As we prepare to celebrate Independence Day here in the US, we often think about the freedoms that we enjoy. The US Constitution guarantees us a range of liberties that are unique in the world, and have shaped American culture.
However, not all of our freedoms are spelled out, and one of the less appreciated rights that we have is the ability to direct the transfer of our wealth and assets to future generations. By using wills, trusts and other supporting documents, we can exercise our right to distribute our property as we wish. But it doesn’t stop there as we can also specify guardians and parenting choices for minor children, as well as nominate powers of attorney for health care and financial decisions.
We are able to choose exactly how we leave our legacy, to whom and in what amount; without government oversight. The way that we exercise that right is through using estate planning tools and strategies. If you think about it, this choice is very empowering as we are free to secure our family’s future in the way that best suits them.
In the US, we have a right to choose our estate plan.
The only federal law related to estate planning is estate and gift taxation. Each state has its own inheritance rules, but there are few legal constraints on how we can distribute our estate.
Not all countries permit that type of freedom! Some countries have mandatory laws directing specific inheritances to spouses and children. That may be a result of times in history when women did not have any inheritance rights, or all property only went to the oldest son. But in the US, you can leave your estate to anyone that you choose (even your pet in California), although your family will usually be the natural beneficiaries.
But, you have to act to exercise your right!
What’s unique about estate planning and asset inheritance is that we actually have to take some action. In contrast, rights such as freedom of speech are automatic for all US citizens (no registration required!). But if you don’t make a detailed, written estate plan, then asset distribution is controlled by state statute, regardless of your preferences.
So, if your priority this July is for your family to be secure and free, it’s time to get your estate plan done. At Shoup Legal, we specialize in estate planning and ensuring individuals and families are protected. To get started, give us a call at (951) 445-4114. We’re here to help you plan today for peace of mind tomorrow.
