Category: Wisdoms

Grief & Bereavement — Part IX

In the last article we introduced and discussed the process of the virtuous circle of communication. In this article we will discuss how to communicate in a family meeting. Often conversations with family are well-intended, however the conversation can become caustic if approached with accusation and blame. Family members will tend to shut down and/or become defensive, thereby losing the opportunity to express themselves. This can further damage family relationships.

Before beginning a family meeting, ground rules must be established. If at any time the meeting is not safe or productive, then the meeting should pause so that family members can take a time out. Once everyone is willing to adhere to the ground rules, the discussion can be resumed. Communicating is not an easy task, especially when discussing a highly emotional topic with family.

In Marshall Rosenberg’s book, Nonviolent Communication, he offers a process where families engage in family meetings using four components: observation, feelings, needs, and requests.

1) OBSERVATION. Rosenberg writes with respect to observation: “First, we observe what is actually happening in a situation: What are we observing others saying or doing that is either enriching or not enriching our lives? The trick is to be able to articulate the observation without introducing any judgment or evaluation.”

2) FEELINGS. The second component is to express how one is feeling. At first glance, this may appear to be simple. However, most people can express only a limited number of feelings. The book’s author provides a helpful list of words that express feelings that can be used instead of comparable words that do not express feelings.

3) NEEDS. Once we can clearly express our feelings, we want to express our needs. Rosenberg explains that, when we are expressing feelings such as hurt, sadness and anger, what it really means is that our needs are not being met. And, if we want to communicate clearly and deeply, we will want to determine what the unmet need is that is causing these feelings.

4) REQUESTS. The final component of nonviolent communication is to make positive requests, meaning we ask for actions that might fulfill our needs. Rosenberg suggests making requests in a positive manner. Rather than saying “I don’t want you to … ,” say “I would like you to … .” Request specific actions rather than asking for a change in others’ general behavior.

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

In the last article we introduced and discussed the process of the virtuous circle of communication. In this article we will discuss how to communicate in a family meeting.
No Kids? 5 Tips for Your Retirement

Many people build their retirement and estate plans around their children and grandchildren. Everything from where they live, to how they spend their time and money, to the legacy they want to leave behind is considered through the prism of their role as parents and grandparents. For those without kids and grandkids, a different formula may apply as these individuals may have more financial freedom and flexibility as they enter retirement and beyond. But they still need to be as vigilant — if not more — about planning for their later years.

Prioritize saving for retirement

Since you’re not facing the costs for childcare and educational institutions, consider doubling-down on saving for retirement. Calculate what it will take for you to live the lifestyle you want in retirement and compare it to your current savings. Contribute as much as you can to your workplace savings plan and consider building up Roth IRA savings to help create a source of income that is potentially tax-free in retirement.

Recognize your long-term care challenges

Long-term care can be a challenge for anyone as they age, and there’s added complexity in situations where you may not be able to rely on family members to step in. Medical expenses continue to rise, so it’s important to have adequate savings and insurance coverage. Make it a priority to explore your options through Medicare and your current or former employer and consider if long-term care insurance would benefit you. Also research caregiving options and long-term care facilities in your area so you are familiar with the choices if you need them down the road.

Prepare for medical care

A significant medical event can happen at any time, so make sure to have an advanced directive, also known as a living will, in place. This document lets your spouse, extended family and friends know your preferences for treatment and gives you the opportunity to designate a healthcare power of attorney, who will be empowered
to make decisions on your behalf if necessary. Have your financial decision-makers in place It’s also important to designate a spouse, friend, extended family member or professional to look out for your financial interests if you become incapacitated. Draw up documents to name a durable power of attorney to oversee your financial matters if you are unable to, including legal and tax matters. You do not have to share your full financial situation and account numbers; a common approach is to share enough information so that the contact can step in, if and where you need help making financial decisions.

Plan your legacy

With no direct heirs in line to inherit your estate, you will want to consider what you’d like your legacy to be. You may choose to leave your estate to any combination of family members, friends, charities, education institutions, or other causes that are important to you. Creating or updating your will is one of the best ways to articulate your wishes.

Also consider using trusts, which sometimes allow more flexibility than a will, to help you meet specific legacy goals. Consult with a financial advisor, attorney and tax legal professional to develop a comprehensive legacy strategy that suits your ultimate goals.

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.

Many people build their retirement and estate plans around their children and grandchildren. Everything from where they live, to how they spend their time and money, to the legacy they want to leave behind is considered through the prism of their role as parents and grandparents. For those without kids and grandkids, a different formula…
Nurturing Your Financial Freedom

As we all get older, our needs in life change. That can happen in both large and small ways. But one thing we all need to consider is the journey of long-term financial planning. While that can seem like a huge task, by breaking it down into manageable steps, we can all work towards financial security in retirement. Here are some thought starters to consider.

1. Craft a Thoughtful Spending Plan

Continually reassess your budget. Prioritize necessities over luxuries, earmarking funds for essentials like healthcare, housing and day-to-day living expenses. A well-structured spending plan provides a roadmap for financial stability.

2. Invest Strategically

Diversify your investments to minimize risk and maintain a steady income throughout retirement. Explore options like stocks, bonds and retirement accounts, including IRAs and 401(k)s. A diversified portfolio is a financial safety net.

3. Preserve Your Health and Wealth

Healthcare expenses can significantly impact your finances during retirement. Ensure you have comprehensive health insurance coverage and consider long-term care insurance to safeguard your savings.

4. Secure Your Legacy

Protect your assets and legacy by establishing or updating your will and estate documents. This can help reduce estate taxes and guarantee your assets are distributed according to your wishes.

5. Optimize Social Security

Exploring strategies to maximize your Social Security benefits is essential. Delaying your benefits can lead to larger monthly payments, enhancing your financial security in the long term.

6. Trim High-Interest Debts

Prioritize paying off high-interest debts before retiring Reducing your debt load will free up more of your retirement income for daily expenses and leisure activities.

7. Build an Emergency Fund

Maintain an emergency fund to cover unexpected expenses. A financial cushion will prevent you from tapping into your retirement savings prematurely.

At its core, the aloha spirit is all about helping each other. As we care for each other, we make our community stronger. Just remember, we never need be alone in making decisions to last a lifetime.

GATHER FEDERAL CREDIT UNION
(Lihue, Kapa’a, Koloa, ‘Ele‘ele and Waimea, Kaua’i)
808-245-6791 | info@gatherfcu.org | gatherfcu.org

As we all get older, our needs in life change. That can happen in both large and small ways. But one thing we all need to consider is the journey of long-term financial planning. While that can seem like a huge task, by breaking it down into manageable steps, we can all work towards financial…
Grief & Bereavement — Part VIII

In Sherry Turkle’s book, Reclaiming Conversation: The Power of Talk In A Digital Age, she writes about the process of the virtuous circle of communication by discussing the poet, Henry David Thoreau’s moving to Waldon Pond to live more deliberately. Thoreau furnished his cabin with three chairs. One chair to represent solitude, where he could self-reflect on matters most important for him. Two chairs to engage in conversation where he could express his thoughts to another. During these conversations, he could process information and gain new insights that better prepared him for self-reflection. All three chairs were set for a conversation with the larger community to allow for a broader awareness heading back to self-reflection. Thus, the virtuous circle that allows us to define and redefine our thoughts.

Estate planners can provide guides for each client to sit in self-reflection and consider for themselves what is most important with respect to healthcare and quality-of-life choices, as well as how to plan their financial estate. Once the plan is established, the attorney can facilitate a family meeting where the client expresses feelings and introduces the plan to family members, who can express their thoughts. The client then can self-reflect in solitude with this additional information preparing them for a better, more meaningful family meeting. Eventually, the attorney will engage the client and family with professional advisors, including the accountant and financial advisor, so that everyone understands the client’s intentions. It is vital to include and involve the client’s trusted advisors in the conversation with family. My observation is that, while families disagree, they usually can come to mutual understanding and decision. If trusted advisors come to different conclusions without consulting with one another, clients do not know how to proceed, causing the client to doubt the entire plan. It is essential that the client’s professional trusted advisors communicate with one another and come to a settled unanimous path for the client to pursue.

This virtuous circle of communication continues until the client can no longer communicate their intentions. By that time, the client’s family members and trusted advisors know, understand and will honor the client’s wishes. This process is not only important for the client in gaining perspective over personal choices, it is equally as important for participating family members and trusted advisors because they get to know the client on a much deeper level. By using this approach, family members and professionals will be on the same page in honoring the client’s intentions.

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

In Sherry Turkle’s book, Reclaiming Conversation: The Power of Talk In A Digital Age, she writes about the process of the virtuous circle of communication by discussing the poet, Henry David Thoreau’s moving to Waldon Pond to live more deliberately. Thoreau furnished his cabin with three chairs. One chair to represent solitude, where he could…
Estate Planning 101

The first step in the estate planning process is learning. What do you need to learn? I suggest this as your starting point: You need to discover how to stay in control of your stuff while you are able to be in control, as well as how to be sure that that your wishes will be carried out when incapacity or the grim reaper catch up with you. Sorry to rub it in, but at least one of those things is going to happen to you. Odds are that both of them will.

Certainly, you have views about the kind of healthcare you want to receive throughout your lifetime, and you have views about who should enjoy your stuff when you are done with it. The only way to make effective choices about those things is to know what your choices are. Learning about your choices is a lifelong process because your choices will change as your circumstances change. Your health is going to change. Your assets are going to change. Your comfort with your list of designated decision-makers is going to change. The laws that affect your estate plan are going to change. As those things change, you will need to stay on top of the choices you can make in order to be confident that your wishes will be followed at every phase of your life — and perhaps beyond your lifetime.

Let’s say you are thinking about going on an adventure. Where do you want to go? How do you want to get there? Are there any better destinations you might want to consider? Is there a better means of getting you there than the one you originally chose? The only way to know the answers to these questions is to do some research, talk with people who have taken similar trips and, better yet, talk with folks who have helped lots of people take all kinds of journeys. It’s kind of like asking for directions. While I have never regretted asking for them, I have regretted waiting too long to do so. Don’t make that mistake.

Your life is a journey. If you do not make your own choices about the path of your journey, someone else will make those choices for you, and you might not like where you end up. So, learning about estate planning is your key to ending your journey well. The sooner you learn about your estate planning options, the sooner you can implement ways to mitigate or head off problems that are headed your way, even though you don’t know exactly what they are or when they will arrive. Read what you can, talk with your trusted advisors, and put what you learn to work in building the estate plan that will take you to your chosen destination.

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

The first step in the estate planning process is learning. What do you need to learn? I suggest this as your starting point: You need to discover how to stay in control of your stuff while you are able to be in control, as well as how to be sure that that your wishes will…
Tips for Entering Retirement Solo

Approximately 23 million Americans ages 65 and older are single, divorced or widowed, according to the most recent data available from the U.S. Census Bureau (1). That means there are many people in this country who are planning their retirement on their own, without the help of a spouse or partner.

If you are a part of this group, there are unique considerations you may need to keep in mind as you navigate your path to retirement on your own.

■ Align your lifestyle with your savings: Whether it’s traveling, volunteering, visiting family, or working part-time, think about how you want to fill your days — then consider how you’ll fund your new lifestyle.
■ Plan for healthcare expenses: Decide how expenses are handled, including possibly needing long-term care. Depending on your situation, insurance coverage (including Medicare, Medicaid and long-term care insurance), health savings accounts and investment savings may be part of the solution.
■ Update your estate plan: Review and make any necessary adjustments to your estate plan and beneficiaries on key accounts to ensure they align with your wishes. Pick a trusted family member or friend to serve as your financial and healthcare proxy. An attorney can help you assign someone to make decisions for you in the event you can no longer act on your own.
■ Consider your mortgage: Think about whether you’d like to pay it off before or during retirement. Consider your tax strategy, cash flow needs today and down the road, and whether you intend to downsize or move.
■ For those who are divorced: If you were previously married, additional considerations apply as you think about your retirement plans:
• If you receive alimony payments, be aware that the amount you receive may be modified — or even end — once your ex-spouse reaches retirement age. On the other hand, if you are the one who makes alimony payments, make sure you understand how much you’re obligated to continue paying in retirement.
• You may also consider claiming Social Security benefits based on the earnings of your ex-spouse; as early as age 62. However, the longer you delay claiming benefits (up to your full retirement age), the larger your monthly benefit will be. Your claim has no impact on the amount of your ex-spouse’s benefits.
■ For widows and widowers: The following tips can help you as you reframe your retirement years:
• If you were not closely involved in managing household finances, enlist a trusted family member or financial professional to review your current situation. Track down passwords to all your accounts and make an updated plan to address your current needs and retirement goals.
• If you collected an insurance settlement following the passing of your spouse, focus on investing that money effectively to help generate income during your retirement.

You can also claim Social Security survivor benefits if you are at least age 60. How you decide to spend your retirement days is personal — so your retirement plan should be too. Turn to a tax professional and financial advisor for guidance on what steps to take next.

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.

(1) “America’s Families and Living Arrangements: 2022 – Table A1,” United States Census Bureau. Last Revised – November 21, 2022. census.gov/data/tables/2022/demo/families/cps-2022.html.

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.

Approximately 23 million Americans ages 65 and older are single, divorced or widowed, according to the most recent data available from the U.S. Census Bureau. That means there are many people in this country who are planning their retirement on their own, without the help of a spouse or partner.
Grief & Bereavement — Part VII

Estate planning attorneys help their clients make sound, intentional decisions relating to their estate plans when they manage to help clients minimize guilt, conflict and anxiety. At the same time, survivors should be allowed experience the natural process of grief.

An estate planning attorney can achieve this balance by:

• Creating a safe, comfortable physical environment
• Utilizing good counseling skills
• Encouraging and facilitating open, transparent and respectful communication among family members and others involved in the estate.

Physical Environment

Facing one’s mortality, visiting with an attorney, worrying about costs and dealing with new terminology can cause clients to experience stress. No one can make sound decisions while under stress. In Janice Mucalov’s article entitled “Lawyers: Gatekeepers for Psychological Issues,” she outlines the precarious nature of this issue.

“Emotionally distressed clients pose greater risks than non-distressed clients,” she writes. “Because emotions cloud their thinking, you may fail to appreciate the nature of the client’s problems, or they may fail to understand your advice.”

Truly, the estate planner’s first effort should be in creating a safe, calm environment for the client. This will reduce stress.

Counseling

Attorneys will want to learn and apply good counseling skills in order to help clients make the best decisions regarding their estate plans. Carl Rogers introduces a particularly useful method of counseling for estate planning in his work On Becoming a Person. He proposes developing and applying three qualities of counseling:

• Meet and interact with each client in counseling with genuineness and congruence.
• Enter each relationship and treat each clientwith unconditional positive regard.
• Enter and engage each counseling session with empathic understanding.

Communication

Estate planning attorneys must emphasize that because life is fluid, a periodic review of the client’s estate plan is essential in order to ensure that the plan remains current. How often the client meets with the attorney depends on the client’s particular situation and need. The process, however, remains constant. Estate planners can provide guides for each client to sit in self-reflection and consider for themselves what is most important with respect to healthcare and quality of life choices, as well as how to plan their financial estate.

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

Estate planning attorneys help their clients make sound, intentional decisions relating to their estate plans when they manage to help clients minimize guilt, conflict and anxiety. At the same time, survivors should be allowed experience the natural process of grief.
The Great Certainties: Death & Taxes

They say that the only certainties in life are death and taxes. When your life comes to an end, your loved ones can be left facing both certainties at the same time. The good news is that to some extent, we can postpone both, and we can avoid (notice I did not say evade) taxes almost entirely. Postponing death is a matter of staying as healthy as we can through diet, exercise, meditation, having an emotional support system, and maintaining a positive state of mind. Of course, if we don’t look both ways before we cross the street, then all those vegan rice cakes, pickleball games and Ommm sessions go out the window. On the other hand, postponing or avoiding taxes takes a lot less work and can be almost as fun as staying healthy.

The taxes that could take a swipe at your loved ones after you die are mostly these: income tax, capital gains tax, estate tax, and generation-skipping transfer tax. Although the gift tax only applies to transfers made during your lifetime, your lifetime transfers may impact your ultimate estate tax liability. Other taxes may apply as well, but those are the big ones collected by the IRS. Each state also imposes and collects a variety of taxes. Hawai‘i does not officially have a gift tax, but it does collect the other taxes listed above. Hawai‘i’s estate tax takes into account lifetime gifts, so while there is no state gift tax during your lifetime, your estate may have to pay additional Hawai‘i estate taxes that more or less make up for the fact that you did not have to pay Hawai‘i gift tax during your lifetime.

But don’t despair. There are relatively painless ways to minimize or avoid all of these taxes, especially if you would prefer to support your favorite charity instead. When it comes down to it, estate tax can be completely avoided through a combination of taking advantage of the estate tax “coupon” (the amount that you can give away estate tax free) and the unlimited estate tax charitable deduction. If the value of your estate exceeds the coupon amount, you can give the coupon amount to your loved ones (so far, no tax) and any excess to your favorite charity, just like that, you have passed on significant wealth without giving any of it to the tax man.

Disinheriting both the IRS and the State of Hawai‘i means that some assets that could have gone to family will instead go to good causes that will benefit your community, possibly for years after you are gone. Not only that, you will have proven that taxes may not be a “certainty” after all. Your trusted advisors can show you the way.

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

They say that the only certainties in life are death and taxes. When your life comes to an end, your loved ones can be left facing both certainties at the same time. The good news is that to some extent, we can postpone both, and we can avoid (notice I did not say evade) taxes…
Pay Off Debt or Invest: A Balancing Act

If you find yourself with extra cash — either a lump sum or excess dollars from your monthly paycheck — you may be wondering what to do with it. If you have debt — such as a mortgage or student loans — the prudent option may be to pay off your balances. Yet it might make more sense to put the money to work in the form of investments that have the potential to generate greater returns than the interest rate on your debt.

Deciding what to do requires analysis.

When Paying Down Debt Makes Sense

Depending on your financial circumstances, there may be good reasons to try to get at least some debt off your books. Among the most notable:

• You hold loans that come with high-interest rates. This is especially the case if you’ve accumulated credit card debt, where rates tend to be particularly burdensome.
• You want to improve your credit score. Paying off debts can help boost your credit rating, which may put you in a better position to pursue auto or home loans.
• You feel more comfortable lightening your debt load. It isn’t just a matter of dollars and cents. If the level of debt you hold makes you uneasy, it may be worth lessening the load when you can.

A general rule of thumb is to place a priority on paying off any debts where interest rates reach levels of 7% or greater. These costly loans can be a big drain on your resources and may exceed the returns you’d be able to achieve in a typical mix of investments.

When Investing Makes Sense

In some situations, it may be best to put available dollars to work in investments to help you achieve future goals. Growing wealth can help achieve a more c comfortable future, particularly if:

• Your current debt load is manageable, not placing an undue burden on your overall monthly cash flow situation.
• You are coming up short of a key financial goal that’s important to you, and an infusion of extra cash could help you achieve that goal. For example, you should make a priority of adjusting your budget (and using your extra cash to help make it happen) if you have not been in a financial position to take full advantage of employer-matching contributions to your workplace retirement plan.
• There is a shortfall in your emergency fund. You should have at least three-to-six months’ worth of income set aside in liquid savings to pay the costs of an unforeseen expense.

Finding a Middle Ground

Depending on the circumstances, a case can be made for a “hybrid” approach: using some of the cash to pay down debt while investing the other portion of your funds. Once again, this is a matter of choosing your priorities. You may not be able to accomplish everything you’d like, but you can determine what combination of debt repayment and investing makes the most sense for you, based on the priorities laid out above.

Work with a trusted and experienced financial advisor to ensure any decision you make is consistent with your overall financial plan and investment strategy.

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 and its affiliates do not offer tax or legal advice. Consumers should consult with their tax advisor or attorney regarding their specific situation. Investment advisory products and services are made available through Ameriprise Financial Services, LLC, a registered investment adviser. 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. Ameriprise Financial Services, LLC. Member FINRA and SIPC. ©2023 Ameriprise Financial, Inc. All rights reserved.

If you find yourself with extra cash — either a lump sum or excess dollars from your monthly paycheck — you may be wondering what to do with it. If you have debt — such as a mortgage or student loans — the prudent option may be to pay off your balances. Yet it might…
Grief & Bereavement — Part VI

While the attorney is an expert in the estate planning process, the client is the expert about their own life, grief and choices. The attorney, as counselor, helps clients find solutions and make choices as they compassionately facilitate the estate planning process.

Holistic planning involves more than probate avoidance and tax minimization. It is person-centered, value-driven and process-oriented. The law historically prioritizes a different approach, viewing planning as document-centered, worth-driven and procedurally oriented. This approach is visible in the emphasis Congress, legislatures and estate planning attorneys place on the crafting of laws and drafting of documents.

The binary nature of estate planning documents simply does not help clients. We must allow space for each client to express emotions and intentions if we are to craft a successful and complete plan.

Statistical studies demonstrate the dismal success rate of estate planning and end-of-life planning. In Roy O. Williams and Amy A. Castoro’s Bridging Generations, they analyzed the success rate of more than 3,250 estate plans over a 52-year period and found a success rate of about 30%. The authors define success as “future generations retaining the family’s financial assets while remaining a unified family.”

When dissecting the failure rate further, the study finds that 3% of the failures occurred due to bad drafting or tax planning. The remaining 97% of failures occurred because intentions were not honored, monetary legacies were misspent, lost or stolen and family relationships fractured.

Professor Thomas Shaffer, in his article titled “Estate Planning Games” — a play on the book written by E. Berne, Games People Play — encourages attorneys to meet clients with curiosity.

Attorneys are advised to consider the client’s needs rather than starting with the needs of the attorney. In other words, Shaffer affirms that we must start with the question: Why? Why are you here? Why is what you said important to you? Then, the process can organically grow from there.

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

While the attorney is an expert in the estate planning process, the client is the expert about their own life, grief and choices. The attorney, as counselor, helps clients find solutions and make choices as they compassionately facilitate the estate planning process. Holistic planning involves more than probate avoidance and tax minimization. It is person-centered,…
Financial Freedom in Your Golden Years

Aging is a process that’s changing. We’re now living longer and more active lives. And as we approach our later years, many of us have strong feelings about where and how we want to spend this period of our lives.

While residential care homes can be wonderful places, most people want to remain in their homes and “age in place” for as long as possible. This can, however, present some unique challenges. As we age, our physical and mental health can decline, sometimes quite quickly. That’s why it’s vital to create the right support system for ourselves or loved ones.

From housekeeping to managing medication and meal preparation, there are many common areas where people need assistance. Fortunately, there are companies that specialize in home care services. They can help resolve these issues. These services do come with a price tag, though, so it’s important to consider your family budget.

Financial management is another important consideration that’s often overlooked. As we age, our financial capacity decreases — and according to the Journal of the American Geriatrics Society (April 2017), women may be impacted more than men.

That’s why it’s important to consider financial management early. This includes:
• Paying bills
• Depositing checks and balancing bank statements
• Providing budgeting and longterm planning
• Managing health insurance and medical claims
• Evaluating government and pension benefits
• Facilitating communication with legal, financial
and tax professionals

Finding a financial manager can be challenging, but there are options available. You can ask a trusted family member or friend to help, or consult with your tax preparer to see if they offer this service. Corporate trust companies and private fiduciaries also offer financial management services.

Working with a financial manager is a partnership that requires careful consideration and structuring. But with the right approach, this relationship can help ensure controlled and wise management of your finances as you age — and help you focus on enjoying life to the fullest.

HAWAII FIDUCIARY SERVICES LLC
3615 Harding Ave., Ste. 309, Honolulu, HI 96816
808-777-4200 | kholt@hifiduciaryservices.com
HawaiiFiduciaryServices.com

Aging is a process that’s changing. We’re now living longer and more active lives. And as we approach our later years, many of us have strong feelings about where and how we want to spend this period of our lives.
Don’t Do It Yourself: DIY Estate Plans

You can devise your estate plan without lawyers or accountants. All you need is a credit card, a computer, a printer and access to the internet. Armed with those four things, you can create one or more documents that may — or may not — accomplish what you expect.

But you will probably never know. The ultimate success or failure of an estate plan is rarely revealed during the lifetime of the one who created the plan.

You have seen or heard ads touting websites that claim to save you oodles of money by sidestepping your lawyer and designing your estate plan for you. But ask yourself this: why would you trust a website to come up with your estate plan? Your last name may not be Musk or Bezos, and you may not have as much stuff as Elon or Jeff, but everything you own is everything you own. You probably care a great deal about where it goes after you are gone. It most likely also makes a difference to you who will make decisions for you if there is ever a time when you cannot make them for yourself.

You may respond, “You’re a lawyer who makes a living putting together estate plans for clients. Of course, you do not like those legal websites. They cut into your bottom line.” Well, not really. It would be more profitable for the legal profession if you go ahead and do your estate plan online. There is far more money to be made in dealing with screwy estate plans after they go wrong compared to administering them when they’ve been set up correctly.

However, most estate planning lawyers would rather earn a living by helping people create estate plans that work. This is more gratifying than assisting families in crisis trying to make the best of estate plans that missed the mark.

In the real world, computer-driven estate plans rarely work as intended. An effective estate plan involves more than a set of documents — even very well-drawn documents that would stand up in any court in the land, as they say. But why would you want your estate plan to have to stand up in court? Wouldn’t it be better to have an estate plan that will help your family stay out of court?

Bottom line: There is a lot of great information on the internet. There is also a lot of misinformation. Do you have the discernment necessary to sort through it and put your estate plan in order? If not, there is something to be said for working with live professionals instead of an impersonal website that cares more about your credit card authorization than what happens to you, your family and your stuff when you become incapacitated or die.

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

You can devise your estate plan without lawyers or accountants. All you need is a credit card, a computer, a printer and access to the internet. Armed with those four things, you can create one or more documents that may — or may not — accomplish what you expect.