The Rabalais Law Firm's La. Estates Blog

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

Live Webinar: 7 Reasons Louisiana Residents Need a Will in 2011

I am excited to announce our next live webinar, "7 Reasons Louisiana Residents Need a Will in 2011". This event will take place on Tuesday, December 14 at 12:30 P.M. You will find this 30 minute presentation to be of great value whether you already have a will prepared or whether you are currently considering your options in planning for your estate.

Over 60% of adults in America are living without a last will and testament. A will is a necessity for those who want control over the distribution of their estate after their death. A will also prevents a number problems that could arise after your death. In Louisiana, our unique laws provide an even greater incentive for families to plan for the future of their estate. At this free live event, you will learn about the most common problems families experience when a loved one dies without a will, and you will learn how these problems can be easily avoided by drafting a last will!

Click Here to Register Now

If you would like to discuss your estate and how a will could affect 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

Many Americans are Living Without a Will

During a speaking engagement last night, a gentleman posed the question to me, "How many people are living without a will?" I was taken aback by this question because I honestly did not know the answer. I have spent all my time preaching the importance of having proper Estate Planning, but didn't realize how high the level of need is for professional estate services. When I got home, I immediately checked to see if I could find any statistics to indicate the number of Americans without a will, and the results were surprising.

According to recent studies performed in 2007 and 2008 by Martindale-Hubble and FindLaw.com, between 55% and 60% of American adults do not have any will in place. I imagine this results from a lack of awareness as to the importance of proper planning and denial as to your ultimate death.

In Louisiana particularly, the failure to leave a will could lead to unwanted results. When people die without a will in the Louisiana all of their property is distributed according to the rules of intestacy. In most other states the surviving spouse takes the property first, but not in Louisiana. The rules first give all property to any descendants you have, this includes children and grandchildren whose parent (your child) died before you. The descendants take to the exclusion of all other heirs. Next property goes to your siblings to the exclusion of all others if you have no descendants. Third the property goes to your parents or surviving parents to the exclusion of all others if you have no siblings. Fourth, your property will go to your spouse.

In order to make sure your spouse will acquire ownership of some or all of your estate in Louisiana, you need a will. A will is also necessary if you want a variety of relatives at different levels to share in your property after you die. Lastly, a will is needed if you plan on leaving any of your estate for a charitable purpose. Without a will, the distribution of your estate is beyond your control.

If you are interested in creating a professionally done will or other matters concerning your estate 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

       

Looking For Expert on Term Life Insurance AND the Internet

I'm on a mission to make it easy for parents with minor children to legally and financially protect their kids. My wife, Amy, and I have five kids and we know how busy it is these days for parents to take time to address these important but often neglected legal and financial issues. Most parents ignore that fact that they need to create important legal documents to name guardians for their kids, and to require that their children's inheritance be placed in trust for their kids.

Here's a few things I've done to accomplish this goal - but I've got a long way to go:

• I wrote a book in layman's terms which teaches parents of minor children what they need to do to protect their minor children.

• I created a website called www.yourkidsguardian.com. Louisiana parents can go to this website and create free legal documents designating the guardian of their minor children in the event parents die before their children reach age 18.

• I created a separate company which hosts a website which allows Louisiana parents to create self help legal documents like Wills, Wills with Testamentary Trusts, Durable Powers of Attorney, Health Care Powers of Attorney, and Living Wills. The site is still in test mode at this moment but you can check it out at www.YourLouisianaWill.com

I know that many parents have also neglected to purchase term insurance to provide for their minor children. On my www.YourLouisianaWill.com site, I'd like to give parents an opportunity to purchase term insurance (which would be payable to their children's trust).

I'm looking for someone who is an expert in both term insurance AND the internet that can partner with me to provide this valuable service to Louisiana parents. Do not contact me if you are not familiar with internet marketing, website development, marketing campaigns, and you are qualified, experienced, and licensed to sell term insurance in Louisiana. The person I work with must be courteous to others, self-motivated, and have a passion for what they do.

If you think you can help, send me an email at paul@rabalaislaw.com and let me know why. This is a tremendous opportunity.

Paul Rabalais 

How Louisiana Parents Can Designate the Legal Guardian for Their Minor Kids

This is an issue that is close to my heart. My wife, Amy, and I smack dab in the middle of raising our five children. Our children mean the world to us and we certainly want what is best for them.

One of the most important things you can do as a parent of a minor child is to designate their legal guardian in the event you die before your children reach the age of majority - which in Louisiana is 18.

Without the proper designation, a judge will select your children's guardian. Even if the judge puts your children and extended family through trying hearings to determine who the judge thinks would be best for your children, no one knows better than you who could best raise your children if you die.

The Louisiana term for guardian is "tutor." Essentially, it is the backup parent that will take your place if you die before your children reach age 18. Certainly you want to have a say-so in who will raise your children if you can't.

Louisiana have parents have two ways (and two ways only) to designate their children's legal guardian:

1. Designate it in your Will. This reason alone is enough for parents of minor children to have Wills. Reality is, however, that most parents of minor children procrastinate (a costly mistake and not a valid excuse) on getting all of their legal affairs in order; or
2. Sign a simple declaration executed before a notary and two witnesses.

I'm working on some legal documents that parents can download for free and designate the legal guardian for their children in the event the parent or parents die before the children reach majority. Every Louisiana parent should make this designation!

Stay tuned for additional information about these free legal forms that you can download, complete, and sign.

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

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

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

Warning: Don't Make Your "Worst" Buy at "Best Buy"

I was walking around in the electronics store, Best Buy, yesterday doing a little Christmas shopping. I stumbled across software called, Quicken Willmaker Plus 2008.

First of all, you're asking for big-time trouble if you engage in the preparation of Louisiana estate planning legal documents without good legal advice. Second, as I was perusing the packaging box of this software, I noticed the small print that states, "Estate Planning Documents Not Valid In Louisiana."

My question, of course, is, "WHY IN THE WORLD IS "BEST BUY" AND "QUICKEN" SELLING WILL PREPARATION SOFTWARE TO LOUISIANA CONSUMERS WHEN THEY ADMIT THAT THEIR DOCUMENTS ARE NOT VALID IN LOUISIANA?"

Although I'm not a litigation attorney, I smell a class action. Any thoughts?

PAR

Easy Way To Name Guardian For Minor Children

If you were gone, would you want to have input on who would raise your minor children? Of course you would. But if you haven't properly designated your children's guardian in your Will, a judge at the local parish courthouse will decide who will raise your children. Don't let this happen!!!

If you die before your children reach the age of 18, would you want a judge to have to approve every expenditure of your children's money before it is spent? Do you think your minor children will be fully capable of managing their inheritance on their own on their 18th birthday (because that's when they'll get it if you don't plan otherwise)?

Name a guardian for your minor kids, and have a testamentary trust in your Will so that you designate who will handle your children's finances. Your children's money will be in the right hands, and it won't all be dumped in their lap on their 18th birthday.

How do you do this? It's simple, fast, and affordable. Go to www.YourLouisianaWill.com and follow the easy three-step process to protecting your minor children. You'll save time and money. I can't think of anything more important you could do today than to properly provide for you kids.

Have a happy holiday season!

PAR