6 Things To Do With Your Assets If You’re Not Leaving Them to an Heir
Written by
Jacob Wade
Edited by
Amber Barkley
Commitment to Our Readers
GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.
20 Years
Helping You Live Richer
Reviewed
by Experts
Trusted by
Millions of Readers
While just getting to retirement is an accomplishment in itself, you might be wondering what to do if you have money and assets leftover toward the end of your life. While many retirees wish to give an inheritance to their children and grandchildren, there are alternatives to gifting your money and assets when you pass.
Here’s a few options to consider for your assets if you don’t plan on leaving them to any heirs.
Donate Your Assets
If you don’t have any heirs that you can give your assets to — or you don’t want to give away any inheritance to family or friends — you can choose to donate your assets instead.
This can be formalized in your will to have your assets distributed to causes and organizations you care about. You can also set up a Donor Advised Fund (DAF) while you’re still here and place the assets into the DAF as a tax-deductible donation. The DAF will then direct funds toward charities of your choosing on a time interval you specify.
You can also set up a charitable remainder trust that acts somewhat like an annuity — paying you an income from your assets for a set period of time or for life — and the remainder is donated once you pass away.
Leave Money to Someone You Care About
Even if you don’t have heirs or family members you want to leave an inheritance to, you can still give your assets to someone you care about. Whether it’s a good friend or a random stranger, you can add someone you love to your will and give them whatever you wish.
It’s important to create a will if you’re gifting assets to someone that is not directly related to you. This ensures that your money and assets get to the person you specify instead of distant relatives that you don’t intend to leave anything to.
Give Away Money Now
It might be better to give away money before you’re gone instead of gifting money through your will or another donation vehicle. This could include things like:
- Giving cash donations to friends or family to help them purchase a home
- Funding 529 accounts for nieces, nephews or friends’ children
- Gifting property or vehicles to charity
- Setting up a scholarship or grant for a cause your believe in.
Not only can you enjoy giving money away now, but you can deduct up to 60% of your adjusted gross income (AGI) on your taxes, as well.
Spend More Money
Listen, if you don’t want to leave any money behind, you might need to spend more.
- Go on that around-the-world cruise
- Spend a few months in Paris
- Buy the boat you’ve always wanted
- Get an RV and tour the country
- Host a catered dinner party for you and all your close friends.
If you have more than enough but don’t plan on having anything leftover, you’ll need to start spending more. And you can enjoy all of that spending right now.
Put Your Assets in a Trust
While getting a will in place is the bare minimum to ensure your money and assets go to the right people and places after you die, a trust offers more control and protection.
Setting up a revocable trust makes sure your assets are protected from the probate process and allows them to be distributed more quickly. And a revocable trust allows you to dip into the funds if needed — such as an expensive injury or illness.
A trust can also protect you from some estate taxes, allowing more money to go where you direct. And even without heirs, a trust is a more secure way to distribute your assets.
Do Nothing
If you choose to do nothing with your assets, your state’s probate process will distribute them. The distribution process usually goes in this order: surviving spouse, children and then grandchildren. But if you have none of those heirs, your assets might go to parents, grandparents, siblings, nephews, nieces — or even to the state.
This is usually not suggested, as you’re effectively letting the state determine where your hard-earned money and assets go. But if you choose to do nothing and don’t want to think about it, this is how your assets will be handled.
More From GOBankingRates
