Since the beginning of recorded time, the transmission of wealth from generation to generation has been a privilege protected and enforceable by law. It has also become a source of revenue, perhaps one of the oldest forms of taxation we have today. And like other forms of taxation, it’s not just a way for the government to raise revenue. It serves also, rightly or wrongly, as a means to redistribute wealth, encourage or discourage certain economic behavior, and satisfy the needs of certain special interest groups.
The primary objective of estate planning is to ensure that your “wealth” or “stuff” reaches the persons and organizations you intend for it to reach, at the time and in the form you desire. The secondary objective is to plan the transfer so that it is subject to minimum taxes and other expenses.
Judge Learned Hand, one of our countries most famous judges and judicial philosophers, reminds us that, “Anyone may arrange his affairs that his taxes shall be as low as possible; He is not bound to choose that pattern which best pays the treasury…. for nobody owes any public duty to pay more than the law demands; Taxes are an enforceable exaction, and not a voluntary contribution.” (Google Judge Learned Hand quotes to read the full quotation)
A majority of Americans do not have a will. They spend a lifetime of working, accumulating an estate, caring for family and loved ones, only to leave the distribution of their property up to the state law, which rarely is in accordance with their wishes.
With a Will you can:
* Determine to whom, how, and when your assets will be distributed;
* Name an executor who will manage the estate in accordance with your wishes;
* Create trusts for your spouse, children, or others, providing income for beneficiaries and saving taxes;
* Reduce and sometimes eliminate estate taxes; and
* Make gifts to charity. A charitable organization can never inherit from the estate of someone who dies without a will.
Carpe’ Diem
Or in this case, don’t procrastinate. Though nobody likes to consider the realities of death, there is great peace and satisfaction to be gained by insuring the good will flow from our resources to our loved ones that depend on us and the organizations we choose to support.
*(Ruth met Ron at Trinity Theological Seminary. Author Bio: Ronald Tollerud. Ron serves as the Director of Planned Giving and Special Gifts at Trinity International University (TIU). He assists alumni and donors in establishing major gifts (bequests, charitable trusts, real estate, retirement funds, etc.), made in lifetime or at death, as part of their overall financial and/or estate planning. He has nearly four decades experience, having served with The Salvation Army, Arthritis Foundation, and TIU. He can be contacted at trinitygiving.org.)
