You have worked hard for your money, and you should be able to determine who gets your money when you pass away. In order to keep your money in your family though, there are some steps that you are going to have to take now.
#1 Create A Will
The most straightforward way to protect your money and make sure that it stays in your family is by drawing up a will. Many adults don't think they need a will because they don't have a lot of assets or just have not bothered to draw up a will, banking on their morality.
Drawing up a will is essential though. When you fail to draw up a will, money will be lost to the court system as all of your assets will have to go through the court system and be divided by the probate courts. This will eat into whatever money you leave behind. The best way to protect your money and ensure it goes where you want it is through the creation of a will. For more information, contact an expert in estate planning.
#2 Name Your Beneficiaries
There are numerous accounts that are passed on to your named beneficiaries and not through your will. A few examples of accounts where you may have been asked to put down a named beneficiary include life insurance policies as well as retirement funds. It is a good idea to check and figure out who you listed as a beneficiary. If you have not listed anyone, determine who you want to leave that asset to. Any accounts that you don't specifically leave signed beneficiaries for will end up in probate court.
#3 Switch Over To Roth Accounts
If you are into your retirement years and don't have a spouse to leave your retirement funds to when you pass away, you may want to make some changes to your retirement accounts. If you have money invested in a traditional 401(k), whomever you gift your retirement to will have to pay income taxes on any money that they get from your retirement accounts.
If you switch from a traditional 401 (k) to a Roth IRA over time, all of the distributions will be tax-free for whomever you leave your retirement funds to. You want to do this over a long period of time so you don't increase your tax bracket at the same time.
If you want to keep your money in your family when you pass away, you need to take actions now. You are going to want to create at least a basic will that states who will get what assets. Be sure to update the will over time. For any accounts where you have to name a beneficiary, make sure that you have one down. Finally, consider slowly switching to a Roth IRA if you plan to leave your retirement funds to anyone other than your spouse. This will protect them from paying taxes on your retirement funds.