Inheriting a Reverse Mortgage in Louisiana: For homeowners who are 62 years of age or older, a reverse mortgage harnesses their home equity to provide cash. With a reverse mortgage, also known as a Home Equity Conversion Mortgage (HECM), homeowners can borrow money against the value of their house and get it back as a line of credit, a lump sum, or a fixed monthly payment. When an heir inherits a home with a reverse mortgage, they inherit not just the property but also the responsibility to pay this loan. If a home still has a traditional mortgage, the heirs
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 Advance Directives Explained: An advance directive or “living will” is a legally binding document that gives instructions for health care at the end of life. It comes into play when you are no longer able to make or communicate those decisions yourself. It is used when your condition is terminal and irreversible. It is a good idea to speak with immediate family when preparing an advance directive to let them know the decisions that you have made. In Louisiana, an advance directive is only used to indicate a desire to withhold certain life-supporting medical treatments. There are various types
Louisiana Small Succession Affidavits Explained: Usually, the transfer of estate property involves the probate process, which can be a time-consuming and costly endeavor. A small succession affidavit stands as a viable alternative, allowing heirs to avoid the probate process entirely. A small succession affidavit is a legal document that efficiently transfers estate assets to the rightful heirs outside of the judicial process. While it is certainly a favorable alternative, it is only available in very narrow circumstances. Which Estates Qualify for Small Successions? Per La. Code of Civ. Proc. art 3421, an estate can qualify as a small succession if
Succession Executors and Administrators Explained: Administration of an estate is sometimes required when there are issues that need attention before the heirs or legatees can be put in possession of estate assets. Some of the issues that may necessitate an administration include providing for debts or claims, liquidating investments, selling real estate, or providing an allowance for a surviving spouse. If there is no need an administration, then the heirs or legatees can be put into possession of the estate assets without administration, which saves time and costs. When an administration is necessary, the estate will need a succession representative
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
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