Many Louisiana residents add one or more children to their checking and/or savings accounts for various reasons. The three most common reasons this is done is to Provide easy access to the account if the parent becomes incapacitated, To allow this account to transfer to the child at the parent’s death thereby avoiding probate, and To protect the account from Medicaid spend-down if you need long-term care. Adding a child’s name to an account will only facilitate the child’s access to the account while you are alive. If 100% of the funds in the account are from the parent, the
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Creating a plan to protect assets from Medicaid spend-down will often involve gifting assets. Although outright gifts have the advantage of simplicity and minimal costs, using an irrevocable trust to hold the gifted assets can provide more control, protection and tax benefits. In addition because the Deficit Reduction Act of 2005 (DRA) made the look-back period for transfers to trusts and out right transfers five years, direct gifts no longer have the advantage of a three year look-back period. Benefits of Gifting Assets to an Irrevocable Trust: Preservation of the Capital Gain Exclusion for a Personal Residence If the Settlor’s
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We often receive calls and emails with questions about what to do after a loved one dies. Because every family situation is different, some of the recommendations can vary greatly. The following is a brief overview of steps, in most cases, that should be taken after a family member dies. If you are unsure about whether certain steps should be taken, contact an attorney. In fact most of the steps listed under “Things to do After the Funeral” should not be taken without first meeting with an attorney. Things to do as Soon as Possible Notify the agent/attorney-in-fact pursuant to
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There are several types of succession procedures available in Louisiana. The correct procedure is contingent upon the nature and value of the deceased person’s assets and debts. It also depends on whether the estate must be administered and whether the decedent died testate (with a will) or intestate (without a will). The types of successions available in Louisiana are the succession affidavit, judicially opened small successions, simple possession successions and administered successions. I will explain the succession procedures available in Louisiana in a series of blog posts beginning with the succession affidavit in this post. The most streamlined procedure is
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An estate plan is not complete without planning for the possibility of becoming incapacitated. Consider the problems created for your loved ones if you are incapacitated and you are unable to make decisions to manage your affairs. Without proper planning, if you become incapacitated and are unable to manage your affairs, a judge will have to name a curator in an interdiction proceeding. An interdiction proceeding is not private and can be more expensive than other alternatives. Furthermore, the incapacitated individual does not control who will become the curator during the interdiction. Of significant importance to many individuals is to
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If you already have a general power of attorney, you have begun to address how your affairs will be managed in the event you are incapacitated. Unfortunately many powers of attorney we review are gravely inadequate to handle the vast array of planning needs that may arise. Every week we review powers of attorney that do not specifically address the myriad of situations that may arise. If you want to provide your attorney-in-fact (agent) with the greatest amount of flexibility to manage your affairs, a standard boilerplate power of attorney may be insufficient. To provide maximum authority to your attorney-in-fact
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We frequently receive questions regarding how to avoid probate in Louisiana. Many Louisiana residents wish to avoid causing their spouse or their children from having to open a succession (i.e. go through probate) after their death. There are many reasons why people wish to avoid probate. I will highlight a few of those reasons in this blog post. Avoiding the expense and delay of probate. Probate is a court-supervised process to retitle assets from the name of the deceased person to their heirs. Because it is court supervised, there are specific rules and procedures that must be followed. As a
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