All Trusts Are NOT the Same!

While trusts can be confusing at first to the lay person, trusts can be a valuable estate planning tool. Common types of trusts in Louisiana include:

• Revocable living trusts. Becoming increasingly popular for Louisiana residents because it allows families to avoid the court-supervised Succession procedure at death and provides for a faster and less-costly estate settlement at death. A revocable living trust can be extra beneficial if you own real estate in other states allowing your family to avoid multiple probates.

• Trusts for minors. If there’s a chance your minor child or minor grandchild will inherit assets from you, then you need to make sure those assets will be placed in trust so the courts won’t need to supervise the minor’s assets and so that the minor will be protected from squandering the assets when he or she reaches the age of 18.

• Trusts to avoid estate tax. Not as popular now since the estate tax exemption has increased from $600,000 to $5,300,000, but if estate taxes are likely, you need to consider these irrevocable trusts.

• Special Needs Trusts. If you have a child with special needs, make sure any inheritance you leave that child is placed in a Special Needs Trust. This will help preserve government benefits that benefit the child.

• Trusts for Married Couples. A way to make your assets available for your spouse after you die, but when your spouse later dies, the trust assets will revert back to your heirs, not your spouse’s heirs.

• Charitable Trust. A vehicle which allows you to transfer appreciated assets to a charity, have them sold with no tax consequences, receive an income off those assets for your lifetime, and at your death the remaining trust assets are passed along to your favorite charity or charities.

 

If you are interested in developing your legal estate plan, please email me at laura@lpochelaw.com or call my office at 225-224-8099.  I look forward to the opportunity to assist you.