You've worked hard to build your wealth, and a thorough estate plan can help protect it for the next generation. But estate planning often involves more moving parts than people realize—from trusts and wills to retirement accounts and life insurance—and it's easy for important details to get overlooked.
Whether you’re creating a plan for the first time or revisiting an existing one, it’s worth checking to make sure everything still reflects your wishes and works together the way you intended. Here are five important estate planning strategies that many people miss.
1. Ensure the orderly distribution of your assets
Most people already know they should name beneficiaries for assets they plan to pass on, but it's just as important to make those instructions as clear as possible to avoid probate court, potential lawsuits, or family disputes.
Simply naming beneficiaries may not be enough if your situation includes:
- Children from a previous marriage
- A child with special needs
- A family property that will eventually be shared by several children
- An heir who is a minor or has demonstrated poor financial judgment
Also, review and update your designations after:
- Major life events (marriage, divorce, birth, and death)
- The purchase or sale of significant assets
- Changes to federal or state estate tax laws
2. Make sure there's someone ready to take the reins
No one likes thinking about worst-case scenarios, but preparing ahead can make things easier for your loved ones if something unexpected happens.
Consider designating someone as a Power of Attorney (POA)—a trusted agent or person who can handle financial, legal, business or real estate matters on your behalf if you become unable to manage them yourself.
A POA can be structured based on when it takes effect and how long it remains effective:
- Durable: Remains effective regardless of your capacity
- Nondurable: Generally ends if you become incapacitated.
- Springing: Takes effect when a specified event or condition occurs, such as incapacity or military deployment.
You can also define the scope of authority granted by your POA:
- General: Grants broad authority across financial, legal, and business matters, subject to applicable law and any limitations in the POA.
- Limited or special: Grants authority for specific matters or purposes that you define.
For medical decision-making, an Advance Health Care Directive (AHCD) allows you to outline your health care preferences, and designate someone to make health care decisions on your behalf if you are unable to do so.
You should review these documents periodically to ensure they still reflect your wishes and that your designated agents are still appropriate and available. Consult with your estate planning attorney to see which options make the most sense for your situation.
3. Cementing your legacy through charity, and lowering your taxes along the way
Amassing your wealth likely took decades of hard work and smart financial planning. It can also create opportunities to support the people, organizations, and causes that matter most to you. In some cases, charitable giving strategies may also provide meaningful tax benefits.
One commonly used strategy is a qualified charitable distribution (QCD) from a traditional IRA.
Once you reach age 73, the IRS generally requires you to start taking required minimum distributions (RMDs) and paying taxes on most types of tax-deferred retirement accounts. However, a QCD may allow you to direct some or all of those distributions to a qualified charity instead, which can help reduce the taxable portion of your withdrawal.
Key QCD details for 2026:
- Available starting at age 73, when RMDs generally begin
- Individual limit: $111,000, indexed for inflation
- Married couples filing jointly: up to $222,000 combined from individual IRAs
- Funds must go directly to a qualified charity to reduce the taxable portion of your withdrawal
With the right planning, charitable giving can become a meaningful part of both your legacy and your broader estate strategy.
4. Build a smart estate planning team
While there are some aspects of estate planning you may be able to handle on your own, more complex strategies are often best navigated with experienced professional guidance.
Your estate planning team may include your relationship manager, estate planning attorney, tax professional, accountant, insurance advisor and trusted family members. The most effective plans are often built when everyone involved is aligned and working toward the same long-term goals.
5. Make your estate smaller to minimize taxes
At first, the idea of shrinking the size of your estate might seem counterintuitive. But in some situations, transferring assets during your lifetime may help reduce future estate taxes and preserve more wealth for your heirs and beneficiaries. Generally speaking, the smaller your estate, the less your family may owe in estate taxes.
2026 federal estate and gift tax exemption:
- $15 million per individual
- $30 million for married couples
- Estates above these thresholds may be subject to federal estate taxes
Depending on your goals and family situation, there are a number of ways to reduce the size of your estate, including:
- Transfer (gift) ownership of your assets to your heirs before you die;
- Strategic gifting of assets to loved ones and others, either outright or in trust;
- Making qualified donations to charity;
- Strategic college funding.
For example, some people choose to transfer certain assets, such as a life insurance policy or a home, to an irrevocable trust during their lifetime. Depending on how the trust is structured, this may help reduce the size of their taxable estate and potentially reduce future estate taxes. Meanwhile, other assets, such as business interests and investment portfolios, can remain available to support the lifestyle they want today and in the years ahead.
Begin a conversation
Think of these strategies as tools to help ensure your wealth supports the people and causes that matter most to you.
For thoughtful guidance around estate planning and the full scope of your financial life, reach out to your relationship manager at Bank of Hawaii The Private Bank.
This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax or investment advice. You should consult your own tax or accounting advisors before engaging in any transaction.
