5 Things To Do With Your Assets If You Don't Have An Heir

Many people spend their lives working and building assets with the intention of passing them on to their children or grandchildren. But what do you do with those assets if you don't have an heir to inherit them? Fortunately, there are plenty of options — from supporting causes that are near and dear to you to spending more on yourself by enjoying new experiences or indulging in a higher quality of life.

While leaving money to future generations is one way to establish a legacy, if there are no heirs to bequeath your assets to, you have more freedom to choose a different path. This can open the door to a host of other possibilities. When deciding what to do, you should take inventory of what's most important to you and the impact, if any, you'd like to have. For some, that may be creating a will or a trust that leaves everything to one or several worthy causes, while for others, it could mean making the most of what life has to offer.

Many people choose to donate a portion of their assets to charity upon their death. A 2024 Giving USA report on charitable giving (via Stelter) found that these types of donations, referred to as charitable bequests, have accounted for almost 9% of total charitable giving over the past 40 years. In 2024, these donations exceeded $45 billion. While many wealthy Americans and celebrities with high net worths have promised to leave their money to charity when they die — with some already following through — this type of giving isn't only for the rich and famous. You don't need significant wealth to make a meaningful impact, and for those without heirs to consider, it's an option worth exploring.

When choosing a charity (or charities) to leave your assets to, a good first step is to select an organization that best reflects your values or priorities. These could include anything from religious institutions or humanitarian causes to health services or arts-and-culture institutions. Once you've narrowed down the type of cause you'd like to support, do your due diligence to ensure the nonprofit is financially stable, allocates its funds appropriately, and stays true to its mission. Resources such as Charity Navigator can be helpful in evaluating organizations using a range of metrics.

Many people set funds aside to pay for future educational costs of children or grandchildren. If you don't have any heirs but like the idea of making an impact by helping students pay for college or other educational expenses, creating a scholarship or grant to be funded upon your death may be a good approach. There are various ways to set up this type of fund, depending on your preferences.

If there is a specific high school, college, or educational institution that you attended — or that has otherwise had an impact on your life — you could work directly with the school to create a fund that would support students in need of financial aid. You could also request that the school create a grant targeted at specific programs or geared toward students who meet certain criteria. If you'd prefer to set up a program that isn't tied to a particular school, you could work with a charitable organization to create your own grant that selects recipients based on financial need, location, academic interest, or other priorities.

Whether you live in a charming coastal town, a remote mountain region, or a bustling city, it's likely your community has had a major impact on your life. You could feel a sense of attachment to a local theater where you perform, a YMCA you attend, a club that plays a meaningful role in your social life, or annual community events that you look forward to every year. Leaving your assets to a local organization can be a meaningful way to support the places that matter to you most while also building a legacy for yourself.

One way to leave your assets to the community is to name the organization directly in your will and outline how you'd like the funds to be used — whether that's supporting specific community programs, improving facilities, or helping with daily operations. Another option is to go through a community foundation. These public nonprofits focus on specific needs in a given location and can help ensure your money is directed to local causes you care about.

If you want to name a beneficiary for your assets and there are no heirs in the mix, consider naming another relative, friend, or caretaker that has played a meaningful role in your life. If no one fits the bill, you may also choose someone you'd simply like to help. Regardless of whom you designate, it's important to have a legally binding will or trust that clearly states how you want your assets distributed to avoid any confusion or disputes. 

If you have a life insurance policy or retirement accounts that require a beneficiary to be named, make sure those designations are updated to reflect your wishes — this is true whether you're planning to leave them to a person or a charitable organization. Keep in mind that beneficiary designations override instructions in your will, so it's essential that they remain up to date. It's also worth noting that in some states, a person may pay taxes on inheritance if they aren't related to you, or even if they are related but not part of your immediate family.  If you plan to leave your assets to someone other than an immediate relative, it's a good idea to consult an estate professional to understand the potential tax implications. 

While earmarking assets for great causes and worthy people can be a great option for some, others who aren't concerned with supporting future beneficiaries may prefer a less altruistic route. Depending on your age and the size of your nest egg, you may want to start drawing down your savings to finally enjoy the fruits of your labor.

This may mean elevating your quality of life by buying a vacation home, purchasing a new car, joining a golf club, or moving to a location you've always wanted to live in. If you're more adventurous, it could mean taking a dream trip to an expensive vacation destination or crossing some unique experiences off your bucket list. Whichever way you choose to spend your money, be sure you run the numbers before you start draining your savings, so you don't end up in a difficult financial position down the line.