You’ve likely spent decades working, investing, and growing your wealth. But as the saying goes, “You can’t take it with you.” Even if you plan to be buried Egyptian-style with all of your tangible valuables, it’s highly likely you own intangible assets, such as stocks, that you can’t stuff in your sarcophagus.
Many people plan to pass their assets to one or more heirs upon their death, such as a spouse or children. But others either have no heirs to give their assets to, or have reasons not to pass along wealth to their immediate family.
That doesn’t mean you have no choice but to let your hard-earned net worth go to distant relatives you’ve never met or into the government’s pockets.
Today, I’m going to discuss several options for what to do with your assets if they won’t be going to heirs. Having a plan in place can give you financial clarity and peace of mind—and maximize the impact of your giving, no matter where your wealth eventually lands.
The information and analysis contained within this article appears for your consideration, but it does not constitute individualized financial advice. Always act at your own discretion.
Your No-Heir Asset Protocol
Nothing is forcing you to bequeath everything you own to a single person or organization. Adopt as many of the suggestions below as you see fit.
And if you’re considering one of the multiple charitable options I highlight below, make sure to keep reading, because I’ll also highlight a couple of important recent tax changes you should know.
Just remember: Estate planning—no matter who you’re passing assets to—can be complex, so I highly recommend discussing your desires with a financial advisor and an estate planning attorney.
1. Support Someone You Care About
An heir, in the legal sense, is someone who may legally receive property or assets from a deceased person’s estate—it’s virtually always a family member.
But you don’t have to leave assets to heirs—you can choose to leave your assets to a beneficiary, which covers basically anyone who isn’t an heir. For instance, you could choose to leave your investments to a close friend who you know could use the financial aid, or you could pass along money to a kind nurse, a helpful coworker, or a nice neighbor.
It’s completely up to you.
However, you must ensure you have a legally binding will or trust that carefully lays out how you want your assets distributed. If you have retirement accounts or a life insurance policy, make sure to update your beneficiaries to your chosen person. (Note: Beneficiary designations override will instructions.) Both of these tasks are extremely important—failing to do so could very well result in your wishes not being fulfilled.
Beneficiaries may need to pay taxes on what you leave. That’s not necessarily an issue when you’re passing along money or securities that can be liquidated to help pass the bill, but it can be problematic if you’re passing along physical property. You’ll want to discuss these potential consequences with a financial advisor, who may also be able to help you lessen the tax burden your beneficiaries might carry.
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2. Donor-Advised Funds
People commonly donate at least a portion of their assets to charity upon their death. In the absence of heirs, you might donate a significant portion, or even your entire net worth, to nonprofits and other organizations supporting your favorite causes.
If you already have a charitable organization or two in mind that you want to help, great! If not, you can use resources such as Charity Navigator to find options that align with your values. (You can also use Charity Navigator to ensure the organization you already (or want to) donate to is a good steward of donated funds.
A donor-advised fund (DAF) is a relatively straightforward way to maximize your donations to charitable organizations. You make an irrevocable contribution of cash, securities, real estate, and/or other assets, and you receive an immediate tax deduction for the full fair-market value. (The deduction is subject to annual adjusted gross income, or AGI, limits; generally 30% of AGI for appreciated assets, and 60% for cash.) You can also continue contributing to the DAF over time.
Assets in a donor-advised fund are shielded from taxable events such as capital gains and investment income distributions to the account. And you can continue contributing to the DAF over time should you wish.
Once you’ve funded a DAF, you can recommend grants to 501(c)(3) charitable organizations as you wish. You can visit the Internal Revenue Service (IRS) to see how it determines what counts as a 501(c)(3) organization.
Related: How Much Social Security Will I Receive?
3. Charitable Remainder Trusts
A charitable remainder trust (CRT) is another tax-advantaged way of passing along your wealth to charitable organizations while also producing a stream of income to you or another noncharitable beneficiary.
You can fund the trust with similar assets as DAFs: cash, publicly traded securities, real estate, and/or other assets. Assets inside the trust are also shielded from taxable events.
However, charitable remainder trusts differ from donor-advised funds in several ways:
- The trust pays you (or another noncharitable beneficiary) a stream of income for up to 20 years, or for the life of at least one non-charitable beneficiary.
- Your designated charity receives any remaining assets (the “charitable remainder”) upon your death. The charity generally must also be a 501(c)(3) organization.
- You receive an immediate deduction, but only on the expected charitable remainder (subject to the same annual AGI limits as donor-advised funds).
Also, there are two types of CRT, each of which have slightly different rules:
- Charitable remainder unitrust (CRUT): Pays a fixed percentage (at least 5% but no more than 50%) of the trust’s value, which is determined on an annual basis.
- You can make additional contributions to a CRUT.
- Investment performance within the trust, as well as additional contributions, can change the amount of income you or the noncharitable beneficiary receives.
- Charitable remainder annuity trust (CRAT): Pays a fixed dollar amount every year, calculated as a percentage (at least 5% but no more than 50%) of the initial trust value.
- You can not make additional contributions to a CRAT.
- Investment performance within the trust will not change the amount of income you or the noncharitable beneficiary receives.
CRTs are frequently used to shield highly appreciated assets from taxable events. Let’s say that within a taxable brokerage account, you owned stock with a low cost basis that had significantly appreciated over the years. If you sold it within the brokerage account, you would be responsible for capital gains taxes, which even at the more favorable long-term capital gains tax rates could still be significant. However, if you donated that stock to the trust, the stock could be sold within the trust and be exempt from capital gains taxes. (The downside? You can’t withdraw principal assets from a charitable remainder trust. But generally, the greater the trust’s assets, the more you can withdraw each year.)
In short: Charitable remainder trusts allow you to pass on assets while also providing you with a partial tax break and a stream of income.
Related: How Long Will My Savings Last in Retirement? 4 Withdrawal Strategies
4. Private Foundations
Private foundations (sometimes called private family foundations) are usually founded by either an individual or a family. You fund it with tax-deductible gifts of cash or other assets.
Unlike donor-advised funds, grants aren’t limited to qualified 501(c)(3) charities. This is a useful option if you want to donate to a charity that participates in campaign activities for political candidates that align with your views.
However, because of this, deductions work a little bit differently. Cash given to private family foundations is deductible only up to 30% of annual AGI, while appreciated assets like stocks are only deductible up to 20% of AGI.
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5. Spend More Now
If I’m being frank, you don’t have to be altruistic.
One final strategy is to spend most of your money while you’re living and die with as close to $0 as possible. You might travel the world, dine almost exclusively at Michelin-starred restaurants, and wear jewelry Elizabeth Taylor would envy.
However, if you want to take the spendthrift route, it’s even more crucial that you have an airtight retirement plan. That includes preparing for the possibility of declining healthcare later in life.
For instance, Medicare and Medigap don’t cover the costs of all types of long-term care; you might want to purchase private long-term care (LTC) insurance. According to the 2025 Milliman LTC Index, the projected average amount a 65-year-old would need to put aside to cover average, expected future lifetime costs of LTC would be about $98,000 for men and $171,000 for women. (This assumes a 4.35% investment return rate and that necessary services are paid at commercial market rates.)
Want a comprehensive look at some of those associated expenses? Check out my guide to healthcare costs in retirement.
Related: 7 Expenses That May Be Missing From Your Retirement Budget
OBBB Tax Considerations
The 2025 passage of the One Big Beautiful Bill created a couple of tax changes, effective starting in 2026, for those looking to make significant contributions to charitable organizations:
- You cannot claim a charitable deduction unless your charitable donations exceed 0.5% of your annual AGI.
- Example: Your AGI for 2026 is $300,000. You can only claim a deduction on gifts of more than $1,500.
- If you belong to the highest tax bracket (37%), your maximum reduction is limited to 35%.
- Example: You are in the 37% tax bracket and are claiming a $150,000 deduction for donations in 2026. Previously, you would have been able to reduce your taxes by $55,500. Starting in 2026, your reduction would be limited to $52,500.
Related: How to Choose a Financial Advisor
Health Decisions Are More Important Than Wealth Decisions
As you plan for what will happen to your wealth after you pass away, don’t forget to plan for what may happen to your health toward the end of your life. Without a clear heir, you’ll want to designate an individual who can make decisions for you in case of incapacitation.
A durable power of attorney for healthcare authorizes a person to make medical decisions on your behalf. Additionally, a living will can detail the health interventions you would and wouldn’t like to receive to keep you alive.
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