Why Hawai‘i Business Owners Can’t Afford a One-Size-Fits-All Estate Plan
- Keoni
- May 8
- 4 min read
Updated: 7 days ago
If you’re a business owner in Honolulu or anywhere in Hawai‘i, you’ve probably thought about protecting your family and assets. Maybe you even created a will or trust using a quick online form or bundled it with your financial plan.
It might’ve felt like you checked a big box off your list — but if that plan didn’t include your business, it’s not complete.
Estate Planning for Business Owners Requires More Than Convenience
As a local entrepreneur, your business isn’t just another asset — it’s likely the result of years of hard work and sacrifice. A low-cost, templated estate plan won’t take into account the complexities of your:
Operating agreement (if you own an LLC)
Corporate bylaws (if you own a corporation)
Business succession plans
Buy-sell arrangements
Tax considerations unique to Hawai‘i
And yet, these elements are essential for protecting your ʻohana and your business legacy.
What Happens If Your Business Isn’t Properly Included?
Here’s a common issue: You’ve named your trust as the beneficiary of your business interests. But your LLC operating agreement hasn’t been updated. It doesn’t allow for that kind of transfer — and worse, it gives control to someone who’s no longer involved.
Suddenly, your plan to provide for your family turns into a courtroom battle. And all of this can be avoided with thoughtful, aligned planning.
Real-Life Example (And Warning)
Michael, a Honolulu business owner, created a trust for his children and named his brother as trustee. But his business bylaws hadn’t been touched in years. When Michael passed away unexpectedly, his brother tried to manage the company, but the bylaws still gave decision-making power to an old business partner.
The confusion drained over $100,000 in legal fees and nearly shut the business down. Michael’s children inherited almost nothing.
The Key Documents You Need to Review
If you own a business in Hawai‘i, your estate plan must align with the following:
LLC Operating Agreements
Ensure your membership interest can transfer to your trust
Set clear successor protocols
Include business continuity strategies
Corporate Bylaws
Spell out how shares are handled after death
Name emergency leadership
Coordinate with your estate plan to avoid conflict
Buy-Sell Agreements
Provide liquidity for your estate
Avoid forced asset sales
Ensure smooth transitions for business partners or family
How I Help Honolulu Business Owners Protect Their Legacy
When you work with me, I don’t just create a basic estate plan — I build a comprehensive Life & Legacy Plan tailored to your business, your family, and your future.
Here’s how we do it:
Plan Review: I can assess your current estate and business documents to uncover misalignment.
Custom Integration: I can ensure your estate plan aligns with your overall business planning goals.
Ongoing Review: As your business evolves, I offer systems to review and update both sets of documents regularly.
This is about more than legal compliance — it’s about protecting everything you’ve worked for.
FAQs
Isn’t my business already covered by my trust or will?
Not unless your operating agreement or bylaws allow it. Most generic documents do not.
Can’t my financial advisor or CPA handle this?
While they may be involved, only an estate planning attorney licensed in Hawai‘i can ensure your personal and business plans are legally aligned and enforceable.
How often should I review my business estate plan?
Annually — or whenever there’s a change in your business, family, or the law.
Build a Plan as Strong as Your Business
Your business is more than a line on a balance sheet — it’s your livelihood, your legacy, and often your family’s future. Don’t let it all fall apart because of a generic or incomplete estate plan. If you’re a business owner in Honolulu or anywhere in Hawai‘i, now is the time to take the next step.
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📅 Schedule your Family Wealth Planning Session here
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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 Family Wealth Planning Session. Mention this article to learn how you can receive this $750 session at no charge.
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.
