As the school year winds down and families begin planning for summer vacations, camps, and college prep, it may also be the perfect moment to think long-term—not just about your own retirement, but about the legacy you’re preparing for your children.

For many parents, summer brings a rare window of flexibility. Without the back-to-school rush, you have space to focus not only on budgeting for seasonal expenses, but on setting up your family for long-term financial stability. That includes reassessing your estate plans—especially if you’re planning to leave behind retirement savings.

Because if you’re assuming that passing down your IRA is the best gift you can give your kids, it may be time for a financial reality check.

Your IRA Could Be a Tax Trap

Since the passage of the SECURE Act in 2019, inherited IRAs have changed—dramatically. The “stretch IRA,” which once allowed beneficiaries to take distributions over the course of their lifetimes, has been eliminated for most non-spouse heirs. Now, your children will likely have just 10 years to withdraw all the money from an inherited IRA, and those withdrawals are taxed as ordinary income.

That means if your adult child is in their peak earning years, the inheritance could push them into a higher tax bracket—potentially losing 30% or more of your hard-earned savings to the IRS. What you meant as a financial cushion could end up creating a tax headache.

Why Summer Is the Ideal Time to Reassess

With school out and schedules slightly more relaxed, many families use summer to tackle larger planning goals. If you’re helping a teen prepare for college, you’re probably already making decisions about student loans, financial aid, and dorm essentials. But the financial prep shouldn’t stop there.

This is a perfect time to:

• Revisit your retirement and estate plan. Make sure your beneficiary designations are up to date and reflect your intentions.
  
• Consider a Roth conversion. By paying taxes on your traditional IRA now, you can pass down tax-free funds to your kids later, eliminating the burden of a compressed withdrawal window.
  
• Explore trust-based estate planning. Certain types of trusts can help distribute assets in more tax-efficient ways, protecting both the size and timing of distributions.
  
• Start the conversation. Teaching your kids about financial responsibility and inheritance planning isn’t just smart—it’s part of preparing them for the wealth transfer ahead.
  

Budgeting for Summer and Beyond

While you’re thinking about legacy planning, it’s also a good time to look at your current budget. Summer brings a different rhythm to family spending: travel, childcare gaps, home upgrades, and college-related purchases all add up fast. Creating a summer-specific budget can help manage short-term costs without derailing long-term goals.

Consider setting a monthly cap for variable expenses like entertainment and dining out, especially if you’re funding larger items like a vacation or a tuition deposit. Use this time to review your automatic contributions to retirement, 529 college savings plans, and emergency funds. Even small increases now can have a big impact over time.

Helping Your Kids Build a Strong Financial Foundation

Whether your child is heading off to college this fall or still in grade school, summer can also be a valuable opportunity to build financial literacy at home.

From budgeting for back-to-school supplies to opening a Roth IRA for a teen with a summer job, there are plenty of ways to involve your children in the family’s financial ecosystem. And by modeling smart estate planning and long-term thinking, you’re showing them that financial health is not just about making money—it’s about managing it wisely.

Where to Get Help

Navigating complex estate and tax planning options can be overwhelming. That’s where platforms like RetireUS are stepping in to fill the gap. By connecting families with independent fiduciary professionals, RetireUS offers trusted guidance around legacy planning, Roth conversions, and tax-efficient retirement strategies. Fiduciaries are legally required to act in your best interest—meaning you’re getting advice that’s designed to serve your goals, not someone else’s commission structure.

They’ve also launched Government Transition Decision HQ, a free tool to help federal employees make informed financial decisions during workforce transitions and layoffs. But their services are increasingly being used by families nationwide looking to avoid costly mistakes as they transfer wealth to the next generation.

The Bottom Line

Summer isn’t just for barbecues and beach trips—it’s an opportunity to take stock of where your family’s financial future is headed.

If you’ve spent decades building retirement savings, now is the time to make sure it’s passed on in a way that actually helps your children—not the IRS. By being proactive, educating your family, and working with the right professionals, you can turn a potentially risky inheritance into a true gift.

And there’s no better time to start than now.