Personal Finance

I’m wealthy but have no family - Is it weird to leave my fortune to my friends?

Christy Bieber

Published: January 28, 2025 9:30 am

What should you do with your money if you are financially successful and you don’t have close family to leave your money to? A Reddit user posted about this question recently.

The original poster (OP) explained that he is very well off but has no wife or children. He does have one sibling who is financially stable, but he also has several very close friends and he’d like to make sure those friends who love him most are included in his will if something happens to him. 

Since most people seem to leave money to family members, he’s wondering if it’s a good idea to provide for his friends in a material way should he pass on. So, is it a solid plan?

Your wealth is yours alone to distribute

While the Reddit user may feel weird about giving money to his friends in his will, there’s really no reason not to give the money to people who matter to him. In fact, if he wants to leave his entire fortune to one or two friends and not even provide money for his sibling, it is 100% within his rights to do that.

While most states do have rules that prevent you from disinheriting your spouse (unless your husband or wife agrees to give up their spousal elective share), there are no real requirements beyond that. You can choose to leave your money and property to family, friends, strangers, charitable organizations, or any other person or entity that you want to bestow your fortune upon. 

In fact, you not only can leave your money to whomever you want but you should make it a point to do that. When you work hard and are successful, you have a 100% right to make your legacy whatever you want it to be. 

You don’t even have to tell your friends about your plan if you are concerned they may feel weird about it. You can simply leave your instructions in your estate plan, keep quiet about what you have done, and your friends will only find out if you happen to die and they actually inherit. 

Be smart about how you structure your estate plan

While you can leave your money and property to anyone you want, you should make sure you work with an estate planning attorney or other financial professional to ensure your assets transfer in the best and most efficient way possible. 

For example, in a small number of states, inheritance taxes are charged on heirs who receive money after a death. Unlike estate taxes, which are paid out of the estate, those who inherit pay inheritance taxes and the rate they pay is often based on their relationship to the deceased. If you are leaving your money to your friends in a state where these taxes are in effect, they may have to pay a higher inheritance tax since they aren’t close relatives. If this is the case, explore your options with an estate planning attorney to see if you can minimize this financial burden. 

If your estate is very large, then federal estate taxes may also become an issue — and, depending on where you live, your estate may charge an estate tax as well. If you don’t want the government getting a big cut, exploring ways to reduce these costs is also smart. 

There may be other issues too. For example, you may prefer that your friends avoid having to go through the probate process, which can take time and which also results in the transfer of assets becoming public record. You could consider creating a living trust so your assets can transfer more quickly and more privately through the trust administration process.

Lastly, if you think you may get married or have kids in the future, you should be prepared to update your estate plan at that time. Outside of these considerations, though, giving money to your friends can be a clear and obvious choice if that’s what makes you the happiest.