Inheriting assets can be a significant event, and deciding what happens to these assets after you pass on is an important aspect of estate planning. Many individuals wonder if they can leave their share of an inherited estate to their spouse through a will. This blog explores the legalities and considerations involved in making such a decision, particularly under the laws in Georgia.
Key Takeaways:
- Yes, you can generally leave your inherited assets to your spouse in your will.
- Understanding the distinction between separate and marital property is crucial in estate planning.
- Proper documentation and clear will drafting are key to ensuring your wishes are honored.
Understanding Your Inherited Assets: When you inherit assets, whether they are from a parent, another relative, or a friend, these typically become your separate property. Separate property in estate planning refers to assets that were yours before marriage or those you acquired by gift or inheritance during the marriage. This is distinct from marital property, which is subject to division upon divorce and can be more complicated to handle in estate plans.
Legal Ability to Bequeath Inherited Assets: In Georgia, as in most states, you have the right to bequeath your separate property, including inherited assets, to anyone you choose. This means you can indeed leave your inherited assets to your spouse through your will. Doing so can help ensure that your spouse is taken care of after your passing, but it also requires careful planning to avoid potential legal complications.
Drafting Your Will:
- Specify Your Wishes Clearly: To leave your inherited assets to your spouse, you must clearly specify this in your will. It’s important to explicitly state which assets you are referring to, ensuring there is no ambiguity in your intentions.
- Update Regularly: Life changes such as additional inheritances, changes in your marital status, or even relocating to another state can affect how your will should be structured. Regular updates can help keep your estate plan in line with your current circumstances and wishes.
- Consider Creating a Trust: If you have significant inherited assets, consider setting up a trust to manage these assets. A trust can offer more control over how your assets are used after your death and can provide tax benefits and protection against creditors.
Tax Implications and Estate Planning Considerations:
- Estate Tax: Depending on the value of your entire estate, including inherited assets, there might be implications for estate taxes. Be sure to consider how leaving your inherited assets to your spouse might impact the overall tax situation of your estate.
- Step-Up in Basis: Inherited assets typically receive a step-up in basis, which can reduce capital gains taxes if your spouse decides to sell the assets later. This is an important consideration when deciding how to bequeath property.
Legal Advice: Given the complexities involved in estate planning, particularly when it involves inherited assets, consulting with an estate planning attorney is advisable. An attorney can help ensure that your will is legally sound and that all aspects of your estate plan work together harmoniously.
Leaving your share of an inherited estate to your spouse through a will is not only possible but also a thoughtful way to ensure your spouse’s financial security after your death. By taking the proper legal steps to include these wishes in your estate planning, you can protect your assets and provide for your loved ones according to your desires.
Get Help Today with Hurban Law, LLC in Lawrenceville, GA
If you’re considering including inherited assets in your estate plan, or if you need to update an existing plan, contact an experienced estate planning attorney today. Their guidance can help you navigate the complexities of estate laws and ensure that your assets are distributed according to your wishes.
