Estate Planning Law Firm of Louisiana

Busy (But Exciting) Couple Of Weeks

It's been a hectic couple of weeks at our office lately.

• 4/5/08 - Seminar and Book Signing at Barnes and Noble. Lots of people showed up. In fact, Barnes and Noble had loaded up on books for the book signing, and they called today for another big shipment.
• Weekend of 4/5/08 and 4/6/08 - My five kids had a total of 16 ball games during the weekend. This doesn't have much to do with my office work, but I thought I'd add it because it was a record number of games for one weekend.
• 4/9/08 - First ever "Free Living Will Wednesday." We had a steady stream of folks come into the office to get their free Louisiana Living Will Declaration. It was a pleasure providing this free service. Several attendees, however, realized that they needed additional estate planning legal services so we'll be working with those folks in the upcoming days.
• 4/10/08 - Seminar at new Livingston Parish library. Good crowd. Lots of questions. In fact, one of the attendees came by the office the next day to have me help him settle his dad's revocable living trust that had been established many years ago.
• 4/13/08 - It's the birthday for my star paralegal, Stephanie Purdy. On 4/16/08, I'm taking the whole office out to lunch to celebrate.
• 4/14/08 - We enrolled over a dozen new members in our VIP Membership so our best clients (and their families) can get Preferred Client treatment for the rest of their lifetime. Ask us about our VIP Membership.
• 4/19/08 - The big Life After 50 Expo is coming up. I'll be presenting in the Main Exhibit room. I expect a lively audience. I'm giving away my book to the first 75 in attendance. Better get there early.
• 4/23/08 - New Medicaid Planning Seminars at our office (10:00am) and the Baton Rouge Garden Center (6:30pm). Brand new material based on newly issued Medicaid regulations. Seating is limited so make your reservation by calling Laura at 225-329-2450.

I heard a quote today that I liked, "If you want to make a difference, be different." There's not another business in the world that combines our attributes. You'll find our group courteous, exciting, friendly, progressive, hard-working, intelligent, professional , loyal, and committed.

You may the subject of estate planning is rather bland, but we've got some exciting and incredible stuff coming up that will do wonders for families in Louisiana. Stay tuned!

Paul Rabalais

How Does a Succession Work in Louisiana?

There is tons of confusion among ordinary Louisiana folks about how a Louisiana Succession works. People often get confused about the difference between a succession the is "administered" versus a succession that is handled "without administration."

The simplest successions are handled without an adiministration. If all of the heirs are competent, and all heirs agree to accept the succession, and the succession is relatively free of debt, then we will prepare all of the succession pleadings, and all of the heirs will agree on the assets, debts, and distribution of the estate. After all of the legal pleadings have been signed by all of the heirs, and filed at the courthouse, a judge will sign a "Judgment of Possession," which orders third parties to transfer assets into the heirs' names.

In all other successions, there will be an administration. An administration is required when:

• An executor of the will (or administrator if no Will exists) must be confirmed by the court to handle necessary estate matters;
• Someone contests a succession matter;
• Succession assets need to be sold so the proceeds may be divided among the heirs;
• All of the succession funds need to be collected and deposited into a succession bank account prior to their distribution;
• Someone needs access to succession funds to pay succession debts and other administrative expenses; or
• For any other necessary reason.

If you'd like to find out whether a Louisiana succession should be "administered," simply shoot me an e-mail at paul@rabalaislaw.com, or post a comment to this Post, or give my office a call at (225) 329-2450.

Until next time...

Paul Rabalais

Rabalais Law Firm Scraps Voicemail

As of today, you'll get a live voice if you call our office at 225-329-2450. A few months ago we thought we'd implement a voicemail system whereby callers could route themselves to the appropriate person or the appropriate voice mailbox. It was not an improvement.

Now, when you call our office, you will get a live person. It might be our awesome receptionist, Laura, who is always willing to help. It might be Stephanie, who diligently handles most of our client documentation. It might be someone else, or it might even be me!!!

Your business is important enough to me so that whenever you call, day or night, I'd like to see that your questions or concerns are addressed immediately. Let me know what you think. Or even better...give me a call since you know that your call will be answered immediately.

Paul Rabalais

Estate Attorney Speaks To Investment Advisors

I had an opportunity yesterday to speak to a group of 15 investment advisors in the local office of a national investment firm. They appeared receptive to what I had to say. It was interesting to hear some of their questions that they asked me during our discussion. A few of the questions (along with my answers) are as follows:

Question: Paul, is there anything that you can recommend that we can give or show our clients that will answer questions like, "Do I need a Will?" or "What happens if I die without a Will?"

Answer: There a great book out called, Estate Planning in Louisiana: A Layman's Guide To Understanding WIlls, Trusts, Probate, Power of Attorney, Medicaid, Living Wills & Taxes." It's an easy read. I'll make sure you have one in your hand before I leave today.

Question: Paul, our home office discourages us from talking to our clients about Medicaid. Why is that?

Answer: Medicaid Planning is complicated. Advising your client to arrange their affairs in a way to qualify for Medicaid and protect their estate from the cost of long term care may constitute the rendering of legal advice which investment advisors (or any non-attorneys) may not do without violating the law.

Question: How can people effectively plan for Medicaid if they own annuities and IRAs?

Answer: It's possible, but more difficult. Some annuities may be transferred to grantor trusts without incurring taxes or surrender charges, but an IRA must be distributed to the IRA owner before it can be transferred to an individual or a trust.

Question: Is it true that if parents (with no Will) and children die in a common disaster, that the families' assets will go to the State of Louisiana.

Answer: Not likely. If the parents had siblings, the assets will go to those siblings (or other relatives if no siblings exist).

I made a few predictions about the future of estate planning. I predicted that the internet will have a greater impact, particularly because there are so many death-disposition alternatives and that certain investment companies are already permitting beneficiary designation changes online. I also predicted that video recordings will play a greater role in the future.

We then discussed how financial advisors and estate planning attorneys can work together to benefit the client and create long-term relationships between the attorney, the advisor, and the client. It was good stuff.

Until next time...

Paul Rabalais

Don't Let Minors Inherit In Louisiana

It appears that there are lots of google searches regarding minors inheriting in Louisiana. I'm guessing it's because the following reasons:

• Parents with minor children are the types of people that do google searches most often; and
• More than 50% of parents with minor children don't have an estate plan.

If your minor child inherits from you, a proceeding in Louisiana called a "tutorship" will occur at the courthouse. A judge will select a guardian (in Louisiana it's called a "tutor") who will be responsible for the minor's assets. If the tutor needs to spend some of the minor's money for the minor, then the tutor must file formal court pleadings requesting permission. It's complicated.

But it's only complicated until the minor turns 18 - then it gets real simple. When your minor child turns 18, the tutor must turn the assets over to your child on his or her 18th birthday, and then your child will spend every last nickel before his or her 19th birthday. Isn't that nice?

The solution for Louisiana parents with minor children. Get a good will. Provide that upon your death your assets will be placed in trust for your children. Select an appropriate trustee. This way they will be managed properly for your child and your child won't be given the chance to blow through the inheritance at age 18.

Two ways to do this:

1. If you are budget-conscious, go to www.YourLouisianaWill.com and fill out the Louisiana Estate Planning Questionnaire. Submit your information. Pay the unreasonably low fee, and we'll prepare an entire set of legal documents to protect your minor children. Just get them signed and notarized and your minor children will be protected from court proceedings and from themselves; or
2. Give my office a call at (225) 329-2450. Tell Laura you'd like to come in to the office to visit with me to get your affairs in order. I'll look forward to visiting with you and making sure everything is set up just right.

Whatever you do...TAKE ACTION NOW. This is not an area where you can afford to procrastinate. Make sure this "To Do" item gets checked off your to-do list in early 2008.

Paul Rabalais

Incentive Trusts: Make Them Earn It

I was interviewed last week by a journalist for the Baton Rouge Business Report. He's writing an estate planning article. He said his focus was on how parents can transfer not only their assets, but their values, along to their children and other heirs.

We talked about Incentive Trusts. An Incentive Trust is a vehicle whereby parents (or others) can set up their estate planning legal documents so that after the parents die, their assets are placed in trust and then distributed to the children (or others) only if certain conditions are met.

Common incentive trust provisions include that distributions from the trust may be made to beneficiaries if:

• The beneficiary graduates from college;
• The beneficiary maintains a certain grade point average;
• The beneficiary works in the family business;
• The beneficiary maintains a healthy lifestyle; or
• The beneficiary is employed.

There are few limits to incentive trusts. We discussed that two important considerations when preparing an incentive trust include:

1. Selection of the proper trustee or co-trustees is critical; and
2. The trust must be drafted to allow flexibility due to changing life circumstances. For example, if distributions are tied to employment, then a stay-at-home mom would be penalized for raising her children. Or, if distributions are tied to a certain grade point average, a child may choose a less-challenging curriculum.

We also talked about how parents can supplement their estate planning legal documents with communications to trustees and beneficiaries, such as:

1. Conversations with the parties that will be involved; and
2. Recording a video to express your feelings and wishes.

Having a parent record a video for their descendants can be a powerful estate planning tool. So powerful, it's a service we now offer to our best clients. If you want to know more, drop me an e-mail. Thanks.

Paul Rabalais

Avoid Accidental Disinheritance

Accidental disinheritance is a growing problem. It's a problem, in part, because there are too many death-disposition instruments now that dispositions are slipping through the cracks to the wrong people.

The proliferation of wills, trusts, IRA beneficiary designations, life insurance and annuity beneficiary designations, pay-on-death accounts, and account survivorship options creates too many unintended circumstances.

Unintended consequences also result from:

1. Failing to Update Your Will. Laws change every year. Your life changes also.
2. Bad Last Will. Anna Nicole Smith did not include her recently born child. She left her entire estate to her son who had died months before her. I'm involved in another case where a father left his estate to his "children," but didn't tell the lawyer who wrote the Will that he wanted to leave his estate to the two children that he had a relationship with, and not the other four biological children that he had not spoken to in years.
3. Disinheritance by Remarriage. Dad dies and Mom remarries. Mom writes a "simple" will and leaves her modest estate to her second husband. Mom dies, Mom's estate goes to her second husband. Then when second husband dies, guess where it all goes? That's right, it goes to second husband's children. Mom and Dad's children get zippo.
4. Disinheritance of Spouse by Failing to Plan. In Louisiana, if you don't write a Will, your assets will bypass your spouse in favor of your children or siblings. Your separate property goes to them outright, while your community property goes to your children subject to your spouse's usufruct - but your spouse can't sell assets without your heirs' permission.
5. Disinheritance From Too Many Death-Disposition Instruments. Let's say most of your wealth is tied up in IRAs. After your spouse died, you named your children as your IRA beneficiaries. When you later remarry, you set up your Will to include your new spouse. When your die, your spouse gets little or nothing because your Will doesn't control where your IRA goes at your death.

Well, I'm not going to present a problem without a solution. So, what do you do? Simple - own one of our VIP Memberships. As a member, you'll recognize the following benefits:

• Free Updates for Life. Due to law changes or your life changes.
• Free Annual Review of Your Assets. We'll monitor your estate to avoid estate tax, protect your estate from long term care costs, and the transfers at death will be fast and easy.
• Keep Peace. Take advantage of our "No Contest Clause" and our system for distribution of personal effects that have sentimental value to your heirs - NO FIGHTING!
• Make a PRICELESS video to transfer your values, experiences, feelings and proudest moments to future generations. My parents did this and it's AWESOME. I look forward one day to introducing my grandchildren (who don't exist yet) to their great-grandparents.
• Completely avoid attorney succession or probate costs at your death
• Attend, listen to on CD, or watch on DVD, monthly workshops on estate planning and aging related topics from community leaders
• Get answers to your commonly asked questions from your Members Only site.
• And more...

Just give me a call (225-329-2450) or send me an e-mail at paul@rabalaislaw.com, and we'll get you plugged in after answering any questions. Until next time,

PAR

New Estate Planning Service - Like Nothing Else

We've started a service that I can safely say is just "phenomenal."

Here it is: Of course you get your same high-quality customized estate planning legal documents, but in addition you get:

1. A video made of you so you can pass along your important family values to your grandchildren and great-grandchildren, and even your great, great grandchildren. How cool would it be to have a video of your grandparents explaining the joys and values of their lifetime. You can do the same for your descendants.
2. We inventory all your assets so, when you die, there's no need for your family to search for legal descriptions, life insurance, stock certificates, burial plot papers, bank accounts, and other paperwork. We get all that now so it's simple when you die for your loved ones.
3. We plug you into our system for disposing of personal effects. Disposition of your personal effects is one of the things families fight about the most. We eliminate that possibility.

There's so much more to this great service, but if you want to know the details, you'll have to ask by e-mailing me or posting a comment. Stay tuned because this is really good stuff.

PAR

Simple To Work With Us

Think you could use a little help?

Want to find out what we can do for you?

If you have a concern or question and want to talk to us about how we can help you, here's three ways you can do it:

1. Pick up the phone and call our office at 225-329-2450, or call toll free 866-491-3884. We help people all over the state of Louisiana and we even help people out of state. Mention what your primary concern is. Our awesome staff will point you in the right direction. They may even track me down while you're on the phone so I can speak with you.
2. E-mail me at paul@rabalaislaw.com I check it daily.
3. Comment to this post and I'll get an e-mail. If you need help, we'll get in touch with you.

Oh yeah. There's another way to get fast affordable Louisiana estate planning. If you want a simple Louisiana Will and estate plan, including power of attorney and living will, just go to www.YourLouisianaWill.com and within two days your estate plan could be complete.

Have you procrastinated in getting your estate planning addressed? Be honest and let us know. If you have procrastinated, you're not alone. Procrastination can be COSTLY! Take action now, get your affairs in order, and sleep each night with peace of mind.

PAR

Busy Day for Estate Planning Attorney

Today was busy. At 9:30 I met with a gentleman who lost his wife a couple weeks ago. They had assets in excess of the $2m estate tax exemption. He said he was grateful that his wife found me about ten years ago because there is no estate tax due now, and since she left him the lifetime usufruct of her entire estate, none of her assets will be included in his estate when he dies. We gathered all the info to prepare the succession documents.

At 10:30 I met with a couple to sign the necessary documents to protect their assets from being consumed by future long term care expenses.

At 11:30 I met with a nice couple. When I did their Wills years ago, their children were younger. Because we had kept in touch with them  through our e-newsletter, they came back in to update their estate plan. They changed their Powers of Attorney and Wills to give their children more authority to handle matters, and we made all-important changes to make the children's inheritance divorce-proof.

At 12:30 I met with a nice couple. They were concerned about the wife's illness and wanted to do some estate planning to protect what they have for themselves and their nine year old son.

At 1:30, I met with a couple. Both of their parents had been in the nursing home. They owned some property in Florida and a large CD. If they continued owning these assets, they will have to be consumed before the couple qualifies for Medicaid. I told them what they needed to do to protect the assets for themselves and their five children. They were very thankful.

At 2:30 I met with a nice woman. I had prepared numerous Wills for she and her husband over the years. Her husband died recently. I'm looking forward to helping her.

Special thanks to my hard-working employees, Stephanie and Laura, who did so much to make these meetings easy for me. Our clients are fortunate that they have Stephanie and Laura working for them. I couldn't do all this without them.