Roadmap to Generational Wealth: Estate Planning
What you need to know about Estate Planning
Estate planning helps you decide what happens to your property, accounts, and other assets. It can also help people handle financial or health decisions if you are unable to make them yourself. Estate planning laws vary by state, so documents must meet the rules where you live.
Protecting what families already own matters when large wealth gaps remain. In 2022, the median Black family held about $44,890 in wealth, compared with $285,010 for the median White family. Estate planning cannot close that gap by itself, but it can help prevent family assets from being lost or transferred in ways the owner did not intend.
The NAACP supports estate planning and stronger protections for heirs' property. Its policies encourage families to use estate plans to protect property and support laws that reduce forced sales of family land.
How to protect and pass on what you've built
- DO make a list of your property, accounts, debts, insurance, retirement plans, and important documents so you know what your estate includes.
- DO create a valid will that reflects your wishes and addresses guardianship for minor children when needed.
- DO review the beneficiaries on retirement plans and other accounts because those designations can determine who receives the money after your death.
- DO check how family real estate is titled, especially property that has passed through several generations or may have unresolved ownership.
- DO review your plan after major life changes and make sure a trusted person knows where your important documents are stored.
Don'ts:
- DON'T assume your will controls every asset. Retirement accounts, life insurance, and payable on death accounts may pass through beneficiary designations instead.
- DON'T add someone to a deed or account just to avoid probate without first understanding the legal and tax consequences.
- DON'T rely only on verbal promises or documents that may not meet your state's legal requirements.