3 Estate Planning Mistakes That Put Hawaiʻi Families at Risk

Estate planning is one of those tasks we all know we should take care of, but it’s easy to put off — especially when DIY services promise a quick, cheap solution. But in my work with families across Honolulu and throughout Hawaiʻi, the same truth shows up again and again: estate plans created online, or with attorneys who don’t focus on this area, often contain simple errors that turn into costly problems for loved ones later.

Most people don’t realize anything is wrong until someone takes a closer look. And by the time the mistakes come to light, it’s usually after the plan has been signed… or after the person who created it has passed away. At that point, fixing the issues can be expensive, stressful, and — in some cases — impossible.

Below are three of the most common and most damaging mistakes I see in DIY or low-cost plans, and how to avoid putting your ʻohana in a difficult situation.

1. Leaving Assets Directly to Your Loved Ones

One of the biggest — and most avoidable — mistakes is distributing assets outright to beneficiaries. While it may seem simple, it creates several serious risks:

• No creditor protection: Once assets are in a beneficiary’s hands, they’re exposed to lawsuits, divorce, debt, and financial mistakes.

• Risk of mismanagement: Even well-meaning loved ones may spend or invest unwisely.

• Problems for minor children: Minors can’t legally receive assets directly, requiring the court to appoint someone — not necessarily someone you’d choose — to manage their inheritance.

A better approach is to leave assets in trust for the benefit of your loved ones. With a properly designed trust, you choose who manages the assets, you maintain long-term protection, and you avoid the possibility of the court stepping in.

Why This Matters Even More in Hawaiʻi

Many families in Hawaiʻi own real estate or other valuable assets. Those assets are often vulnerable — particularly if left outright to young adults who may face financial pressures or unexpected life events. A trust can help ensure your family’s legacy stays protected, even generations later.

2. Ending Trust Protection Too Early

Another common mistake is directing the trust to hand assets over to children at a certain age — often 18, 21, or 25. While this seems reasonable at first glance, it removes the very protection the trust was designed to create.

Instead, consider establishing a Lifetime Asset Protection Trust, which allows the assets to remain protected for your beneficiaries throughout their lives while still giving them access for health, education, and general support.

Why This Makes a Difference

Even mature, responsible adults can face:

• Lawsuits

• Divorce

• Medical debt

• Business failure

• Unexpected financial crises

A Lifetime Asset Protection Trust shields the inheritance you leave behind so it can truly support your ʻohana long-term — not just until the next major life event.

This type of planning is not only for wealthy families. For many Hawaiʻi clients, even modest inheritances represent decades of hard work, sacrifice, and love. Protecting those assets can make a meaningful difference in your beneficiaries’ futures.

3. Forgetting to Update Beneficiary Designations

This is perhaps the simplest mistake — and the one that most easily derails an entire estate plan.

Insurance policies and retirement accounts don’t follow your will or trust. They pay out according to beneficiary forms, meaning:

• If your trust isn’t listed, the money may skip your plan entirely.

• Outdated beneficiaries (ex-spouses, deceased relatives, former partners) may still receive the funds.

• Your largest assets may go directly to beneficiaries with no protection or oversight.

One outdated beneficiary designation can undo years of thoughtful estate planning.

Here in Honolulu, I See This All the Time

Clients often assume their trust controls everything — especially after going through the effort of creating one. But unless those designations are intentionally updated, your largest assets may never make it into the trust at all.

Estate Planning That Actually Works

A solid estate plan isn’t just a set of documents — it’s a coordinated strategy that ensures every asset is properly aligned and protected. That’s why, when I create plans for families in Honolulu and across Hawaiʻi, I inventory every asset and guide clients through the process of updating titles and beneficiaries. For those who want extra support, I can even coordinate the updates directly with financial institutions.

A DIY plan or a plan drafted by a lawyer unfamiliar with estate planning may seem like a good idea at first. But if it contains even one of these mistakes, it may leave your loved ones with court delays, legal fees, and unnecessary conflict.

Your ʻohana deserves better.

FAQs

Is a DIY estate plan ever enough?

For very simple situations, DIY plans might help document your wishes — but they rarely account for asset alignment, long-term protection, or Hawaiʻi-specific considerations.

Do I need a trust if I live in Hawaiʻi?

Most families benefit from a trust because it avoids the Hawaiʻi probate process, protects real property, and offers more control and protection for beneficiaries.

What if I already created a plan online?

It’s smart to have it reviewed. Many issues only show up once someone with estate-planning experience looks it over.

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This article is brought to you by the Law Office of Keoni Souza, a boutique estate planning firm located in Honolulu, Hawaiʻi, proudly serving families on Oʻahu and across the Hawaiian Islands. At our firm, estate planning is about more than documents — it’s about creating lasting peace of mind for you and the people you love. Through our unique Life & Legacy Planning Process, we guide you to make informed, empowered decisions that protect your wealth, your wishes, and your family’s future. To get started, contact our Honolulu office today to schedule your Life & Legacy Planning Session.

Disclaimer: The information on this website is for informational purposes only and should not be considered legal advice. For guidance tailored to your specific situation, please consult an estate planning attorney licensed in the State of Hawaiʻi. Use of this website or communication through this site does not create an attorney-client relationship with the Law Office of Keoni Souza, LLC.