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When most people think about inheritance, their minds go straight to the obvious: real estate, investment accounts, maybe a family business or art collection. These are the assets that, understandably, get top billing in estate plans.

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But for wealthy families, the most valuable thing you can pass down might not be measured in dollars at all.

It's the plan behind the wealth. And it's what keeps fortunes intact across generations.

The asset most families forget

We're talking about something far less tangible yet far more powerful: your financial blueprint. That includes your estate documents, instructions, passwords, advisor network, family values, and everything else your heirs will need to make smart decisions after you're gone.

In other words, the asset that turns a windfall into a legacy.

It sounds simple, but too many high-net-worth families neglect this part of their estate -- and end up costing their heirs time, money, and emotional strain.

When the money's there, but the plan isn't

Consider this: A family inherits $10 million across accounts, properties, and business interests. But no one knows where the documents are. The executor isn't sure who manages the trust. One adult child wants to sell the vacation home, the other wants to keep it. Accounts get frozen. Lawyers get called. Probate drags on.

Now contrast that with a $10 million estate where everything is in a trust, instructions are clearly documented, and the heirs have already met with the family's advisors. The process is fast, tax-efficient, and drama-free.

That's the difference a plan makes. Looking for an advisor? You can use this free tool from our partner SmartAsset that can match you to a fiduciary advisor.

What this overlooked asset actually looks like

It's not a single document but a framework that ties your entire estate together. Think of it as the owners manual for your wealth. At minimum, it needs to include:

• A clearly written and updated will.
• Trust documents that reflect your current goals.
• A consolidated list of accounts, policies, logins, and other places where valuables and documents are stored, like safe deposit boxes and safes.
• Letters of instruction for your executor or trustee.
• Contact info for your estate attorney, tax advisor, and wealth advisor.
• A simple explanation of how you want your heirs to use the wealth -- whether that's preserving it, donating it, or growing it.

For families with significant assets, you might also include a mission statement, a legacy letter, or even a private video explaining your vision. These aren't just sentimental, but they help unify heirs around your intentions.

How to build and maintain it

Creating this kind of clarity doesn't have to be overwhelming. Here's how to start:

1. Get organized

Pull together your documents and financial account info into a central file or secure digital vault. Make sure your executor knows where it is and how to access it.

2. Work with a team

Coordinate your estate attorney, tax professional, and wealth manager. Make sure they're on the same page and that your heirs know who to call if something happens. Don't have an advisor? The advisors on our partner SmartAsset's platform have been rigorously vetted through their proprietary due diligence process.

3. Update regularly

Life changes. Laws change. Make it a habit to revisit your plan annually or after any major life event.

4. Communicate with your heirs

Consider hosting a family financial meeting or creating a legacy document. Even if you don't share exact dollar amounts, communicating your goals helps prevent misunderstandings. This is also especially helpful in letting heirs express their wishes about inheriting non-financial property like family heirlooms, jewelry, photo albums, and other items of nostalgic value.

Don't just leave money -- leave a map

With estate tax exemptions currently set to shrink after 2025, high-net-worth families will soon face more complexity and higher stakes. Without a clear framework, your wealth is more vulnerable to taxes, fees, and family conflict.

This type of planning doesn't just protect your assets. It protects your vision.

You've worked hard to build something meaningful. But if your heirs don't have a plan, even the best investments can lose value.

So treat your instructions, your relationships, your philosophy, as part of the inheritance itself. It could be the most powerful gift you ever give.

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My wife and I became millionaires fairly early in life. And while you might think we won the lottery or were early crypto adopters, the truth is painfully unsexy…

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We just started automatically investing a portion of every paycheck, stuck with it, and let time do the rest.

That one habit changed everything for us. And it's the exact same step I recommend to literally anyone who wants to retire wealthy.

How a tiny investment grows into $1 million

One of the biggest complaints I hear people saying is, "I can't save very much."

But what they don't realize is how little amounts can grow to massive numbers over time. It's all due to compound interest.

Here's an example using $300 per month. If you invested each month with an 8% average annual return (a common long-term stock market estimate), here's how it would grow over time:

That's just ten bucks a day. And if you can double that savings to $600 per month, you will double all those future values.

You can start with even less. The habit matters more than the amount. Over time, as you earn more or have more breathing room, you can increase your contributions.

Even better, automate your investments. If money goes straight from your paycheck to your 401(k), you'll never have a chance to spend it -- and you probably won't miss it.

Not sure how to get started? With our partner, SmartAsset, you can get matched with up to three fiduciary advisors so you can get professional advice.

Best "set-and-forget" investing accounts

If you want to build wealth on autopilot, these accounts make it easy to invest consistently and forget about it until retirement.

401(k): Invest straight from your paycheck

If your job offers a 401(k), that's usually the easiest place to start. Money gets taken out of each paycheck and invested before it even hits your bank account. Plus, many employers offer a match -- and that's free money.

A Roth or traditional IRA

A Roth IRA is great if you're still in a lower tax bracket, because withdrawals in retirement are tax-free. A traditional IRA gives you a tax deduction now, but you'll pay income tax on your withdrawals later.

Either way, IRAs are simple to set up and perfect for building that automatic investing habit. Open your first IRA with one of these top-rated brokers.

A regular brokerage account

I encourage everyone to prioritize their 401(k)s and IRAs, because they have tax advantages and are built for retirement saving. But if you've already maxed those out, go with a standard brokerage account.

No matter what account you invest in, make sure to set up those recurring transfers.

If you're consistent, the wealth will show up. Maybe not tomorrow, maybe not next year. But eventually compound interest will kick in and take over -- just like it did for me and my wife.

Want to talk with a professional? A short questionnaire from our partner, SmartAsset, helps match you with up to three fiduciary financial advisors, each legally bound to work in your best interest.

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We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

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You've done everything right: built a strong portfolio, invested in real estate, maybe even created a thriving business. But when it comes to passing that wealth on, capital gains taxes can quietly undo decades of smart financial planning.

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And for affluent families, the stakes are especially high. A mistimed transfer or a misunderstood tax rule can mean six- or seven-figure bills for your heirs. The good news is it can all be avoided. But it starts with knowing how capital gains really work when wealth changes hands.

What most families get wrong about inherited assets

Here's the core issue: If you give appreciated assets -- like stock, property, or even collectibles -- to your kids while you're still alive, the transferred assets retain your original cost basis. That means when they eventually sell, they're on the hook for capital gains taxes on the full difference between what you paid and the current value. It's worth mentioning that this only applies to assets that have gained value. Gifting assets at a loss is usually not a smart thing to do.

Now consider this: If those same assets are passed down after your death, your heirs may qualify for a step-up in basis, which adjusts the asset's value to the fair market value at the time of your passing. It's one of the most powerful, and overlooked tools for preserving inherited wealth.

A quick example:

• You bought stock for $200,000 that's now worth $1.5 million.
• If you gift it during your lifetime, the cost basis remains $200,000 for the recipients. When they sell, they could face a $1.3 million capital gain -- and a steep tax bill to match.
• If they inherit it after your death, their basis steps up to $1.5 million. Sell it at that value, and the taxable gain? $0.

It's a dramatic difference. And it's one that could easily mean hundreds of thousands of dollars in savings.

Afraid you're not set up for success? The advisors on our partner SmartAsset's platform have been rigorously vetted through our proprietary due diligence process.

What to do instead: Strategies that keep your heirs richer

Here's how to avoid letting capital gains chip away at your legacy:

1. Understand the step-up in basis

Before transferring any assets, talk to a tax advisor about whether those assets would qualify for a step-up in basis at death. In many cases, it's better to hold appreciated investments in your name and let heirs inherit them -- not gift them during life.

If you want to find an advisor but need a place to start, this no-cost quiz from our partner, SmartAsset, makes it easier to find a fiduciary financial advisor.

2. Use gifting strategically

If you do want to give while living, focus on cash or assets that haven't appreciated much. You can also explore using trusts to manage future appreciation in a tax-smart way.

3. Review your estate plan regularly

Tax laws change. Your estate plan should change with them. With the current estate tax exemption set to drop after 2025, now's the time to revisit your strategy.

4. Coordinate with professionals

Work with a financial advisor, estate attorney, and CPA who understand how to navigate capital gains in large estates. Coordination matters -- especially when your portfolio includes a mix of real estate, private equity, and market investments.

The goal is to keep your money

Your generosity should be a gift, not a tax problem. By planning ahead and understanding how capital gains apply to your estate, you can help your family keep more of what you've worked so hard to build.

Don't leave it to chance. A few smart moves now could save your heirs a fortune later.

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Think for a second: How do you win a game of Monopoly?

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Do you circle the board as fast as you can, refusing to buy anything, and only focus on stacking up cash?

Of course not. You buy properties. You invest early and get your hands on as many assets as possible. It's a race to build hotels and collect income. The players that buy nothing and hoard cash? They lose.

Well, the same idea applies to retirement and real life. Saving is crucial. But investing is what builds real wealth.

Why saving alone won't get you there

Let's say you save $500 per month, and put all of that money into a checking account at the bank. Do you know how long it will take to save up $1 million?

It will take 166 years. Not kidding.

Simply stashing money in a bank account makes it incredibly difficult to reach your retirement goals. But when you invest your money and activate compound interest, your wealth grows like a snowball.

Now let's look at what investing can do with $500 per month. Instead of saving in a checking account, let's say you invest all those dollars in a 401(k) or IRA. With an 8% average annual return (I'll explain why I chose this rate later), reaching that $1 million would only take 35 years.

That's a difference of 131 years!

You can even reach $1 million much sooner, by either saving more or getting a higher return on your investments. The reason I used an 8% annual growth rate is because it's a conservative estimate, slightly below the S&P 500 Index's long-term average of about 10%.

By the way, if you're confused about all this investing stuff, it never hurts to connect with an advisor. A short questionnaire from our partner, SmartAsset, helps match you with up to three fiduciary financial advisors, each legally bound to work in your best interest.

Automate everything

One of the best money moves I ever made was automating my retirement contributions.

Every paycheck, a little bit of money gets transferred into my investment accounts, without me ever having to think about it. And over the years, those small, consistent deposits have quietly grown into big balances.

If your workplace offers a 401(k) plan, start there. And if they offer a match, grab it! That's free money. Another easy option is opening an IRA and scheduling monthly transfers.

Experts recommend saving 10% to 15% of every paycheck. But honestly, I encourage people to save even more if they can.

Keep it simple with index funds

I'm a huge fan of index funds. These are low-cost funds that track big chunks of the market, like the S&P 500 Index.

That means when you invest in one fund, you instantly own shares of hundreds of companies -- without having to pick and choose.

Another easy setup is target-date retirement funds. They're like all-in-one portfolios that invest your money in a mix of stocks and bonds, and automatically adjust that mix as you get older.

And if you want a completely hands-off experience, it might make sense to work with an advisor. This no-cost quiz from our partner, SmartAsset, makes it easier to find a fiduciary financial advisor.

Go build your Monopoly board

Saving for retirement is a long-term game.

Just like collecting properties in Monopoly, the key is to keep stacking assets over time. Those investments will start paying dividends, growing in value, and snowballing into real wealth.

To make it easier, set your contributions on autopilot. This makes investing a habit, so all of your dollars are working hard while you continue living your life.

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We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

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How much money do you really need to retire comfortably? For the average American, the answer is $1.26 million, according to the 2025 Northwestern Mutual Planning & Progress Study. That number might feel ambitious -- and for many, it is.

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The study found that 1 in 4 Americans with retirement savings have just one year's worth of their current income saved -- or less. Even more concerning, 51% of U.S. adults say it's likely they'll outlive their savings.

So why is there such a massive gap between what Americans think they need and what they actually have?

1. People start saving too late

On average, Americans don't begin saving for retirement until age 31. That leaves just 30-some years to build a seven-figure nest egg. While Gen Z is starting earlier (around 24), older generations got a much later start, and it shows in their savings.

If you're getting a late start, don't panic. There are still ways to build real momentum. Consider ramping up your 401(k) and IRA contributions, taking advantage of employer matches, or using catch-up contributions if you're over 50.

Want a clear snapshot of where you stand? Use this no-cost quiz from our partner SmartAsset to get matched with up to three fiduciary advisors so you can get professional advice.

2. Rising costs are outpacing savings

Inflation has pushed everyday expenses higher. Healthcare, housing, and long-term care costs are all rising faster than many Americans can keep up with.

That's why today's retirees need more money saved up than previous generations. A $1 million retirement fund doesn't go as far as it did a decade ago, especially if you're planning for a 30-year retirement.

3. Too much focus on growth, not enough on protection

According to the study, 61% of Gen Z and 60% of millennials say they focus heavily on growing their assets but neglect protecting them. That means things like life insurance, long-term care planning, and even budgeting often fall by the wayside.

But building wealth is only half the equation. Protecting what you've worked for is just as important. For example, people routinely lose out on interest by keeping their savings in a traditional savings account instead of a high-yield savings account (HYSA). HYSAs pay up to 10 times the national average rate.

If you need help striking the right balance between growth and safety, you can use this free tool from our partner SmartAsset that can match you to a fiduciary advisor.

4. Many Americans still rely on Social Security

Nearly half of Gen X worries Social Security won't be there when they need it -- and yet, many still plan to rely on it as a primary income source in retirement. Social Security is very likely not going to disappear completely, but payouts could drop.

Social Security is meant to supplement your savings, not replace them. Building up personal assets through 401(k)s, IRAs, and other investments is key to having control and security in retirement.

Don't delay any longer

Americans might know what they need to retire comfortably -- but knowing isn't the same as doing. If you feel like you're falling behind, now is the time to act.

With the right tools, advice, and a little urgency, it's possible to close the gap.

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We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.