Life is always changing, and so should your estate plan. Think of your estate plan as instructions for what happens to your property and who takes care of you if you can’t make decisions. It includes essential papers like wills and powers of attorney. But what happens when life throws you a curveball? That’s when it’s time to take another look at your plan.
Big life changes
Certain events in life mean you should update your estate plan to ensure that your documents are up-to-date and effective. Here are some examples:
- Marriage or divorce: Getting married means you probably want your spouse to be included in your plan. Getting divorced means you probably want to remove your ex-spouse.
- Birth or adoption of a child: When you have a new child, you’ll want to make sure they’re taken care of in your plan.
- Death of a beneficiary: If someone you’ve named in your will passes away, you’ll need to choose someone else.
- Moving to a new state: Different states have different laws, so moving to Louisiana means your old estate plan might not work anymore.
- Major changes in assets: Did you win the lottery or start a successful business? Big changes in what you own mean you should update your plan.
Tax law changes and their impact on Louisiana estates
While Louisiana doesn’t currently have a state inheritance or estate tax, federal tax laws can still affect your estate. The federal estate tax exemption changes periodically, and these changes can have a significant impact on your estate planning strategy.
For example, the current federal estate tax exemption is set to decrease in 2026 unless Congress takes action. This potential change could affect estates that were previously under the exemption threshold. Reviewing your plan regularly ensures you’re taking advantage of current tax laws and planning for future changes.
Louisiana-specific estate laws and forced heirship
Louisiana’s legal system is different from the rest of the United States. It follows civil law rather than common law, which affects how estates are handled. One of the most notable differences is Louisiana’s forced heirship law. This law requires that children under 24 or those with permanent disabilities inherit a portion of their parents’ estate, regardless of the parents’ wishes.
Another difference is that community property is divided equally between the spouses, unless a court orders otherwise. In contrast, common law states typically follow the principle of “equitable distribution,” where marital property is divided fairly, but not automatically equally.
These laws mean that Louisiana residents must review their estate plans more frequently than those in other states. An experienced lawyer can help you understand your options and make sure your plan does what you want it to do.
Keeping your estate plan up-to-date is essential, especially when big life events happen or tax laws change. Don’t wait, take action today to secure your future and protect your loved ones.