Last week I met with a Mandeville client mourning the recent loss of her husband. The husband wrote a will leaving everything to his wife. However, the will does not cover his IRA, one of the largest assets in his estate. Instead beneficiary designations govern the disposition of IRAs . When one fails to monitor and update the beneficiary designation, absurd outcomes can occur. In this case, the husband's ex-girlfriend remained listed as the 100% beneficiary for the IRA! Unless we can convince the ex-girlfriend to do the right thing and disclaim the IRA, the account will pass to her. [...]

This week I encountered an interesting case study in Louisiana Intestacy Law. Intestacy laws take over when someone dies without a will. I am working on the intestate succession with a client whose son recently died. The son had no spouse or children. His only surviving heirs are his two parents and his half-sibling on his father's side.  Under Louisiana Intestacy, when someone dies with only surviving parents and siblings, the usufruct (lifetime use) of their estate passes equally to their parents. When the parent's later die, their use right ends and the assets of the child's estate vest equally [...]

Qualified Retirement Accounts like IRAs and 401ks hold a unique place in the Louisiana Estate Planning world. While IRAs and 401ks form part of your estate for tax purposes, you will or trust does not cover these accounts. Instead, beneficiary designations govern their distribution. After the account holder dies, the beneficiaries simply submit a death certificate and claim forms. Upon approval, the account rolls over to the beneficiaries. Because the deceased account owner never paid income tax on the funds in the retirement account, the beneficiaries are responsible for payment of income taxes on the inherited account. Typically, a beneficiary [...]