Wills and Trusts in Louisiana
Thinking about the future can be difficult, but ensuring that your estate is protected is essential. If you pass away without a legally valid plan in place, Louisiana’s succession laws will determine how your assets are distributed.
The best time to start planning is now. Working with an experienced estate attorney in Louisiana will ensure that your documents comply with state laws and that your final wishes are honored as you intended.
Wills vs. Trusts
A will is a legal document that outlines how your assets should be distributed upon your passing. In Louisiana, wills can be either notarial, meaning they are executed before a notary and two witnesses, or olographic, meaning they are entirely handwritten, dated, and signed by the testator. Wills allow you to name an executor to manage your estate and appoint guardians for minor children.
A trust is a legal arrangement in which a trustee manages assets on behalf of beneficiaries. Trusts offer advantages over wills, including avoiding probate, providing financial protection for minors, and offering potential tax benefits. Louisiana law recognizes multiple types of trusts, including revocable, irrevocable, and special needs trusts.
How to Create a Will or Trust in Louisiana
Identify Assets
The first step in estate planning is taking an inventory of your assets, including real estate, bank accounts, investments, and personal property. By understanding what you own, you can make informed decisions about how to allocate your estate.
Choose the Distribution
Next, determine how your assets will be distributed. Certain financial accounts, such as life insurance policies and retirement funds, have designated beneficiaries that override your will. Reviewing these designations ensures they align with your overall estate plan.
Choose the Executor of your Louisiana Will or Trust
Choosing an executor or trustee is a crucial step in the estate planning process. In Louisiana, an executor must be at least 18 years old and of sound mind. Many people select a trusted family member, while others prefer to appoint a professional to handle their estate.
Choose a Guardian
Parents should also name a guardian for minor children in their will. If a guardian is not designated, the court will determine who assumes responsibility for their care, which may not align with your preferences.
Sign with Witnesses
To be legally valid, a Louisiana will be either notarial (signed in the presence of two witnesses and a notary) or handwritten (holographic). Ensuring your documents meet legal requirements prevents unnecessary challenges during probate.
Update and Create your Will or Trust as Necessary
Estate planning should be reviewed periodically, especially after significant life events such as marriage, divorce, or the acquisition of new assets. Regular updates ensure that your estate plan continues to reflect your intentions.
In Louisiana, a will remains valid until it is revoked or replaced by a new document. According to the Louisiana Probate and Succession Guide, you can revoke a will by destroying it, revoking it in writing, or drafting a new one. While you can make changes up until death, precise language is essential to ensure your final wishes are honored.
The Different Types of Wills in Louisiana
Simple Will
A simple will covers the basics but still goes through probate after your passing. It outlines how you want your assets distributed, including any provisions for pets, and gives your executor clear instructions. For the best estate planning strategy, consulting a trust attorney is always recommended.
Joint Will
A joint will is a single document created by two people, typically a married couple, outlining how their assets will be distributed after one or both pass away. Legally, it functions as two separate wills, ensuring each person’s wishes are honored.
Living Will
A will is typically associated with asset distribution after death, but this type of legal document serves a different purpose. It outlines your end-of-life medical preferences, ensuring that doctors and nurses follow your wishes if you become incapacitated and unable to communicate. Unlike a traditional will, it does not designate beneficiaries and exists solely to guide medical decisions.
Holographic Will
A holographic will is a handwritten document signed by the testator, whether it’s written on a napkin or plain paper. While most states require witnesses to validate a will, some recognize these informal documents, especially in emergencies.
Under the Louisiana Civil Code, holographic wills are legally accepted, but they must be entirely written, dated, and signed by the testator to be considered valid.
Pour-Over Will
A pour-over will is used in conjunction with a trust to transfer remaining assets into the trust at the time of death. This ensures that all property is distributed according to the trust’s terms and avoids intestacy laws.
The Different Types of Trusts in Louisiana
Irrevocable Trust
An irrevocable trust cannot be modified once established. It is often used to protect assets from creditors, minimize estate taxes, and qualify for Medicaid benefits.
Revocable Trust
This trust allows the grantor to make changes as needed until their passing. It also provides access to funds for living expenses while still ensuring the estate is distributed according to their wishes.
Family Trust
Many establish this type of trust to ensure their loved ones are cared for after they’re gone. It provides peace of mind, knowing that children, siblings, or extended family members will receive the assets you’ve set aside for them.
Charitable Trust
A charitable trust can be a great option if you want to support a cause while still providing for your loved ones. Many choose to leave behind business interests, stocks, or real estate, depending on their financial situation.
How to Avoid Probate in Louisiana
Louisiana’s probate process, known as succession, can be lengthy and costly, but there are ways to minimize or bypass it entirely. One of the most effective methods is creating a revocable living trust, which allows assets to pass directly to beneficiaries without court intervention.
Holding property as joint tenancy with rights of survivorship ensures that assets transfer automatically to the surviving owner without probate. This is a common strategy for real estate and bank accounts.
Using payable-on-death (POD) and transfer-on-death (TOD) designations for financial accounts and securities can help avoid probate by allowing assets to be transferred directly to named beneficiaries.
For real estate, transfer-on-death deeds allow the property to pass to a designated beneficiary upon death without the need for probate proceedings.
Louisiana also offers a small estate affidavit for estates valued at $125,000 or less, allowing heirs to claim assets without a formal succession process.
Work with an Experienced Louisiana Estate Planning Will and Trust Attorney
Planning for your eventual death is not a pleasant task. Along the way, you are bound to wonder how wills and trusts work in Louisiana? How can I make this process easier? It is tedious, but it’s crucial to ensure that your family and legacy are secured. The law does not require an individual to hire a trust attorney or will lawyer. But they can prove invaluable if they catch issues that could result in your estate going to probate. If you feel like you need help, it’s worth your time to consider hiring an experienced estate planning attorney. We can even help you connect with legal help across Louisiana state lines.
Submit a request or call us today at (866)-345-6784 to speak to a local will and trust attorney!
About the Author
Aaron is a professional legal writer with a B.S. in English Education from Southern Illinois University – Carbondale. He has written, published, and edited thousands of legal articles for RequestLegalHelp, which has connected over 5 million people to legal help in the United States.
With over five years of experience writing thousands of legal articles for law firms across the U.S. and Canada, Aaron specializes in covering federal, state, and city-level legal issues ranging from auto accidents to wrongful terminations.
Has reading this article raised questions about a different sector of Louisiana law? Then explore more of the content on our site!
