Ensuring that your assets are passed on to your heirs appropriately can be a complex process. But with some planning, some communication, and perhaps some professional help, you can take steps that can help you to feel more confident that you’ve done everything you can to set both you and your inheritors up for success.
Here are some important considerations when developing a plan for your long-term legacy.
1. Have you articulated your legacy goals?
Before you begin divvying up your assets among your inheritors, have you reflected on what it is you hope to accomplish by passing on your wealth? Articulating your legacy goals up front can be helpful when determining what you pass to whom and how you go about it. It can also make communicating the rationale behind your decisions to your family easier—an important part of developing an effective wealth-transfer plan.
Such goals could include helping to ensure your family is safe from financial or medical distress, supporting an heir’s entrepreneurial goals, establishing college funds for kids and grandkids, or contributing to your favorite non-profit or charitable endeavor. Whatever your preference, having a clear vision of the impact you want your money to have will make for a more constructive planning process.
2. Are you subject to the federal estate tax?
In the US, the federal government imposes an estate tax with a top rate of 40% on large estates when an individual passes away. However, this tax only applies to the portion of the estate that exceeds the federal estate tax exemption. In 2026, this exemption is $15 million for an individual, or $30 million combined for a married couple.
Read more: What is the estate tax exemption?
If you believe that your estate may exceed the federal exemption amount at the time of your death, consider steps to move assets out of your estate to reduce your exposure to the estate tax. While there are several methods of accomplishing this, one of the most effective may be to establish a trust for the benefit of your heirs. What type of trust you select and the conditions you set out for it will depend on your personal preferences and goals, so it’s important to consult with an estate planning professional to determine which makes sense for you.
Read more: Getting started with trust planning
3. Are you subject to a state estate tax?
Even if your estate is not large enough to be impacted by the federal estate tax, you may need to account for estate taxation at the state level. In 2026, a number of states plus the District of Columbia levy estate taxes on individuals, and the exemption amounts at this level are often far lower than at the federal level. For example, the exemption amount in the Commonwealth of Massachusetts in 2026 is only $2 million.
Read more: Don’t take the "state" out of estate planning
If you live in a state that has its own estate tax, it will be important to work closely with an estate planning attorney who can help you navigate the nuances of your state’s particular laws.
4. Is your inheritor subject to a state inheritance tax?
Estate taxes are paid by the estate of the deceased. Inheritance taxes, however, are typically paid by the recipient of the inheritance, and you may want to take them into consideration when deciding how much you want to gift your heirs. Several states have an inheritance tax, and Maryland has both an inheritance and an estate tax.
Each state has its own rules and exemptions, so working with an experienced professional who understands the laws in your heirs’ state can be critical to help ensure that what you leave behind has the impact you desire.
5. Have you named your beneficiaries?
Making sure that your bank, brokerage, retirement accounts, and life insurance policies all have completed beneficiary designations can greatly streamline how your assets pass to the next generation. Beneficiary designations supersede the instructions in your will, and assets passed on in this manner do not have to go through the probate process, making for a faster and potentially less costly transfer of wealth. An estate planning attorney can help you determine how to complete these forms.
6. Have you titled your assets properly?
Similar to naming beneficiaries, titling real estate assets, bank accounts, and brokerage accounts as “joint tenants with right of survivorship” (JTWROS) or “joint tenants by the entirety” can help ensure that your co-owner can inherit the asset directly and avoid the complexities of probate. Note, however, that there may be reasons why you might not want to hold assets as joint tenants. An estate planning attorney can help determine an appropriate titling for your situation.
7. Have you left clear instructions regarding personal items or heirlooms?
When planning to leave an inheritance, it can be easy to overlook the small things. While personal items or heirlooms may not have a substantial monetary value, they can have tremendous emotional value to your loved ones, and failing to account for them properly can lead to serious conflicts between family members when you’re gone.
A written plan that clearly articulates who gets what and why can help avoid those conflicts. But be sure to talk to your family about your decisions and listen to their perspectives when developing your plan.
8. Have you considered lifetime gifting?
One way to remove assets from your taxable estate is to consider gifting assets to your heirs now, while you are still alive. Lifetime gifting can help reduce your exposure to estate and inheritance taxes and allows you to see how your gifts benefit your heirs in the present. In 2026, an individual may gift up to $19,000 ($38,000 combined for a married couple) to another person tax-free.
The assets you choose to gift and the method through which you gift them depend on your personal goals and concerns, and thoughtful planning around how to make gifts is necessary to ensure both you and your heir are able to fully reap the benefits.
Read more: The tax benefits of lifetime gifting
9. Have you accounted for your heirs’ individual circumstances and capabilities?
Sometimes, treating people fairly does not mean treating people equally. Perhaps one of your heirs has a greater financial need than the others, or maybe you aren’t confident in an heir’s ability to properly manage what they receive. Some assets, such as real estate or heirlooms, may be difficult or impossible to divide. Whatever the reason, you may find that you need to divvy up your wealth unequally among your inheritors.
While this situation can be fraught, what’s important is to keep the lines of communication open, and to consider planning strategies that can help mitigate the emotional response to a financially unequal division of assets.
10. Have you communicated your plan to your heirs?
Broaching these topics with your family can be difficult. But it’s vitally important to ensuring that your plan is effective, and especially critical if you want to help ensure that your family remains on good terms in the future. Setting up a clear framework for discussion in which everyone understands their roles and responsibilities with regard to family wealth can help facilitate more constructive conversations and help avoid unwelcome surprises down the road.
Additionally, these family conversations give your heirs the opportunity to express their thoughts and feelings about the inheritance. What you hear may influence your ultimate decision about how assets are allocated and distributed.
Read more: How families can get started on estate planning conversations
11. Do your heirs understand your money values?
Beyond the practical details of your plan, you should also make an effort to convey your money values to your inheritors. That is, you should explain what the money you are passing on means to you and the story behind how you grew the family’s wealth over time. By giving your heirs a deeper appreciation for the family’s wealth—beyond just its monetary value—you may help them better appreciate the responsibility they have to manage it wisely.
Read more: How to pass on your money values
12. Are you confident in your executors and trustees?
Selecting the fiduciaries who will represent you when you are gone is an essential part of making sure your plan is handled appropriately. The executor of your will and the trustees who manage assets you have left in trust are entrusted with a serious responsibility. You should select competent and capable representatives that you trust to carry out their duties faithfully. Depending on the complexity of your estate, it may be wise to engage with a corporate trustee who is more likely to have the skills and resources available to navigate the challenges and changes of trust and estate law.
Read more: Trustee vs. executor: What’s the difference?
13. Are your documents in order and accessible?
Your plan won’t be of much help to your loved ones if they don’t know where to find it. Important documents such as wills, powers of attorney, health care proxies, insurance policies, and trust documents—not to mention important passwords and contact information for fiduciaries—should be kept in a safe place accessible to your family so that when the time comes, they are able to access them and begin carrying out your wishes.
Read more: Avoid a financial scavenger hunt after death