Posted By
Rebecca Zotti

Living in Louisiana, you probably know that we do things a little differently here, and that includes our laws. Louisiana is one of nine states who use community property laws. Under Louisiana’s community property laws, the default rule is that anything acquired during a marriage is owned 50/50 by the spouses. But, if you brought any property or assets into the marriage or receive an inheritance or gift during the marriage, this is typically your separate property.

A Quick Guide: Classifying Your Assets

To build an estate plan, we categorize what you own.

Property Type

Definition

Typical Examples

Community Property

Assets acquired during your marriage through the effort or salary of either spouse.

Your family home bought after your wedding, 401(k) contributions from work, joint bank accounts.

Separate Property

Assets owned before your marriage or acquired from a personal gift, inheritance, or lawsuit.

A house you owned before your marriage, an inheritance from a grandparent, a personal injury settlement.

The Death Trap: What Happens When You Die Without a Will?

Why is this important? Whether something is community property or separate property determines who inherits it if you don’t have a Will when you die. Louisiana law favors blood relatives, such as children, siblings, or parents, over any other people, and the law outlines which blood relatives inherit first to the exclusion of the others. The default rule under the law could mean that someone inherits your property that you didn’t intend. At Aspen Estate Planning, we help you navigate Louisiana law, so that your loved ones aren't left with a legal mess. Want to learn more about who inherits if you die without a Will? Check out our other post – What Happens If You Die Without a Will in Louisiana?

3 Common Mistakes to Avoid with Community Property:

  • Co-mingling Funds: If you put your "separate" inheritance into a "community" joint checking account, you may have accidentally turned that separate property into community property.
  • Assuming Your Spouse Always Inherits Everything: This is the #1 myth in Louisiana. Without a Will, your children generally inherit before your spouse, and even if you don’t have children, Louisiana law favors your parents or siblings over your spouse for separate property.
  • Ignoring Stepchildren: In the eyes of Louisiana law, stepchildren are not your "heirs" unless they have been legally adopted. Your stepchildren will be left out entirely, unless you have a proper estate plan in place.

Let Aspen Estate Planning Make It Easy

Louisiana law can be confusing, but we’re here to help make sense of it all. At Aspen Estate Planning, we foster a relaxed environment for our clients because we believe estate planning should be a conversation with a trusted advisor, not a chore. This is especially important for blended families and LGBTQ+ families since the "default" rules don't always protect their loved ones, which can cause unnecessary stress and conflict for their loved ones.

Ready to protect what’s yours?

Don't let the State of Louisiana decide for you. Contact Aspen Estate Planning today to schedule your free, initial consultation.