When you plan to leave assets such as a 401K, financial accounts, homes, cars, etc. to your loved ones, it’s imperative that you consider the tax liabilities associated with each asset. For example, leaving a 401K account to a spouse is tax-free, but leaving that same 401K account to a child will incur tax penalties. As part of your estate plan, ensure that you speak with a tax professional to determine the best structure to meet your families’ circumstances.
