Make a Trust the Beneficiary of a Trust

Can a one trust be the beneficiary of another trust in Louisiana? Yes it can.

Let's say that you want to leave an inheritance for your child. When your child dies, you want the remaining assets to go to your child's children. Let's also say that your grandchildren are too young to receive an inheritance anytime soon. What do you do?

Name your child as the income beneficiary of a trust and allow principal distributions to him or her for their support, maintenance, education, or medical expenses. Then, instead of naming your grandchildren as principal beneficiaries, name a trust for your grandchildren as the principal beneficiary of the trust. Sound confusing? It might, but you can do some powerful things for your children and grandchildren by using multiple trusts. It can be simple. And it's not just for the wealthy.

Paul Rabalais

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[Attorney Lederman]

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