniuses
808-587-8227 | maku@est8planning.com
est8planning.com

Albert Einstein famously said that an intellectual solves problems, while a genius avoids them. Here is an example of how you should employ this mindset when you put your estate plan in place.