Freedom of Disposition

Freedom of Disposition is a principle of trusts and estates law that says the law should grant freedom to people to dispose of their property in any way they want. Two schools of thought surround this theory. The less popular view is that the freedom of disposition is a natural right and should not be constrained by the law in any way. The more common view is that freedom of disposition is a political right and is subject to some constraint.

There are several justifications for the existence of freedom of disposition. First, the ability to pass on wealth to friends and family members creates incentive for individuals to be productive during their lifetime. Second, the freedom of disposition encourages accumulation of wealth rather than consumption so that they have assets to pass on at their death.   Finally, freedom of disposition provides a means of repaying past social services performed by others during the giver’s lifetime.

 

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