Louisiana Simple Successions Explained: A succession is the process of transferring property from a deceased person to their heirs (intestate) or legatees (testate). Other states refer to this as “probate” and in Louisiana the terms are often used interchangeably. Successions can be simple, or they can be very complex, depending on the circumstances of the estate and the level of cooperation among the heirs or legatees. There are two types of judicial successions: successions under administration and simple successions. Simple successions are also commonly referred to as “simple possession” or “putting in possession.” The selection of which type of succession
Author: Maro Petkovich, Jr.
Mr. Petkovich serves as the firm’s managing partner. His practice centers on representing regional and national lending institutions. He also handles estate planning, successions, and personal injury matters on a routine basis.
Louisiana Irrevocable Trusts Explained: Irrevocable trusts are living trusts that are created during the grantor’s (or settlor’s) lifetime and which cannot be changed or revoked like a revocable trust. They are essentially contracts with yourself. A trustee is appointed to manage the assets on behalf of the beneficiaries. While grantors often appoint themselves as the initial trustee in revocable trusts, they lose many of the benefits of an irrevocable trust if the trust is “self-settled”. Thus, a third-party trustee should be appointed. The purpose of an irrevocable trust is to move the assets from the grantor’s control to that of
Louisiana Revocable Trusts Explained: A revocable trust is a type of living trust that you can create during your lifetime and as such is an important estate planning tool. It is essentially a contract reflecting an agreement regarding the passing of property from one to another. The grantor (or settlor) maintains ownership and full control over the assets in the revocable trust while he or she is still alive. Per La. R.S. 9:2022, “reservation of the right to revoke includes the right to modify the trust.” Per La. R.S. 9:2042, “a reservation by the settlor of the right to revoke
Louisiana Testamentary Trusts Explained: A trust is a legally binding document created by a grantor (also known as a settlor or trustor) that holds assets for beneficiaries. A trustee is appointed and is responsible for managing the trust assets and proceeds in accordance with the terms set by the grantor. A “testamentary” trust allows the grantor to transfer ownership of their property to the trust upon their death. Per La. R.S. 9:1733, “[a] trust is testamentary when it is created by donation mortis causa.” This is in contrast to a living trust which becomes effective immediately. Testamentary trusts are created
Louisiana Living Trusts Explained: A trust is a legally binding instrument between a person creating the trust (the grantor) and the person or entity managing the trust and its assets (the trustee). A grantor may also be referred to as a settlor or trustor. Like a will, a trust has beneficiaries, who under the terms of the trust, will receive certain assets from the trust. A “living” trust (also called an “inter vivos” trust) allows the grantor to transfer ownership of their property to the trust during their lifetime. This is in contrast to a testamentary trust which does not
What is Domicile and How Does it Affect Estate Planning? Moving from one state to another is a significant life event. It should include careful planning and attention to tax details. Louisiana does not have a state inheritance or estate tax. This differs from many other states that do impose a state level estate tax, which in many instances is in addition to the federal estate tax. If you have moved to Louisiana from another state, you may be able to eliminate the state death or estate tax from your prior state. To do so, you must establish Louisiana as
Successions With Absent Heirs or Legatees: Successions are either intestate or testate. In an intestate succession, the heirs of the decedent inherit his or her estate. In a testate succession, the decedent leaves his or her property to one or more legatees. It is not uncommon for a client to come to our office to open the succession of a loved one, and during the process of determining who all the heirs or legatees are it becomes apparent that the whereabouts of one or more heirs or legatees are unknown. If attempts at locating them fail, they become known as absent
When to Update a Power of Attorney: A power of attorney (POA) is an important legal tool. It is commonly used for estate planning, medical management, financial management, and real estate transactions. A POA should be reviewed every few years for possible updates. It may become necessary to update a power of attorney when life situations change, a new agent is needed, or when there are changes in the law. You have the right to amend or revoke a power of attorney any time, and doing so is a relatively simple process. Reasons to Update a Power of Attorney: There
Adequate Protection Explained: Adequate protection payments are made to a secured creditor to provide protection for the creditor’s depreciating collateral. In a Chapter 13 bankruptcy, a debtor is granted an automatic stay upon filing of the bankruptcy, meaning creditors cannot pursue usual modes of collection if payments are not made on time. While Chapter 13 filers are required to start making payments to the Trustee upon filing their proposed plan, the Trustee cannot distribute payments to creditors until the plan in confirmed. Since it can take many months for a Chapter 13 plan to be confirmed, secured creditors would then
Why You Should Have a Digital Estate Plan: Estate planning has expanded beyond the traditional scope of wills, trusts, and powers of attorney. In modern times, significant part of our lives exists digitally. Your traditional estate plan likely does not account for what happens to your digital assets after death. A digital estate plan comes into play as a method for organizing your online information. Creating a digital estate plan provides access to information that your family can use to carry out your final wishes. When your loved ones can rely on a written plan that outlines the passwords for