Category: Wisdoms

Estate of Mind

Remember the classic Abbott and Costello comedy routine, “Who’s on First?” The longer they banter, the more their frustration grows due to their seeming lack of understanding of the game they are discussing — and hilarity ensues.

Similarly, the language of estate planning can give rise to problems for the uninitiated, but the problems that arise 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.” Does it mean land, as in “real estate,” or what passes by way of your will, as in “probate estate,” or does it mean what is in your revocable living trust, as in “trust estate” or does it mean what is subjected to “estate” tax after you are gone? It can mean any of those things, depending on the context.

An “estate” can be land or an interest in land. An example of an interest in land is a life estate, which gives the owner (the “life tenant” ) the right to use the land for his or her lifetime. The life estate terminates upon the life tenant’s death and the land then goes to the person who stands to inherit property (the “remainderman”).

The term “life tenant” does not refer to somebody who pays rent, as we normally think of a “tenant,” but rather somebody who can use certain property for life without having to pay rent.

Your probate estate is whatever you own at your death that will pass by way of your Last Will and Testament. It can include anything you own, such as land, bank accounts and jewelry.

If you put your land, bank accounts and jewelry into your revocable living trust, those assets become what is called your “trust estate,” and they will no longer be part of your probate estate when you die. Your trust estate bypasses probate.

But wait! “Doesn’t the estate tax hit not only a person’s probate estate, but also things that have nothing to do with the person’s probate estate — like life insurance policies, retirement accounts, jointly owned assets and trust assets?” Yes, because your estate for estate tax purposes includes just about everything you own or control at the moment of your death.

Knowing the language of estate planning can be helpful in formulating your own estate plan, as well as understanding someone else’s plan that names you as a beneficiary. Having a well-informed estate planning vocabulary takes you a long way toward knowing “who’s on first” in the complicated subject of estate planning.

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

Remember the classic Abbott and Costello comedy routine, “Who’s on First?” The longer they banter, the more their frustration grows due to their seeming lack of understanding of the game they are discussing — and hilarity ensues. Similarly, the language of estate planning can give rise to problems for the uninitiated, but the problems that…
Tips for Dividing an Estate

Dividing tangible personal property is a task that often causes problems for a personal representative and between heirs.

A will typically directs that property with monetary value is to be sold and the proceeds deposited into the estate account.

But what happens when the property has no real value but the sentimental value is priceless?

Here are some possible solutions that may help mitigate potential problems:

♦ Plan ahead and make a list within your will that identifies the item and recipient. This is unambiguous and clearly expresses your wishes.

♦ Consider gifting items while you’re alive. The added benefit is watching the recipient enjoy your gift.

♦ Consider assigning a number to all items and draw them from a jar (if you are acting as a personal representative).

♦ Use color-coded stickers to designate what items will go to whom. The item with the appropriate sticker will go to the “owner” of that color. If an item has multiple stickers from many hopeful recipients, begin a discussion about who gets the item. The story explaining why someone is attached to a particular item may help with the grieving process. If it cannot be resolved, put all the names in a hat and conduct a random drawing.

♦ Hiring an unbiased, outside, professional third-party to help decide how to divide the property, manage communication and resolve conflicts may be a final strategy. For example, a mediator helps parties negotiate a settlement that will satisfy all the parties. (Keep in mind that a mediator does not decide a dispute.)

It is always best to plan ahead. But if that is not possible, develop a strategy for dividing items that everyone agrees on. This can be a positive experience with planning and strategy.

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

Dividing tangible personal property is a task that often causes problems for a personal representative and between heirs. A will typically directs that property with monetary value is to be sold and the proceeds deposited into the estate account. But what happens when the property has no real value but the sentimental value is priceless?
Navigating Your First Year in Retirement

Like most Americans, you’ve probably spent years working to achieve the retirement of your dreams. Then there comes a point when this career milestone changes from a distant goal to an imminent reality.

You can make your first year away from work more rewarding and less stressful when you take the time to anticipate potential challenges and prepare for how you will handle this important life change.

Your state of mind

In your first weeks as a new retiree, it’s normal to feel both excitement and trepidation. You’re eager for more time to connect with friends and family, and to do the activities you love. Stepping away from your career can also reduce your stress level and free you from the burden of having competing priorities.

However, saying goodbye to your workplace, business associates, day-to-day responsibilities and regular paycheck may trigger anxiety and sadness. This is especially true for those who have really enjoyed their professional status and fulfilling career.

If your spouse or significant other is already at home, either as a homemaker or the first retiree, recognize that your new lifestyle may cause similar emotions for this person. Imagine your reaction if he or she were retiring to your “office.” The change would mean a departure from your schedule and habits, even if it does mean more time together.

For those experiencing mixed feelings, it’s helpful to acknowledge them, both to yourself and a partner or trusted friend. Remind yourself why you chose to retire and remember all that you accomplished to reach this point.

Your purpose

With your calendar clear of work obligations, it’s important to identify a few ways to fill your time. To start, keep the promises you’ve made to yourself, your spouse or others about what your retirement will include.

For example, if you’ve promised distant relatives that you’ll reconnect some time in the future, then organize a reunion.

Or set a date to fulfill your dream of visiting France’s wine country or find an instructor who can teach you to play the piano. Alternatively, you may decide to pursue an encore career, part-time job or an opportunity to open your own business.

With all your new possibilities, it’s important to avoid overcommitting yourself. Give yourself some breathing room in each day and ease into volunteer organizations or activities. Now that you have the freedom to do so, be sure that you’re choosing to spend your time in ways that are the most gratifying to you.

Your finances

Adjusting your mindset from building your nest egg to spending it can be challenging. To make your initiation to retiree life easier, create a plan for how you will pay yourself in retirement. Start by tallying your income sources before determining which ones you’ll tap into first.

Next, estimate your cash flow for year one. Planning this in advance can help ease worries and reduce your risk of overspending. As a benchmark, have enough cash to cover three years of potential unexpected expenses.

Once you’re in retirement, enjoy your newfound freedom, but make sure to monitor your cash reserves regularly to gauge your spending and make adjustments as you find necessary.

If you’re uneasy or need reassurance that your income and cash flow plans are sufficient, meet with a financial advisor. Together you can look at the impact of taxes, evaluate your portfolio diversification and prepare for the legacy you’d like to leave your community and family.

Becoming a retiree means both enjoying and enduring a lot of change. Although you can’t prepare for every challenge and opportunity you might face in your first year, planning for what you can control allows you to move into this new life stage with confidence.

MICHAEL W. K. YEE, CFP,® CFS,® CLTC, CRPC®
1585 Kapiolani Blvd., Ste. 1100, Honolulu, HI 96814
808-952-1222, ext. 1240 | michael.w.yee@ampf.com | www.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 37 years. 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. ©2021 Ameriprise Financial, Inc. All rights reserved.

Like most Americans, you’ve probably spent years working to achieve the retirement of your dreams. Then there comes a point when this career milestone changes from a distant goal to an imminent reality. You can make your first year away from work more rewarding and less stressful when you take the time to anticipate potential…
The Two Asset Distribution Standards

As an estate planning attorney, I observe how families decide to distribute their assets among their children. I have seen two main standards used to determine the gift.

First is the standard of meeting needs and wants. As parents, we know the needs and wants of our children, and do our best to meet both of these. One child with an interest in music might need and want a guitar; another child with an interest in sports may need and want volleyball. While the dollar value of the musical instrument may not match the dollar value of the volleyball, their needs and wants would be fulfilled equally.

This standard works well while the parents are alive to observe these wants and needs. It becomes difficult and nearly impossible to meet needs and wants once the parents die and are no longer able to make those observations. They could make an educated guess in advance for their child’s future, but naturally, what a child needs or wants today will no doubt be entirely different tomorrow.

Because of this uncertainty, the standard can shift from needs and wants to equal after they die. A last will and testament or living trust can provide this equality. Many children receive these as a statement of how much their parents love them — most parents want their children to know that they are loved equally.

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

As an estate planning attorney, I observe how families decide to distribute their assets among their children. I have seen two main standards used to determine the gift. First is the standard of meeting needs and wants. As parents, we know the needs and wants of our children, and do our best to meet both…
‘No Mom, I’m Not in Jail’

I recently received a telephone call from my mother. Given that I was in a meeting, I didn’t answer it, but instead let it go to voicemail. Almost immediately, the phone started buzzing again from her same number. Usually, my mom would just leave a message, so this second call was very unusual.

I excused myself from the meeting and answered the call. Mom immediately asked, “Scott, are you in jail?”

It took me a second to comprehend what she was asking me and another second to understand what was going on. My parents were being set up for a scam.

While my mother was out playing mahjong, my dad’s caregiver had answered my parents’ home phone and was informed that their child had been arrested. Even though I have a brother and two sisters, it was assumed the child who was incarcerated was me — the one who has worked at the Prosecutor’s Office for 25 years!

My mother came home from her game to find my father in a panic and a caregiver who was now viewing my folks in a different light. But I was very relieved that my mother had the forethought to call me first before contacting the “police” to arrange to post my bail.

Once I explained that this was a common scam, very similar to the Grandma Scam, in which a person is told that a loved one is in trouble and immediate financial help is necessary to avoid harm befalling them, my mother and father realized I did not suddenly turn to a life of crime.

I called the phone number with the New York area code, but no one answered.

A lot of the scams that are brought to the attention of the Elder Abuse Unit involve victims giving money when they are in a high emotional state. These strong feelings can be joy (as in “winning” the lottery and needing to pay taxes and fees first before collecting your “prize”), fear (a message saying a loved one is in need and money will fix the problem) or sorrow (help these poor people who are experiencing the trauma of a natural disaster).

Whatever the angle that is pitched, please don’t make financial decisions when your emotions are running high! You could be setting yourself up as the target of a costly scam.

If you suspect elder abuse, call these numbers:
Police: 911 | Adult Protective Services: 808-832-5115
Elder Abuse Unit: 808-768-7536
For questions, email ElderAbuse@honolulu.gov

I recently received a telephone call from my mother. Given that I was in a meeting, I didn’t answer it, but instead let it go to voicemail. Almost immediately, the phone started buzzing again from her same number. Usually, my mom would just leave a message, so this second call was very unusual. I excused…
Estate Taxes: What’s Around the Corner?

After spending a lifetime of earning, saving and investing — and paying income and capital gains taxes all the way along — you may wonder why our government feels entitled to tax the value of what’s left when you die. However, the IRS and the State of Hawai‘i both want a piece of your estate.

As of 2021, each US citizen residing in Hawai‘i is allowed to pass on $5.49 million free of state estate tax and $11.7 million free of federal estate tax. I call these “coupon” amounts, because it is as if the government gives each of us a coupon to shelter our assets from estate tax. At the current coupon amounts, most of us do not have to worry about the government reaching into our family cookie jar when we die. But, major changes to the coupon amounts may be around the corner.

Congress is talking about cutting the federal coupon approximately in half and Hawai‘i has been talking about reducing its coupon to $1 million. So there could be tax payable at your death if you own a house and have modest amounts of cash, life insurance, and retirement savings.

Don’t wait until the law changes before you call your estate planning advisors to talk about how to address these possible changes. There may be things you can do to minimize the tax bite and maximize what you leave your family.

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

After spending a lifetime of earning, saving and investing — and paying income and capital gains taxes all the way along — you may wonder why our government feels entitled to tax the value of what’s left when you die. However, the IRS and the State of Hawai‘i both want a piece of your estate.
Retirement Plans for Small Businesses

If you are among the nation’s more than 31 million small businesses owners, you likely spend much of your time juggling day-to-day business activities and put off planning for the future.

If retirement planning has fallen on your back burner, now is the time to bring it to the forefront. As a small business owner, you deal with a different world of retirement plans than somebody who is an employee, making it all the more important to closely explore your options when deciding what’s right for you.

Plan options to consider

Self-employed individuals or business owners should be sure to fund IRAs as much as possible. The annual limit for 2021 is $6,000 ($7,000 for those aged 50 and up). Funding IRAs is only a starting point. A few other options for the self-employed and business owners to consider:

Solo 401(k)s — This offshoot of the traditional 401(k) plan can be established if you(or you and your spouse) are the only employees of your business. It offers the ability to direct the largest potential contribution annually. As much as $58,000 can be set aside in 2021 ($62,500 for those age 50 and older). This comes from a combination of employer and employee contributions. There are initial costs and efforts needed to start and maintain the plan, as it requires a plan administrator. Earnings grow on a tax-deferred basis and contributions made by an incorporated business can be deducted from business expenses. For non-incorporated businesses, the owner can deduct contributions from their personal income. For those with employees, a full 401(k) plan can be established, though different rules will apply.

SEP IRAs — A SEP IRA is very similar in structure to a Solo 401(k), with two main exceptions. Costs are minimal, as it does not require the support of a plan administrator and it can cover employees. In this plan, all contributions are made by the employer equal to no more than 25 percent of compensation (a maximum of $58,000 in 2021). The employer can determine what percentage of compensation to set aside each year, but it must be consistent for all employees, including the owner.

SIMPLE Plans — These plans allow businesses with fewer than 100 employees to establish either a SIMPLE IRA or SIMPLE 401(k) for each employee. Employees can make salary deferral contributions of up to $13,500 ($16,500 for those 50 and older) in 2021. Employers are obligated to provide a matching contribution in SIMPLE 401(k)s of 3 percent of compensation for employees who elected to defer or 2 percent for employees who did not elect to make contributions.

Your business as a retirement asset

Of course, monetizing the value of your business may be another way you fund your retirement. If your business can continue to operate successfully without you, it should have value when you retire. Selling your business to a current employee may be an option or you may want to look for potential outside buyers.

As a business owner, you have unique challenges and opportunities when it comes to planning for a successful retirement. Talk to a financial advisor about how to put a strategy in place to assure your long-term financial security.

MICHAEL W. K. YEE, CFP,® CFS,® CLTC, CRPC®
1585 Kapiolani Blvd., Ste. 1100, Honolulu, HI 96814
808-952-1222, ext. 1240 | michael.w.yee@ampf.com
https://www.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. Specializing in fee-based financial planning and asset management strategies, he has been in practice for 37 years. Ameriprise Financial cannot guarantee future financial results. Investment products are not federally or FDIC-insured, 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. 1 U.S. Small Business Administration, “2020 Small Business Profile.” © 2022 Ameriprise Financial Inc. All rights reserved.

If you are among the nation’s more than 31 million small businesses owners1, you likely spend much of your time juggling day-to-day business activities and put off planning for the future. If retirement planning has fallen on your back burner, now is the time to bring it to the forefront.
How to Choose the Best Fiduciary

Two of the most frequently asked questions I hear are “How do I choose a trustee?” and “Am I choosing the right trustee?” Here are six criteria to help you choose the right fiduciary for you:

1) Do you TRUST him/her? Trust is crucial. You are trusting the fiduciary to care for you during periods of incapacity and to carry out your wishes when you pass.

2) Is he/she AVAILABLE? Ideally, the fiduciary will live near you or have immediate access to you when you need assistance.

3) Is he/she ABLE? Being a fiduciary can be stressful and require “running around” on your behalf. You will want to make sure your fiduciary is able to respect your values and beliefs so they are able to carry out your wishes.

4) Is he/she WILLING? Make sure he/she is willing to be your fiduciary.

5) Does he/she KNOW your beneficiaries? Having an existing relationship and understanding the needs of the beneficiaries is crucial to ensure the beneficiaries are taken care of.

6) Does he/she have any GHOST PLAYERS? Ghost players are people that may adversely influence the fiduciaries decision-making.

Your best choice will be a fiduciary who meets all these criteria. If no one suitable can act your fiduciary, hiring a professional third-party fiduciary to act on your behalf may be appropriate.

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

Two of the most frequently asked questions I hear are “How do I choose a trustee?” and “Am I choosing the right trustee?” Here are six criteria to help you choose the right fiduciary for you.
Family Business Succession Basics

Only about 25 percent of family businesses survive for 15 years or more, and only about 25 percent of the “survivors” will survive the transition to the next generation. There are many contributing factors.

Most parents want to treat their children equally, but not all children are capable of running a business. And not all children want to continue in the family business, irrespective of their capabilities.

It is critical to take a sober look at your business and your descendants, and consider: Can my business be successful for another generation? Your business may have provided a brilliant solution to a pressing need back when you founded it, but markets, technology and spending patterns have changed since then. Unless your business is nimble enough to make adjustments, it may not continue to be viable.

Moreover, what is more important to you: the continuation of your business or passing on your wealth? These goals may go hand in hand, but if none of your children will carry on your dream, selling your business and passing on the proceeds may be your best option.

Your trusted advisors can help you leave the kind of legacy that best honors you, your business and your family.

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

Only about 25 percent of family businesses survive for 15 years or more, and only about 25 percent of the “survivors” will survive the transition to the next generation. There are many contributing factors.
Navigating Today’s Housing Market

In many parts of the country, home prices have been soaring. According to the National Association of Realtors, the median existing-home price rose more than 17 percent in the one-year period ending in March 2021. This reflects just how competitive the market has become for homebuyers.

If you are among those looking to purchase a new home, you should have a solid strategy in place before entering the market. Assume that any house you are interested in has drawn the attention of other potential buyers. In this environment, it helps to be prepared. Here are five steps that can put you in a more competitive position in today’s home buying market:

1) Get your financial house in order

A top priority is to have a good handle on your current financial situation. If you are already a homeowner, this means having a clear idea of the value your home will bring in today’s market and how much equity you have available. Another question is how much money you have set aside to cover a down payment on a mortgage or other expenses related to moving into a new place. It makes sense to sit down with your financial advisor so you are aware of your current financial capabilities to participate in today’s market.

2) Look to professionals for help

Seek out the guidance of a real estate professional. Finding an agent through a referral from someone you trust is the best way to identify a qualified agent. Don’t be afraid to interview more than one to find the right fit. Also, talk to a lending institution to get preapproved for a mortgage (if you require financing). This is especially important for first-time homebuyers who want to reassure sellers about their creditworthiness.

3) Consider all of your options

It is easy to get your heart set on a particular community or neighborhood. If the supply is limited in your targeted areas, you may need to expand your horizons. Drafting a list of the priorities that define your ideal home and setting can be helpful when reviewing available properties and narrowing down your choices. It can also open doors to other areas that may meet your needs. Also, be careful not to get too set on what you may imagine to be your “perfect” home. Flexibility is important in today’s market.

4) Set a budget and prepare to work with it

A deciding factor in assessing the affordability of a home is to calculate the maximum monthly mortgage payment and property taxes that can fit into your budget. This will help you determine a realistic price range for your circumstances. It is becoming more common today to see home prices bid up beyond the asking price. To prepare for that possibility, you might want to lower your sights a bit to make sure homes you are pursuing stay within your budget, even if you have to offer more than the list price of the home.

5) Be patient and persistent

Buying a home in such a competitive marketplace is not likely to happen overnight. The process may take some time. In many markets, there are a fair number of potential buyers for quality homes. Sellers have the upper hand right now. It may become frustrating at times, but persistence is necessary to find the right property and be in a position to present the winning offer. If buying a new home is a priority for you, stay committed to the idea and have faith that the right opportunity will come along at the right time.

MICHAEL W. K. YEE, CFP,® CFS,® CLTC, CRPC®
1585 Kapiolani Blvd., Ste. 1100, Honolulu, HI 96814
808-952-1222, ext. 1240 | michael.w.yee@ampf.com
https://www.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 37 years. 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.
© 2021 Ameriprise Financial, Inc. All rights reserved.

In many parts of the country, home prices have been soaring. According to the National Association of Realtors, the median existing-home price rose more than 17 percent in the one-year period ending in March 2021. This reflects just how competitive the market has become for homebuyers. If you are among those looking to purchase a…
Define Your Legacy’s Intentions

According to the book, Preparing Heirs: Five Steps to a Successful Transition of Family Wealth and Values, “60 percent of transition failures were caused by a breakdown of communication and trust within the family unit.” With the aging demographic of baby boomers, the high cost of living in Hawai‘i and the increase in multigenerational homes, the potential influx in trust litigation is foreseeable. Where it is appropriate, I believe that encouraging clients to partake in difficult and potentially messy family discussions about their legacy and explaining “the why” behind their intentions is an integral part of preventing unwanted litigation. It may protect the overall health of the family. When willing clients feel the need for assistance in engaging in family discussions, a mediator may be effective in resolving any family disputes.

I also recommend that clients further solidify their intentions by writing them down as the foundation of their estate plan. Those creating a trust should prepare written guidance as to its underlying intentions. Having a well-defined estate plan will help give you and your family more peace of mind and promote harmony. But please make sure that when you are working with your estate planning attorney that your intentions are clearly defined. It can make all the difference.

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

According to the book, Preparing Heirs: Five Steps to a Successful Transition of Family Wealth and Values, “60 percent of transition failures were caused by a breakdown of communication and trust within the family unit.” With the aging demographic of baby boomers, the high cost of living in Hawai‘i and the increase in multigenerational homes,…
Ingredients for Cooking Up a Scam

In the dozen-plus years I have specialized in prosecuting elder financial fraud cases at the Prosecutor’s Office, it has become pretty easy for me to spot and disassemble how the majority of scams work. Like how a master chef can taste a dish and tell you the ingredients he tastes, I can smell a “business opportunity” or a get rich quick scheme and identify the individual parts of it that will reveal it to be an actual scam.

There are always certain ingredients present in a successful con. These elements, or red flags, of a scam can include anything from creating a sense of urgency in the victim, to playing on strong emotions, like fear or joy. The more of these elements present in the con, the more likely the con will be successful.

For example, the lottery scam (where you are told you won a prize but have to pay a fee to collect it or lose it) has a lot of these scam components. First, you are told you won a prize (getting something for nothing and the strong emotion of joy created). You have to keep the winning of the lottery a secret because of “reasons” (secrecy and isolating the victim from seeking advice). You have to pay taxes or a fee very soon before you collect your winnings (create a sense of urgency and the strong emotion of fear of losing your prize). You make a payment, only to be told there are more unexpected payments to be made (fear of losing out on your initial investment — you start chasing your money).

Once you recognize individual components of a deal, it becomes easier to realize when something may be actually a scam as opposed to a deal of a lifetime. The IRS is calling to say you are going to be arrested unless you pay them with a gift card immediately, or you receive a message from someone claiming to be a family member in peril in need of money, aka, the Grandma Scam (sense of urgency, creation of fear and isolating the victim from seeking good advice).

The one main ingredient that all cons seem to share is that the scam artist wants a person to make an emotional decision about money. If you find yourself about to take any action where you are about to give up anything of value and you are doing it in response to a strong emotion, stop, take a breath and see if you can smell any scam ingredients that may be present.

If you suspect elder abuse, call these numbers:
Police: 911 | Adult Protective Services: 808-832-5115
Elder Abuse Unit: 808-768-7536
For questions, email ElderAbuse@honolulu.gov

In the dozen-plus years I have specialized in prosecuting elder financial fraud cases at the Prosecutor’s Office, it has become pretty easy for me to spot and disassemble how the majority of scams work. Like how a master chef can taste a dish and tell you the ingredients he tastes, I can smell a “business…