NEW YORK (AP) — While death and taxes may be unavoidable parts of life, leaving your loved ones with a large financial burden doesn’t have to be.

Affluent individuals have long used strategies to preserve wealth and pass it on to the next generation with minimal interference from taxes. However, the same tools and techniques can also benefit those with more modest savings who want to optimize what they leave behind.

“It’s a carefully planned game, often played over many years,” explains Mark Bosler, an estate planning attorney in Troy, Michigan, and advisor to real estate professionals. “Most people rely on a basic will, but those with wealth often take a more advanced approach.”

Think About Setting Up a Trust

Before diving into planning, it’s important to understand that most estates in the U.S. aren’t taxed. Federal estate tax generally applies only to estates worth more than $15 million. However, 16 states plus Washington, D.C., do levy estate or inheritance taxes, often with lower thresholds than federal guidelines, though still aimed at high wealth individuals.

Even if taxes won’t be a concern, failing to prepare properly can leave your heirs dealing with legal delays and costly paperwork. Without planning, estates often get tied up in probate court, which can drag on and drain finances through fees and legal costs.

This is why many estate specialists recommend creating a trust.

Although trusts are often associated with the ultra-wealthy, they are practical tools for a wide range of people. While legal fees to establish them can run into the thousands, a couple with a home, retirement accounts, and some investments may find a trust makes it easier and faster to hand over assets to their heirs.

Probate court can be costly and public. A trust can bypass that step entirely while keeping financial details private. Additionally, some people use them to protect resources from being used for long-term care, allowing them to qualify for Medicaid instead of paying out-of-pocket.

Transfer Stocks with Minimal Tax

If you’ve invested in booming stocks like Nvidia over the years, there’s a way for your heirs to inherit the value without taking a big tax hit.

This concept is called a “step-up in basis.” While it may sound technical, it’s a common method wealthy families use to grow and pass down wealth tax-efficiently.

Here’s how it works: Suppose a relative bought 100 shares of Nvidia back in 1999 at $12 each. Fast forward to now, those shares could be worth over $9 million. If those shares are left to someone in an estate, the new value is calculated based on the date of death, not the original purchase date. That means little or no capital gains taxes would be owed when those shares are sold.

Benjamin Trujillo, a wealth manager at Moneta in St. Louis, calls it “almost like magic” – and completely permitted under current tax law.

“Transferring wealth this way is surprisingly effective,” says Trujillo. “Investments can grow quietly, and then be passed on tax-efficiently.”

While laws around this tactic have been debated, the rule remains in place, making it a powerful method for passing down assets such as stocks, art, properties, or valuable collectibles.

Regularly Update Your Beneficiaries

If you’ve ever been asked to name a beneficiary on a bank or investment account, it might seem routine – or even confusing – but it serves an important purpose.

Many financial institutions allow you to list specific people who will receive your funds when you pass away. And in many cases, this process is much simpler and quicker than going through court systems.

“It’s one of the least complicated methods to transfer assets,” says Allison Harrison, an estate attorney in Columbus, Ohio.

Something noteworthy: beneficiary designations typically take precedence over instructions in a will. That means if you haven’t updated your designations after a major life change, an unintended person – like a former spouse – could inherit your assets.

Creating a thoughtful plan and reviewing details regularly can make all the difference. Experts agree that taking time now to set things up correctly is what distinguishes wealthier families from those who risk losing value to disorganization or legal fees.

“Families with means tend to plan ahead,” says Fry. “They make sure their decisions and legacies are safeguarded.”