Louisiana Estate Planning and Successions

Successions in Louisiana - Next Steps

After our initial meeting, we can usually decide if an administration is necessary or if we can proceed without an administration. We can also typically quote a flat fee for completing the succession. 

With either type of succession, the next step is to develop a list of the deceased person assets and debts and their values.  The list is called the "Detailed Descriptive List" and the executor/administrator works along with the attorney to develop it.  

The list can be easy to assemble in the case of a well-organized person with few debts.  Or, it can take several weeks to compile.

Factors that make the list difficult and/or time-consuming to compile are:

• The deceased person kept poor records or the records can't be found
• The records are in the hands of a family member or other person who refuses to release them
• The records are in a safety deposit box and no one has access to the box
• Medical and other substantial bills remain unpaid. For example, it can take several months for hospital bills to be submitted to an insurance company and then obtain a final bill that is to be paid by the estate
• Values for real estate, business interests, antiques or jewelry require appraisals

Successions In Louisiana - First Steps

Schedule a meeting with our office. It is helpful if you can bring the following documents to the meeting:

• Property descriptions and appraisals for real estate. (In some cases, a broker letter will suffice). We can also obtain property descriptions of property from the courthouse.

• Copies of statements for bank, brokerage other accounts held by the decedent for the last 12 months, including the date of death.

• A list of all retirement accounts, life insurance policies, annuities and other such assets.

• A list of all valuable household furnishings or collections and a copy of the decedent’s homeowner’s policy. 

• Titles or registrations for all licensed vehicles such as cars, trucks, boats, trailers, recreational vehicles, etc.

• Copy of the funeral home statement and related funeral bills.

• Copies of bills related to medical expenses that have not been paid by insurance.

• Copies of credit card and loan statements showing the balance due as of the date of death.

Successions In Louisiana - Administration

As we said last time, often successions are done without an administration. This means that no executor or administrator is appointed.  The documents for the succession are compiled and filed with the court as one package, and the heirs are put into possession when the final judgment is signed by the judge.

However, in some cases, an administration will required. For example if:

There are debts to be paid

An estate tax return must be filed

There is a business to be managed

There is conflict involved in the succession 

An executor or administrator is appointed when there is an administration. 

When all issues in the succession are resolved and all debts and taxes have been paid, and the assets are distributed to the heirs, the administration is finished and the executor/administrator is discharged.

Successions In Louisiana III - Overview of Succession Procedure

Tidbit

An executor is the person who manages the administration in a testate succession.

An administrator does basically the same thing in an intestate succession.

Successions In Louisiana III - Overview of Succession Procedure

In many states, the process of transferring assets is referred to as “probate.”  In Louisiana, we call this process the “succession” or an “administration.”  In our discussion, we’ll refer to the process as an administration. There are two basic types of successions:

• No administration
• With administration

If there is an administration, it may be an Independent Administration. More on that later.

No Administration

Often successions are done without an administration. This means that no executor or administrator is appointed.  The documents for the succession are compiled and filed with the court as one package, and the heirs are put into possession when the final judgment is signed by the judge.

Successions In Louisiana II - Testate and Intestate

In Louisiana, if a person dies without a will, all of the assets are passed to his or her children, in equal shares.  The surviving spouse, if there is one, has a usufruct over all of the community property assets until his or her death or until remarriage.  In general “usufruct” means use of.  The children have a naked ownership interest in the community assets.  The gist of the “naked ownership” is that it is an underlying interest subject to the usufruct.  A decedent’s assets consist of a one-half interest in all community property and a full interest in all separate property.  If a person dies with a will, the assets are transferred according to the directions in the will.  However, some assets don’t pass via a will.  For example, accounts with a beneficiary designation, such as a retirement account, are transferred to the person named on the beneficiary designation form.

Successions In Louisiana: A Series

Part One: What is a Succession?

Generally speaking, a succession is the process of collecting information about the deceased person's assets and debts and by which assets are transferred from the deceased person to his or her heirs.  If the deceased person had a will, the assets are transferred according to the directions in the will.  This is called a “testate succession.”  If there is no will, the assets are transferred according to state law, an "intestate succession."

This process is called probate in other states.

Top 10 Estate Planning Tips Special Needs Clients

 
The Special Needs Alliance Newsletter, The Voice, shares a top 10 list for estate planning for families with special needs members. Read here for their excellent review of top tips.

Consider subscribing to their newsletter. It's a great resource!

Building an Estate Plan after a Second Marriage

Getting remarried is a happy occasion, but it also makes estate planning more complex.  Elder Law Prof Blog guest blogger, Hannah Watson, suggests some considerations for your new estate plan, summarized here:

• Discuss your plan with your family.  Don't allow children from a previous marriage to be surprised by changes in your plan.
• Talk to your new spouse.  Discuss the important issues that will need to be ironed out with your new partner so that he or she can live comfortably should something happen to you.
• Establish goals with your new spouse. You may want to give assets to charity instead of adult children.
• Consider a trust. While not appropriate for some families, a trust may be a fair way to split assets in blended families.
• Speak to an estate planning attorney.  Planning for your assets when blended families is complicated.

Read Hannah's article here.

Who Can Serve as Executor

If you take the time to draft a will you can choose your own executor.  An executor, or personal representative, is the person chosen to supervise the administration of your estate after your death.  First, you must decide if you want an individual or an institution to act as your executor. An institution can be a bank, a trust company, etc. Most people select an individual.  Next, you should verify that your choice of executor will be allowed to serve.  Some states have qualifications that an individual must meet in order to serve in this capacity.  For example, in Louisiana an individual executor must be:

• Over 18 years of age
• Not mentally incompetent
• Not a convicted felon
• A resident of Louisiana unless that person has appointed a resident agent
• Not unfit due to bad moral character

If you die without making a will or the executor you named cannot fulfill that duty, the court will choose an executor.  State law regulates who has priority to serve. First priority is usually given to the surviving spouse and children are next in line.  In the absence of spouse or children, other members of the family may be selected, but the court will decide if heirs cannot agree.

For tips on choosing an executor, click here.

What does the executor do? Click here.

Source for portions of this post: Elder Law Answers