Anyone who reads this blog consistently knows my practice advocates for the use of living trusts in Louisiana. For many families, living trusts create a more efficient estate settlement through their avoidance of the Louisiana probate process. Typically, we encourage families to transfer into trust only those assets that must pass through succession. These assets generally include real estate and non-retirement investment accounts.
When it comes to motor vehicles, Louisiana estate planning attorneys diverge on whether these should be placed in trust. Your family can transfer cars and boats at death without the need for probate. The Louisiana Office of Motor Vehicles and Department of Wildlife and Fisheries only require an affidavit signed by the spouse and all children to transfer title at death. Accordingly, we urge many families to leave cars and boats outside of their Louisiana Living Trust. Leaving them out will save the family the cost of retitling cars and boats at the time they establish their trust. However, this is not always the case.
In some family situations, placing cars and boats into a Louisiana living trust may be a good idea. Some trust planners have no spouse or children, so the parties who would typically sign the affidavit don’t exist. In other situations, maybe not all children would be willing to sign the affidavit, especially if estranged from the parent(s). Finally, perhaps the vehicles carry substantial value which a client would like to protect from nursing homes. Placing motor vehicles in trust in these scenarios alleviates backend issues that could arise and may be worth the added cost.
If you are interested in learning more about living trust options for your family, call Legacy Law Center at (504) 274-1980 in Metairie, New Orleans, and surrounding areas or call (985) 246-3020 in Mandeville, Covington, Slidell, Houma , and Thibodaux.