The Rabalais Law Firm's La. Estates Blog

Free Living Trust Events on Tuesday, May 31 and Wednesday, June 1

Avoid Louisiana Probate with a Living Trust

Attend one of these exclusive events and find out:

• Why a living trust may be "a must" if you own real estate in or outside of Louisiana.
• How to avoid estate tax AND capital gains tax
• Which assets should (and should not) be transferred to your turst to avoid probate.
• How to keep your estate planning legal documents up-to-date for the rest of your life.
• How your trust excludes the deceased spouse's share of the estate when the surviving spouse needs to apply to the government for additional health care benefits.
• How a trust allows for uninterrupted management of your estate if you become incapacitated.

This event will be held on 2 different dates at several different locations. Please fill out the form below for the seminar you would like to attend or call our office at 1-866-491-3884 to register! Seating is limited so register now!

 

Tuesday, May 31

Marrero Lions Club
2334 Barataria Blvd.
Marrero, LA 70072
10:30-11:30am

Marrero Registration May 31 at 10:30
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Hampton Inn LaPlace
4288 Hwy. 51
LaPlace, LA 70068
3:00-4:00pm

LaPlace Registration May 31 at 3:00pm
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_________________________________________________

Wednesday, June 1

Holiday Inn Slidell
327 Voters Rd.
Slidell, LA 70461
10:30-11:30am

Slidell Registration June 1 at 10:30am
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Webinar Review Part 1: How To Decide Between A Louisiana Last Will and a Living Trust For Your Family

I'd like to thank everyone who attended yesterday's Webinar, "How to Decide Between a Louisiana Last Will and a Living Trust For Your Family". This great live event was designed to give your an opportunity to evaluate your family circumstances and choose which Estate Planning alternative best suits your needs and desires. For those who were unable to attend, I'd now like to offer a review of the topics discussed so you can get the gain the same great information received by yesterday's webinar attendees.

1. Your Two Estate Planning Alternatives

• A Professional Estate Plan is a must for anyone who wants to control the distribution of their assets after their passing. Without an estate plan this distribution is left up to our Louisiana Intestacy Laws which are not always in line with your individual wishes.
• Will based planning is the first and most common Estate Planning alternative. It is quick and easy, but your estate must go through probate when you die leaving a will and certain probate assets in your name.
• Trust Based Estate Planning is the second alternative. In this scenario a living trust will govern the distribution of most of your property with the added benefit of avoiding Louisiana probate which will be discussed in greater detail as we move along.

2. How Wills and Louisiana Living Trusts are Similar

• You can accomplish a number of common estate planning goals using either a will or a trust.

With both you can:

• Distribute your estate among many different classes heirs in the exact proportions you desire. Without a plan, only the highest ranking class of your heirs under Louisiana law will share in your estate to the exclusion of all others.
• Delay the inheritance left to your children, grandchildren, and other heirs so that they do not mismanage a large inheritance received at a young age.
• Keep assets in your family in the event of your spouse’s remarriage.
• Plan for Estate Tax Avoidance.
• Ensure a Step-up in basis on your property at death for purposes of capital gains tax planning.

3. The Simplicity of Will Based Planning

• Wills can be completed and put in place quickly. Once you have made all the important planning decisions regarding your estate, you can have a will in place in less than a day.
• No court filings are required
• No transfers or alterations of property titles are required.
• It is easy to revoke your will.

That does it for Part 1 of our webinar review. Tomorrow I will cover the burdens of probate and how living trusts work to avoid probate as well as factors to consider when deciding between a will and living trust.

If you have any questions or would like to meet with me to discuss you Estate Planning options call me at (504) 274-1980 or send me an email to chris@rabalaislaw.com.

 

Chris Kane, Attorney

Director, New Orleans Office

Free Webinar: “How To Decide Between a Louisiana Last Will or Living Trust for Your Family”

Hi Everyone, I'd like to Take this opportunity to announce my upcoming free webinar, "How To Decide Between a Louisiana Last Will or Living Trust for Your Family". This informative event is scheduled for Wednesday, March 16 at 2:30. The webinar should last for 30 minutes with a 15 minute question and answer session following the the presentation.

This webinar is ideal for Louisiana Residents interested in learning the differences between using a Last Will for Estate Planning and using a a Revocable Living Trust to accomplish your Estate Planning goals. This webinar will go in depth about the reasons for and against each estate planning method so you can decide which is right for your family.

 

You can register for this webinar at https://www1.gotomeeting.com/register/611293008

As always, If you are  in the New Orleans / Metairie Metro Area or Mandeville / Covington and  are interested in discussing your estate planning options with me one-on-one; feel free to call me at (504) 274-1980 or email me at chris@rabalaislaw.com.

 

Chris Kane, Attorney

Director, New Orleans Office

Questions from Mandeville Living Trust and Estate Planning Seminar

 

Had another packed house this morning for our event in Mandeville. The above photo is me presenting my most closely guarded estate planning secrets. Barely had enough chairs in the room to accomodate everyone in attendance. Before we started my presentation filled with my estate planning secrets for Louisiana residents, I asked the audience if they had any questions that they wanted me to address during the presentation. I jotted them down as they asked. They asked the following:

1. What is a Living Trust?
2. Do you get to keep the property tax homestead exemption if your home is in your living trust?
3. What should you do if you own real estate that is out-of-state?
4. If you live in two different states, where should you make your Will or Trust?
5. How does a Power of Attorney and Living Will fit in with a Living Trust?
6. How long does it take to create and fund a Living Trust?
7. What is the cost to establish a living trust?
8. Should you avoid putting real estate into a trust?
9. What if I set up estate planning documents in Louisiana and then move to another state?
10. Should I do anything different if all of my children live out of state?
11. What considerations exist if a married person owns both separate property and community property?

These were all of the questions asked BEFORE the seminar even began. At the end I answered about another 40-50 questions. Quite the inquiring audience.

Of the three events I've given in the last 24 hours to packed rooms, I'd have to rate this morning's crowd as the most inquisitive. Looking forward to fielding questions from tonight's crowd at the Mandeville Community Center.

For Covington and Mandeville estate planning, give our Mandeville office a call at (985) 246-3020.

Packed Trust Seminar This Morning

I had quite the lively, energetic, and fun crowd this morning at our Living Trust Event in Metairie. We had a crowd that new some stuff and asked some challenging questions like:

• What if a trust doesn't designate a successor trustee?
• What are some reasons to "not" have a trust?
• How do lawyers charge for a Louisiana probate?
• How much FDIC insurance protection do trusts get?
• How can someone do a Louisiana Succession without one of the heirs knowing about it?
• What happens when someone abuses a Power of Attorney?
• What if someone lives outside of Louisiana but owns real estate in Louisiana?
• How effective is a "Transfer on Death" account designation in Louisiana?
• Do our services encompass transferring out of state real estate to a trust?

Fortunately I had the chance to personally meet many of the attendees before and after the event - several of whom will be coming into our office in the coming days and weeks to get their legal affairs in order for themselves and their family. The following is a photo Erika shot during the presentation.

 
Hope I have the energy to do this all over again this evening and twice again tomorrow on the Northshore. I'm sure I will...it's fun meeting so many incredible Louisiana people and their families.

Webinar Review Part 2: What Louisiana Lawyers Won't Tell You About Avoiding Probate Using Revocable Living Trusts

Yesterday you learned more about revocable living trusts and how they allow you to avoid probate. Today I'd like to continue the review of our recent webinar "What Louisiana Lawyers Won't Tell You About Avoiding Probate Using Revocable Living Trusts" This information could help you and your family avoid many headaches in the future by creating a properly executed trust.

Your Property In Trust

• Not all of your assets need to be placed in trust, only certain assets in your name are considered probate assets and only those assets are must go through a probate procedure to be fully transferred to your heirs.
• Probate assets include:
  • Your Home
  • Other Real Estate Holdings, whether located in Louisiana or another state
  • Stocks and Investments
  • Certificates of Deposit
• Non-Probate Assets include:
  • Personal Effects - your family will handle distribution of these assets internally.
  • Vehicles and Boats  - State law provides for transfer of these assets at Office of Motor Vehicles or Department of Wildlife and Fisheries.
  • 401Ks, IRA’s  - These pass by beneficiary designation.
  • Life Insurance Policies - These pass by beneficiary designation.
  • Bank Accounts - Can stay out of your trust as long as you grant a child or other trusted friend or relative as a signatory on your accounts.

Why Louisiana Lawyers Ignore Trusts

• žMany are unfamiliar with Trusts
  • While trusts have caught on along the West Coast and in the Northeast. Our local culture has not yet accepted the transition from using wills to using trusts for basic estate planning
  • There seem to be adherence to traditional methods of probating wills
• Common Misconceptions about Revocable Living Trusts
  • –Revocable Trusts are not taxed as a separate entity, the assets in revocable trusts are veiwed as your assets for tax purposes. No separate tax return needs to be filed for the trust.
  • You will not lose your  homestead exemption by placing your home into trust
  • –You retain control over your assets in trust and can remove assets in trust at any time 
• žLawyers can make more money from probate fees
  • The cost to set up a trust is often far less than the cost of probate
  • Many lawyers charge a percentage of the estate value, so probate fees on large estates can be exorbitant
  • Multiple probates for married couples and out of state property means more fee.

Is a Trust Right For You?ž

• A trust will replace your will and will revoke all of your prior wills.
• If you are young and still acquiring assets, a trust is probably not right for you. Wait until you have acquired the majority of your assets before setting up a trust.
• žTransfer of assets into trust can be complicated. 
• žThe ultimate question: Do you want to do a little work now to save your family money and time after your death?

I hope you have found this review to be valuable. If you would like to discuss your estate and how a revocable living trust could benefit you, give me a call in the New Orleans/Metairie/Northshore Area at (504) 247-1980 or send an email to chris@rabalaislaw.com. In Baton Rouge, contact Paul Rabalais at 225-329-2450 or paul@rabalaislaw.com.

Chris Kane, Attorney

Director, New Orleans Office

Webinar Review Part 1: What Louisiana Lawyers Won't Tell You About Avoiding Probate Using Revocable Living Trusts

I'd like to thank all who attended our webinar, "What Louisiana Lawyers Won't Tell You About Avoiding Probate Using Revocable Living Trusts". The webinar provided a great opportunity to familiarize yourself with Revocable Living Trusts and the common misconceptions abound among the Louisiana Legal community. For those of you who were unable to make it I'd like to lay out the topics discussed to give you a review of the information provided in the webinar. Today, I will cover the first 3 topics discussed during the webinar and tomorrow's blog post will cover the remaining topics discussed in the webinar.

What is a Revocable Living Trust?

• žBy creating a trust, you create a legal entity to hold your property. Think of a Trust as a box which holds certain pieces of your property.
• žTrusts are a way for you to get your assets out of your name.
• Revocable trusts are different from irrevocable trusts in that you retain your control over the assets you place into trust.
• žWith Revocable Trusts you can
  • Avoid costly probate procedures; when certain assets are no longer in your name those assets do not need to go through probate.
  • Retain control over your property, meaning you can sell assets in trust, remove assets from trust or purchase new assets in the name of the trust.
  • Create a fund of assets that will benefit your family for generations.

Why Do You Want to Avoid Probate?

• What is Probate?
  • Probate is a court proceeding, in Louisiana we call this court proceeding a Succession
  • Probates or Succession place your heirs in possession of your estate after death.
  • Without probate your heirs cannot take action to sell items in your estate or access other assets left in your estate.
• Probate is Time Consuming
  • The average probate procedure in Louisiana takes about 3 months, but it could be much longer if any complications arise.
• Probate is Costly
  • žYou can expect to spend at least $5,000 per probate procedure. Costs can increase greatly if there are any challenges to the probate or other complications.
• Multiple Probates
  • When you own real estate in multiple states, probate must be completed in each state where you hold property in order for your heirs to access all of your property after you pass.
  • Each probate procedure comes with its own costs and delays.
• Probate for each spouse
  • With married couples owning property jointly, there is a need to probate each spouse's portion of co-owned property.
  • Each probate procedure comes with its own costs and delays.
• žProbate is Public Record; anyone can access all the court filings associated with the probate of your estate
  • Included in these filings is your will, and a detailed list of all the property left in your estate and the approximate value of that property.
  • This information could be used by unscrupulous creditors and salesmen to harass your heirs after you pass
  • This is especially alarming this day in age where almost all public records can be accessed on the internet.

How Trusts Avoid Probate?

• žWhen assets are not in your name, probate is not needed because probate is used to determine ownership of assets titled in you name. Your trust will name beneficiaries who will share in the trust assets after your passing.
• žControl over your estate in trust transfers automatically to your successor trustee, a person you appoint to oversee the distribution of trust assets in lieu of a the state courts.
• žYour estate in Trust is distributed according to the terms of your trust as opposed to the terms of a will.
• žYour family saves time, cost, and headaches.

Tomorrow I will be writing part two of this webinar review covering which of your assets need to be placed into trust, what Louisiana lawyers are not telling you about trusts, and whether a trust is right for you.

If you would like to discuss your estate and how a revocable living trust could benefit your family, give me a call in the New Orleans/Metairie/Northshore Area at (504) 247-1980 or send an email to chris@rabalaislaw.com. In Baton Rouge, contact Paul Rabalais at 225-329-2450 or paul@rabalaislaw.com.

Chris Kane, Attorney

Director, New Orleans Office

Webinar Review: Reasons 4-7 Louisiana Residents Need a Will in 2011

Yesterday you learned Reasons 1-3 Louisiana Residents Need a Will in 2011. Today I'd like to share reasons 4-7 with you to complete the review of our recent webinar "7 Reasons Louisiana Residents Need a Will in 2011". This information could help you and your family avoid many headaches in the future by drafting a professionally prepared will.

4. Divide Assets Among Different Classes of Heirs

• Intestacy allows one class to take to the exclusion of all others meaning only one class of heirs will receive an inheritance from your estate
• With a will, you can provide for many generations of your family including children, grandchildren, siblings, nieces and nephews, and friends
• A will allows you to leave property to non-relatives

5. Leave a Legacy To Charity

• With a will you can leave a portion of your estate to the causes most important to you
• You can direct how and where the money will be used by the charity of your choice
• Charitable Contributions lower the value of your estate for Estate Tax avoidance

6. Avoid Estate Tax

• You can draft a will which defers any Estate Tax that would be due at the death of the first spouse
  
  • When exercising this deferment, you still retain your spouse’s exemption
• Deferring payment of Estate Tax gives you more time to gift down the value of your estate

7. Control your Estate after Death

• Conditional Bequests make sure that money inherited by you heirs is spent in the way you want
• Directions to your Executor in a properly drafted will plan will create clarity and allow you to give certain pieces of property to the heirs who would enjoy it the most
• Your Estate Planning Letter will pass on your desires and intentions even after your death

I hope you have found these 7 reasons valuable. If you would like to discuss your estate and how a properly drafted will could benefit you, give me a call in the New Orleans/Metairie Area at (504) 247-1980 or send an email to chris@rabalaislaw.com. On the Northshore, contact Brent Durham at (985) 246-3020 or brent@rabalaislaw.com. In Baton Rouge, contact Paul Rabalais at 225-329-2450 or paul@rabalaislaw.com.

Chris Kane, Attorney

Director, New Orleans Office

Webinar Review: Reasons 1-3 Louisiana Residents Need a Will in 2011

I'd like to thank all who attended our webinar, 7 Reasons Louisiana Residents Need a Will in 2011. I thought it was a great opportunity to learn more about your last will and testament. For those of you who were unable to make it I'd like to lay out the topics discussed to give you a review of the information provided in the webinar.

What Happens When You Die Without A Will?

• Over 60% of Americans are living without a will
• Your Estate is distributed by the rules of Intestacy; laws that establish the order of heirs
• In what order do your heirs take your Estate?
  
  • Descendants (children, grandchildren etc.)
  • Siblings
  • Parents
  • Spouse
• Each class of heirs takes to the exclusion of all other classes

1. Protect Your Spouse

• Louisiana Intestacy structure disfavors the surviving spouse.
• Usufruct Laws allow you to give your spouse greater control over your estate.
• Remarriage safeguards prevent your estate from passing to yours surviving spouses new partner

2. Designate Who is In Charge

• You can name an Executor to oversee the distribution of your estate
  
  • Independent Executors can sell, lease or encumber estate assets without court supervision.
• You can also create Testamentary Trusts
  • Trusts are typically used to delay distribution of your estate to minor children who are not yet ready to accept an inheritance because they lack responsibility and money management abilities
  • You name a Trustee in charge of managing your assets that remain in trust until those assets can pass to your children.

3. Name A Guardian For Your Children

• The Louisiana Tutorship System governs who will raise your children in the event both parents are gone if you don't name replacement parents.
  
  • Court Involvement with tutorship creates delays and leads to instability for your kids
  • There is potential for infighting among relatives who want to raise your kids
• You can name a non-relative Godparent as Guardian of your children.

Tomorrow I will be writing part two of this webinar review featuring reasons 4-7 Louisiana Residents Need a Will in 2011.

If you would like to discuss your estate and how a properly drafted will could benefit you, give me a call in the New Orleans/Metairie Area at (504) 247-1980 or send an email to chris@rabalaislaw.com. On the Northshore, contact Brent Durham at (985) 246-3020 or brent@rabalaislaw.com. In Baton Rouge, contact Paul Rabalais at 225-329-2450 or paul@rabalaislaw.com.

Chris Kane, Attorney

Director, New Orleans Office

I Have a Speaking Engagement!

Just wanted to inform those in Southeast Louisiana that I will be doing a presentation on a variety of Estate Planning topics in less than two weeks. The event will take place at Mike Anderson's in Gonzales, LA on December 1 at 6:30 pm. I will be discussing a variety of topics including the importance of having a will/living will/POAs, Revocable Living Trusts, coming estate tax changes, and average costs to set up wills and trusts.

I will be one of four speakers at this event put together by Merrill Lynch advisor, Heather Schramm.  Other topics that will be covered include: benefits of Long term care insurance, options for in home care, how to make the decision on purchasing long term care, new partnership laws, and an outlook for future financial markets.

If you are interested in attending this event please contact Heather Schramm with Merrill Lynch at heather_schramm@ml.com.

If you have any questions for me regarding your estate which you would like me to address at this event call me at (504) 274-1980 or email me at Chris@rabalaislaw.com.

Chris Kane, Attorney

Director, New Orleans Office