Yesterday, I visited with a married couple at their house in Houma to discuss how to best structure their Louisiana Estate Plan. Their biggest concern was simplifying the estate settlement process to avoid complications, costs, and delays after death. However, they were also concerned because they were both on their second marriage and had a marriage contract (prenuptial agreement) which classified certain assets that they owned as separate property. Traditionally, the surviving spouse remains in control of the entire estate as long as they live. This couple wanted their separate property to go out to each of their children when they died regardless of whether they were the first or second spouse to pass.
To accomplish their goals, we set up a revocable living trust that would own both their separate and community property. By having their estate structured as a revocable trust, they can avoid having the surviving spouse and kids become involved in 2 court supervised succession procedures (one after each spouse passes). By avoiding probate, they will avoid $10,000-$20,000 in attorneys fees at death, delays in the court process, and avoid the likelihood of conflict between the surviving spouse and stepchildren.
Regarding the issue between separate and community property, we were able to structure their Louisiana Trust in a way that places each spouse’s children in control of the separate assets immediately at the death of that spouse, regardless of whether the other spouse is still living. This way the children can go ahead and get a portion of their parents’ estate without having to wait for their stepparent to pass. As is often the case with Louisiana estate planning, if you think outside the box you can structure your estate plan to address many of the concerns that are specific to your family situation.
To discuss creative ways to structure your Louisiana Estate plan to minimize, costs, delays, and family conflict call (504) 274-1980 in the Metairie and New Orleans Area or call (985) 246-3020 in Mandeville, Covington, Slidell, Houma, Thibodaux, and surrounding areas.