One of the main goals of estate planning is being able to pass down as much of the creator’s assets as possible to the beneficiaries. Some people want to do that as quickly as possible and with as little cost to the beneficiaries as possible. For some, this means trying to avoid having to go through a lengthy probate process.
The process of going through probate is known as succession in Louisiana. It can be slow and stressful, but some options might make this a bit easier.
1. Set up trusts
Trusts make it possible to avoid succession. You can opt to use a revocable trust that you can alter or cancel as you choose or an irrevocable trust that can’t be changed without the permission of the beneficiaries or court. Once you establish the trust, you fund it by transferring assets into the trust. The assets held by the trust are managed by the trustee, who is a person you appoint if it’s an irrevocable trust or by you if it’s a revocable trust. They are passed down to the beneficiaries after you pass away without them having to go through the succession process.
2. Name beneficiaries on accounts
Certain accounts, such as life insurance policies, as well as checking, savings and retirement accounts, allow you to name a beneficiary. This is known as a transfer on death or a Totten trust. The person you name won’t have access to your account while you’re living. Instead, they’ll have to provide the institution with your death certificate and their photo identification so they can access the account.
3. Consider usufruct
Usufruct is a limited right for a person to use an asset for a specific purpose even though it’s owned by someone else. In Louisiana, this is often used as a way for a surviving spouse to remain in a home that’s passed down to someone else, such as your adult children, when you pass away.
There are also some other options, such as small succession procedures, that may make it possible to minimize the succession process. Understanding these is critical if they apply to you, so it may be beneficial for you to work with someone familiar with this state’s estate planning and succession laws.