The Rabalais Law Firm's La. Estates Blog

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.

Owning Real Estate in Louisiana AND in Other States

 

I'm working on two matters today involving families owning real estate in Louisiana and real estate in other states. It can get confusing if this applies to you.

First, I'm working on getting a Revocable Living Trust set up for a Louisiana family. They own a home in Louisiana and they own real estate in two other states. They want and need to get the real estate in those two other states transferred to their trust in order to avoid the ancillary probate which is required when someone dies a resident of one state and they own real estate - in their name - in another state.

If you live in Louisiana and you establish a revocable living trust, your Louisiana attorney/law firm should transfer your Louisiana real estate to your trust, but you will need to retain the services of another lawyer or entity to transfer your out-of-state real estate to your trust and have it recorded in the proper county. Don't expect your Louisiana attorney to transfer your out of state real estate to your trust. Seek, find and retain an attorney in those other states to transfer that property to your trust. Doing this right will avoid a Louisiana succession when you die, and it will also avoid ancillary probates in other states if your trust owns all of your real estate when you die.

Second, we are working on a Louisiana succession of a Louisiana resident who died owning property in another state. We completed the Louisiana succession which transferred the Louisiana real estate plus all of the other assets, EXCEPT the real estate outside of Louisiana. Like always, we advised the family to seek out and retain an attorney in those other states to handle the ancillary probate in those other states and get the non-Louisiana real estate transferred. Don't expect your Louisiana Succession attorney to handle the ancillary probate in those other states.

So what should you do if you are alive and well and you own real estate in multiple states? In order to avoid multiple probates when you die, consider creating a revocable living trust and working with different attorneys in each state where you own real estate to get all of the real estate "funded" into the trust. A little effort now can avoid multiple court proceedings in multiple states when you die.

Finally, if someone dies a resident of another state (not Louisiana) owning real estate in Louisiana, you can contact us about retaining our legal services to quickly and efficiently handle the Louisiana ancillary probate which will transfer the title of the Louisiana real estate (also called "immovable property") to the proper heirs.

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

Revocable Living Trusts and The Louisiana Homestead Exemption

There seems to be a lot of sentiment in the Louisiana Legal community against the Revocable Living Trust because people may be misinformed as to the exact benefits of these trusts and the effects that these trusts have on your tax liability. I am here to dispel one of the most common misconceptions.

Many people are under the impression that, by transferring their home into a Revocable Living Trust, they lose the tax advantages of their Louisiana Homestead Exemption. Losing this exemption would be a major deterrent for anyone considering a living trust. The good news is, transferring your home into a Revocable Living Trust has no effect on your homestead exemption. You will still be afforded all of the advantages provided by our Louisiana tax laws. In 2006 the
Louisiana Constitution was amended to ensure this homestead exemption would still apply to all persons transferring property into Revocable Living Trusts.

Keeping this and all of the other benefits of Revocable Living Trusts in mind, these trusts remain a viable and simple way to avoid Louisiana Successions and the headache and lack of privacy accompanying the Succession procedure. If you would like to discuss your options when it  comes to forming a Revocable Living Trust feel free to contact me or one of my partners. You can reach me by phone or email me in the New Orleans/Metairie Area at (504) 247-1980 or 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

Secrets to Avoiding Estate Tax & Probate

 

Our firm is proud to announce the opening of two new offices in Mandeville and New Orleans. We will be serving new clients in those areas starting on November 15, 2010. To kick off our grand opening, we will be hosting a seminar on Secrets to Avoiding Estate Tax & Probate in 2 locations:

Metairie – Tuesday November 16, 2010
10:30-11:30 a.m. or 6:30-7:30 p.m.
Four Points Sheraton
6401 Veterans Memorial Blvd.
Metairie, LA 70003

Covington – Wednesday November 17, 2010
10:30-11:30 a.m. or 6:30-7:30 p.m.
Courtyard Marriott
101 Northpark Blvd.
Covington, LA 70433

At this one-time free event, you will learn how to:

• Avoid federal estate tax in 2011 and beyond.
• Avoid the delays, lawyer fees, court costs, and public nature of a Louisiana probate
• Leave a legacy of values to your family.
• Choose between a Living Trust and a Last Will

We have several outstanding testimonials from satisfied clients. I will mention a few in this post but you can always check our website, www.EstatePlanninginLouisiana.com to view more.

"My husband and I both admire Mr. Rabalais, not only as a very knowledgeable, prompt estate lawyer, but a true Christian, compassionalte person. He handled Lynn's estate and my Will i na very calm and clear manner, not to speak of very good advice to those of us not accustomed to estate matters. I highly recommend him to any one, and have done so many times."                           -Joanne Brassett 

"I attended Paul Rabalais' estate planning seminar several years ago and I procrastinated about making an appointment. I was very impressed with Mr. Rabalais' knowledge of the law, but I was fearful that the process would be confusing and time-consuming. I recently had Mr. Rabalais create a will, power of attorney, and a living will for me. He and his staff were extremely knowledgeable, kind and professional and he gently guided me through the process thoroughly explaining each action. For a wonderful peace of mind, I would highly recommend the Rabalais Law Firm to you."
                                                   -Elizabeth Ginn

There are three ways to register for this free event:

1. Call Toll Free at (866) 491-3884
2. Register Online at www.EstatePlanninginLouisiana.com or register on this blog
3. www.facebook.com/RabalaisLawFirm

Registration is required. Seating is limited. Please arrive 10 minutes early. Refreshments will be served.

To Register for the New Orleans location please fill out the form below:

Person Information
First Name *
Last Name *
Email *
Phone 1 *
Time Attending *
Number of Guests *

To Register for the Covington location please fill out the form below:

Person Information
First Name *
Last Name *
Email *
Phone 1 *
Time Attending *
Number of Guests *

This will be a very special event that won't be offered again. I encourage everyone who can to please attend and learn how to protect your family's legacy. We are expecting a full house so please register quickly. I look forward to see you there.

Top 3 Reasons People Want to Avoid the Louisiana Succession

I met with someone last week who came in to the office and wanted to make sure that he and his family avoided probate.

A little clarity: In Louisiana, we call the process of settling an estate after someone dies a "Succession." But in all other states this process is called "Probate."

Louisiana has a unique set of Succession Procedure Rules, unlike all other states. There are some states in which residents would "not get caught dead" without a living trust - no pun intended. Other states are more "probate friendly."

The following are the top reasons expressed to me by Louisiana residents why they want to avoid probate:

1. It's expensive. Every succession has at least three different forms of costs: court costs, attorney fees, and real estate recording charges. Many successions also incur accounting costs, executor fees, and litigation costs. Often times these total costs can range from $5,000 to $50,000. This can get pricey, particularly if a family with two parents would have to incur these costs twice - once when the first spouse dies and once when the surviving spouse dies.
2. It's time-consuming. Succession paperwork must be processed through the proper parish clerk of court offices. Delays often occur. We had someone come in recently that said he was involved in a Succession which took 14 years. In addition, many people come into our office complaining that their prior attorney took too long to prepare the succession pleadings. This is common because there are typically no "deadlines" in a succession. Thanks to our very fast Director of Client Services, Catherine Martinez, we prepare succession pleadings quickly and accurately, saving you time, effort and money.
3. It's public. Public Exposure of Your Accounts, Identity Theft and Scams on the Surviving Spouse are more likely after a Succession, because the Succession records are open to the public. Anyone with an inquiring mind can know all of your assets, account numbers, investment values, and credit card account numbers by accessing your Succession record online. This makes people feel uncomfortable. 

A Revocable Living Trust - when set up right and funded with the right assets - can help you and your family avoid a Louisiana Succession.

Our firm has attorneys now in the major metropolitan areas of the State of Louisiana. I serve our clients in the Baton Rouge area, Brent Durham serves our clients in the Northshore areas of Mandeville and Covington, and Chris Kane serves our clients in the New Orleans area.

If you'd like a no-cost legacy planning meeting for you and your family to discuss these important legal issues, give us a call at our toll-free number (866-491-3884) and we will be happy to discuss serving your important Louisiana estate planning needs.

Paul Rabalais

 

 

Understanding Forced Heirship

One of the many unique aspects of Louisiana law is the concept of forced heirship. It’s also one of the most confusing for our clients. Here, I’ve addressed some of our most frequently asked questions regarding forced heirship.

1) Who is a forced heir?

• A child who is under twenty-four at the time of your death.
• A child who is permanently incapable at the time of your death, regardless of age.
  • This means that they are permanently incapable of taking care of their person or administering their estate due to mental incapacity or physical infirmity.
  • The incapacity can be an inherited, incurable disease which will render the child incapable in the future, but this must be supported by medical documentation at the time of your death.
• A grandchild whose parent predeceased you and the parent would have been under twenty-four at the time of your death.
• A grandchild whose parent predeceased you and the grandchild is permanently incapable at the time of your death, regardless of age.

2) How can you disinherit a forced heir?

• The method of disinheriting the forced heir must:
  • Be in writing,
  • Specifically list the cause, which must have already occurred,
  • Specifically identify the forced heir, or make it very clear to whom you are referring.
• There are ONLY eight reasons for disinheriting a forced heir. They are applicable to children and grandchildren, except for marrying without your permission as a minor. These reason are:
  • A child raised a hand to you or has actually struck you,
  • A child is guilty of cruel treatment, a crime, or grievous injury toward you,
  • A child tried to kill you,
  • A child accused you, without reasonable basis, of a crime for which the punishment is life in prison or death,
  • A child used violence or coercion to try to prevent you from making a Will,
  • A child married without your permission while they were a minor,
  • A child was convicted of a crime for which the punishment is life in prison or death,
  • A child hasn’t contacted you for more than two years, without just cause, after turning 18, unless they were on active U.S. military duty for that time.
    • In this instance, after two years has passed with no contact, it does not matter if the child tries to contact you unless you reconcile with them.

3) Can a disinherited forced heir overcome the disinherison?

• Only by showing:
  • They reconciled with you after the fact,
    • The best form of proof of reconciliation would be a signed writing.
  • They were incapable of understanding their behavior because of age or mental capacity,
  • Their behavior was unintentional, or
  • Their behavior was justified under the circumstances.

4) What does a forced heir get?

• If you leave one forced heir, they are entitled to one-fourth of your estate.
• If you leave two or more forced heirs, they are entitled to split one-half of your estate.

5) What property is subject to forced heirship?

• If there is a forced heir who is domiciled in Louisiana at the time of your death, the answer is ALL of your property is subject to Louisiana forced heirship law.
• What if you die while living in another state, but you own property in Louisiana?
  • If there is a forced heir who lives in Louisiana, the property is subject to forced heirship laws, regardless of where you were living at the time of your death.
• What if you own property outside of Louisiana, but have a forced heir who lives in Louisiana?
  • While Louisiana courts have no jurisdiction over property located in other states, the court will take into account the value of the property located in other states when calculating the portion to which your forced heirs are entitled.

If you are interested in retaining our law firm to provide you with our estate planning legal services, contact us for a no-cost initial discussion at 225-329-2450, or email us at laura@rabalaislaw.com.

 ~Catherine Martinez

Every Once in a While This Happens - Heart Drops

I've been talking to a friend of mine for the last few weeks about his parents' situation. His father's health was deteriorating and the family wanted to make sure everything was in order from a legal standpoint.

A couple days ago my friend told me it was urgent that his father sign a Durable Power of Attorney so that my friend's mother could transact some business for her husband.

I said, "No problem." So we drafted the documents and emailed them to my friend so he could review them for accuracy. We talked and I agreed that I'd drop by the nursing home on my way home from work today and notarize his father's signature. My friend arranged for two witnesses to be available when I arrived this afternoon.

Well, I just got a call from my friend who said his father passed away last night. I was sorry for my friend to hear that.

He asked me what they should do. He said he wants to make sure that his mother's legal affairs are handled right from here on out. I suggested to him that after all the arrangements have concluded (they are on their way to New Orleans as I type this to make arrangements), he and his mother will need to come into the office so that the succession can be completed and their condo can be put in her name, and her estate plan and Medicaid plan can be established to protect her assets. I suspect I'll be meeting with them in my office within the next couple of weeks.

Paul

Important Webinar This Thursday, June 10, 2010

I'll be hosting a webinar this Thursday, June 10, 2010 on important estate planning issues for all Louisiana residents. It is designed for the layperson. I have a set agenda but I will also be answering questions typed in from the webinar attendees. The webinar is free. During the webinar you will discover tons of critical info, including:

1. How to proctect your surviving family members by utilizing our Will-based estate plan;
2. How to avoid Louisiana Succession by utilizing our Revocable Living Trust-based estate plan; and
3. How to protect your assets from long term care nursing home costs by utilizing our Medicaid Trust-based estate plan.

You'll find out about our crazy estate tax scenario, and much more. To register for the webinar and find out more, simply log on to www.RabalaisWebinars.com

See you on the webinar!

Paul