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Key Takeaways

  • Consider emotions, liquidity needs and personal circumstances—not just dollar value—when distributing your assets.
  • Before you start dividing up assets, consider your purpose and values.
  • Various assets are taxed differently, which may affect how you choose to distribute them.
  • Distribute assets in the way that provides the most value to your heirs.

Taxable investment accounts, traditional and Roth IRAs, workplace retirement savings accounts, a family home, special collections and a family business may be a meaningful part of your wealth. As you think about how to transfer that wealth to the next generation, it’s easy to start focusing on the bottom-line number you hope to leave behind.

While the number matters, a dollar is not always simply a dollar depending on how it is inherited. Two assets with the same market value can have very different implications for the people who inherit them. Each asset type can carry different tax considerations, distribution requirements, liquidity constraints, administrative responsibilities and emotional weight.

Here is how to help ensure the assets you leave to others support the broader outcome you want your wealth transfer plan to achieve.

Look past the dollar sign

Before you start dividing up assets, consider your purpose and values. Your goals may include a combination of:

  • Creating the simplest possible transfer
  • Minimizing taxes
  • Treating children and loved ones fairly
  • Preserving a family property or other significant asset
  • Providing for a specific heir
  • Maintaining a family business
  • Supporting philanthropy or a community cause

Each goal may point you in a different direction. For example, if simplicity is your priority, cash and publicly traded assets like stocks, bonds and mutual funds are easier to divide than property or the ownership of a family business. But if preserving a family vacation home or business is important for maintaining your family’s legacy, you
will want to consider how you will support the next generation’s ongoing ownership.

Consider the tax implications of specific assets

Diversification and flexibility are keys to wealth transfer. The same goes for estate planning. Various assets are taxed differently, which may affect how you choose to distribute them. 

For example, pre-tax retirement accounts like traditional IRAs are generally taxable as income to beneficiaries and may be subject to specific distribution rules. For some heirs, especially those already in their higher income years, those distributions can create a less favorable aftertax outcome. Roth accounts may offer different advantages because qualified distributions can generally be received tax-free. For taxable brokerage accounts, appreciated investments may receive a step-up in cost basis at death, which may reduce or eliminate capital gains for heirs and lower their tax liability when they decide to sell.

Consider liquidity and complexity

For your heirs, an asset like cash or stock is simple to divide, receive and use. But what about assets like art, jewelry, a boat, real estate or collectible? Not only can they be harder to value, they are by nature difficult to divide among family members and heirs.

There are many things to consider, for example, with an asset like a vacation home, including title, responsibility for upkeep and how usage will be scheduled. You might also plan for the different opinions each heir may have about maintaining or selling the vacation home.

Another common asset that often creates complexity is a family business. If one family member works in the business and another doesn’t, dividing ownership equally may not be possible due to liquidity constraints. In cases like these, consider carefully who receives ownership, who has control and whether there is sufficient liquidity to create balance among heirs. In some cases, life insurance policies can be a viable approach to creating the necessary liquidity.

Some family members and loved ones may appreciate an asset for its sentimental value, while others may see the item as a burden to maintain, manage or sell. The last outcome you want is for your gift to become a source of conflict or strain. Consider both the dollar value and emotional value of illiquid assets so your plan reflects the full impact of the gift to the people who inherit it.

Match assets to the heir

In estate planning, fair doesn’t always mean equal. Each heir’s specific circumstances, such as age, financial maturity, need and personal relationship, may impact what you leave. For example:

  • A child with a high-income profession may experience taxable distributions from an inherited traditional IRA or 401(k) differently than a child with low income.
  • A teenage grandchild may need structure around when they receive their full inheritance and how it can be used, while a grandchild who has reached full adulthood may expect more flexibility.
  • A family member who lives nearby may want to inherit and live in the home you may own, while one who lives farther away may prefer liquidity.

Ultimately, your plan should distribute assets in the way that provides the most value to your heirs. By looking beyond the dollar amount, you can build a wealth transfer plan that gives each asset a purpose, so your legacy passes to the next generation smoothly and meaningfully.

 

Views are as of August 2026 and are subject to change based on market conditions and other factors. The opinions expressed herein are those of the author(s), and do not necessarily reflect those of Eastern Bankshares, Inc., Eastern Bank or any affiliated entities. Views and opinions expressed are current as of the date appearing on this material; all views and opinions herein are subject to change without notice based on market conditions and other factors. These views and opinions should not be construed as a recommendation for any specific security or sector. This material is for your private information, and we are not soliciting any action based on it. The information in this report has been obtained from sources believed to be reliable but its accuracy is not guaranteed. There is neither representation nor warranty as to the accuracy of, nor liability for any decisions made based on such information. Past performance does not guarantee future performance. Eastern Bank does not provide legal, tax or accounting advice. You should consult your legal and/or tax advisors before making any financial decisions.