The Rabalais Law Firm's La. Estates Blog

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"Aforesaid" Estate Planning Documents Can and Should Be Easy To Understand

I find that some lawyers like to "strut their stuff" by creating lengthy, complex legal documents that the educated lay person cannot understand. Often I'll read documents that have language like:

• The said person...
• Wheretofore,...
• At any time heretofore held against the aforesaid parties...
• Why not change, "In the event that," to "If"

In fact, you may have seen some legalese that you'd like to share with our readers. It's everywhere and it cause lawyers and their frustrated clients to spend lots of time (and in many cases lots of the clients money) explaining and reexplaining legal gobbledygook.

I'm on a mission to make all of your estate planning legal documents in Louisiana arranged in a way so that they accomplish all of objectives that need to be accomplished, but in a way that is easy for the educated lay person to understand.

If you have a good example of legalese that you'd like to share, by all means post it as a comment.

Or if you'd like us to arrange an estate planning portfolio of legal documents for you that is written so that you know what you're doing, and your heirs will understand, then send me an email to get started at paul@rabalaislaw.com, or give my office a call at 225-329-2450.

Paul Rabalais

P.S. If you want an easy to understand explanation of Louisiana estate planning terms, purchase my book at Barnes & Noble or amazon.com

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

Come See Us At the Life After 50 Expo

I'll be an Exhibitor at the Life After 50 Expo sponsored by The Advocate & WBRZ Channel 2, on Saturday, April 19, 2008, at the Baton Rouge River Center Exhibition Hall. There's free admission, free parking, and lots of free valuable information.

Come by, visit our booth, and chat with me, our paralegals, Stephanie Purdy and Laura Bittel, and attorney James Vilas. We'll be there to answer any questions you have and provide you with important information to help you protect your family and your estate. See you there!

Paul Rabalais

Book Signing at Barnes & Noble

I'm flattered that Barnes & Noble Booksellers has asked me to do a Book Signing at their new Perkins Rowe location in Baton Rouge. They will be selling copies of my new book, "Estate Planning in Louisiana, A Layman's Guide To Understanding Wills, Trusts, Probate, Power of Attorney, Medicaid, Living Wills & Taxes."

Come visit me on Saturday, April 5, at 6:00pm. I've been in the new bookstore a couple of times and it is always crowded with booklovers. I'm looking forward to this event and I look forward to seeing you there.

Paul Rabalais

"Preserving Your Legacy" article in Baton Rouge Business Report

Congratulations to journalist David Jacobs and the Baton Rouge Business Report for publishing the article, "Preserving Your Legacy," in the January 15-28, 2008 edition of the Baton Rouge Business Report. You can read the article at http://www.businessreport.com/news/2008/jan/14/preserving-your-legacy-fnc1/

Any article in a business journal that addresses the often-thought-of-as mundane subject of estate planning is a positive thing, and David dove into estate planning a little deeper by addressing the topic of "incentive trusts" or "rewards-based trusts."

Paul Rabalais

24 Reasons Lousiana Residents Need a Will

This is one of the questions I get the most. I could write a book about why people in Louisiana need a Will. In fact - I did write a book about it!

But let's keep it simple. Here's 24 more popular reasons:

1. You control where your hard-earned assets go when you die - don't let the State of Louisiana control that.
2. Make things easier for your spouse. Without a Will, your spouse won't be able to sell the house without the proverbial Act of Congress.
3. Name your executor or co-executors, and alternate executors.
4. Prevent a judge from determining how your minor children's inheritance will be spent.
5. Prevent your children from having their inheritance thrown in their lap on their 18th birthday.
6. Protect your spouse from your children.
7. Protect your assets from going to your ex-son-in-law or your ex-daughter-in-law (wouldn't that be nice!)
8. Provide something for your grandchildren. Perhaps it can help them get a good education. In today's world, they'll need it.
9. Protect your children from your spouse.
10. Protect your children from their spouses and ex-spouses.
11. Avoid estate tax.
12. Protect your 401(k) and IRA.
13. Protect your estate in case your spouse or child(ren) die before you.
14. Enable your spouse to qualify for Medicaid if your spouse needs long term care. Otherwise, your spouse will spend $5,000 monthly depleting your assets.
15. Name a guardian (in Louisiana called "tutor") who will raise your children if you die while your children are minors.
16. Select a trustee to manage the inheritance for your heirs to protect them from their own ability (or lack thereof) to handle money wisely.
17. To provide that if your child dies and hasn't spent all of the inheritance, whatever's left goes to your child's children (don't even think that this happens automatically).
18. Make things easier in the event of a common disaster.
19. Prevent your assets from going to the State of Louisiana (although they could use it!)
20. Leave something to your favorite charity (there's a right and wrong way to do this).
21. Avoid disputes about expensive family heirlooms - or even cheap heirlooms that have sentimental value.
22. Inject a "No-Contest" clause so your heirs won't drain your estate for years in estate litigation.
23. Authorize your executor to act under the MUCH SIMPLER independent administration procedures.
24. Protect the family business.

Can you think of any more reasons why Louisiana residents need a Will?

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

Book Festival a Hit

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Had a great time yesterday at the Louisiana Book Festival. It was reported that 15,000 were in attendance on a picture perfect day. We sold lots of books but the best part was meeting all those people and hearing their varying life stories about the importance of estate planning.