In This Chapter

These days, you don’t have to be rich to have a high degree of potential tax liabilities, and you don’t have to be a retired grand-parent to be concerned about leaving your retirement accounts to your kids or grandkids. Retirement plans are a powerful way to build a nest egg, but many people don’t pay close enough attention to what would happen to their accounts if they didn’t live to use them completely and had to provide for passing their investments to younger generations.

Depending on how you have your finances and accounts arranged, the special tax benefits of your retirement accounts can be extended to your family. However, if you’re not careful or if you’re just unlucky, you may end up passing your account to someone you didn’t intend to get it, such as a nursing home, or worse yet, Uncle Sam in the form of taxes.

No matter how you arrange your finances, we know the old adage is correct: you can’t take it with you. Regardless of your age or how big or small your accounts are, it’s important to manage your nest egg remembering you may leave it behind.