Top 10 Louisiana Estate Planning Questions

You want to protect your loved ones after you’re gone, but you’re not sure where to start. Louisiana's unique civil law system, including community property laws, is complex and makes customized estate planning especially important. But where do you start? This post will answer some of the most frequently asked questions about estate planning in Louisiana, so that you feel ready to consider your next steps.

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1. What is "Estate Planning," and why is it important for everyone?

Most people think estate planning is simply a set of documents, but it’s more than that. It’s also not something only for the wealthy. Estate planning is a personalized plan that considers your unique family dynamic and protects you and your loved ones. Estate planning is more than deciding who gets your possessions. It’s also about addressing any concerns you have – such as protecting assets from creditors, caring for a loved one with special needs, or what happens if you need long term care. A comprehensive estate plan can help make sure that people you trust are in charge of important decisions – both during your life and after your death. It also minimizes potential disputes and, if you want, can help your loved ones avoid the potentially costly and lengthy probate process (known as "succession" in Louisiana).

2. What happens if I die without a valid will in Louisiana?

If you die without a valid will in Louisiana, the court will decide who gets your property in accordance with the state's "intestate succession" laws. These laws decide who inherits your property, prioritizing your surviving blood relatives, and they don’t take your personal wishes into account. Because intestate succession favors blood relatives, it is entirely possible that you may have other loved ones who wouldn’t inherit anything from you in intestate succession, making a will essential.

3. What is a "Will”?

A Last Will and Testament (also known as a "will") is a legal document that details how you want your property distributed after your death and who you want to oversee the legal process. A will can also name a guardian for minor children or include provisions to create a trust upon your death. In Louisiana, a will must follow certain rules to be considered valid and can be thrown out by the court if those rules are not followed.

4. What is "Probate" (Succession) and can it be avoided?

When someone dies in Louisiana, the courts oversee the process of paying final creditors and distributing the deceased person’s property. This is called “probate” in most states but “succession” in Louisiana. This process includes the court recognizing a valid will (if there is one), identifying and appraising assets, paying debts and taxes, and distributing any remaining assets to heirs. Generally, if an estate's value is over $125,000, or if real estate is involved, a formal succession case must be opened in court.

While not all assets require succession (e.g., life insurance policies and retirement accounts with named beneficiaries, or assets held in a revocable living trust), proper estate planning can significantly reduce or even eliminate the need for a lengthy and potentially expensive court-supervised succession process.

5. What is "Community Property," and how does it affect my estate plan?

Louisiana is one of the few "community property" states in our country. This means that most assets and debts acquired by a married couple during their marriage are considered jointly owned, regardless of whose name is on the title. For community property assets, each spouse owns an undivided one-half interest. Separate property includes property owned before marriage, any gifts or inheritances a particular spouse received during the marriage, and property specifically designated as separate in writing at the time it is acquired.

A well-designed estate plan must consider community and separate property. Community property laws may dictate how these assets are distributed upon death, especially when there is no will.

6. What is "Forced Heirship" in Louisiana?

You may have heard the term “forced heirship” but don’t know what it means. Unique to Louisiana, "forced heirship" laws require that a portion of your estate must be left to your children in certain circumstances. Currently, "forced heirs" are:

• Your children (and in certain circumstances, your grandchildren) who are 23 years old or younger when you die.
• Your children (or possibly, grandchildren) of any age who, due to mental incapacity or physical infirmity, are permanently incapable of caring for themselves or managing their affairs.

If you have a forced heir, they’re entitled to a specific percentage of your estate, depending upon the number of forced heirs, which can be as high as 50%. Importantly, Louisiana law prohibits disinheriting forced heirs except in limited circumstances.

7. What are "Powers of Attorney" and why do I need them?

If you become unable to make your own decisions, such as if you’re severely ill, injured, and/or unconscious, powers of attorney (which are called “mandate” in Louisiana) allow you to name someone you trust (your “mandatary” in Louisiana; called your "agent" or "attorney-in-fact" in other states) to make decisions on your behalf. There are two primary types:

• General Mandate (Power of Attorney): Grants your mandatory (“agent”) the authority to manage your financial, legal, and personal affairs, including paying your bills, overseeing your bank accounts, and making investment decisions. If it is a durable general mandate, it remains effective even if you become incapacitated.
• Healthcare Mandate (Power of Attorney): Allows your mandatary (agent) to make medical decisions for you if you are unable to make these decisions, including consenting to or refusing medical treatment.

Without these documents, your loved ones may need to seek assistance from the court to oversee your finances or make medical decisions for you, which can be a costly, slow, and intrusive process.

8. What is a "Living Will"?

A Living Will, also called an Advance Healthcare Directive, is a legal document that details your wishes regarding medical treatment. It allows you to say whether, and under what circumstances, you want life-sustaining treatment or not.

9. What is a "Trust," and when should I consider one?

A trust is a legal document where you (the "settlor" or "grantor") transfer assets to a “trust” (a separate legal entity) that is overseen by a "trustee" (an individual or company). The trustee holds and manages the assets for the benefit of designated "beneficiaries." In certain circumstances, you can be both the settlor and the trustee. Trusts offer several advantages, particularly in Louisiana:

• Avoiding Succession (Probate): When assets are held in a trust, those assets generally avoid the court process of succession, which may mean a faster and private distribution to beneficiaries of the trust.
• Asset Management: Trusts allow someone to manage assets for beneficiaries who are minors, who have special needs, or who can’t otherwise manage an inheritance.
• Privacy: Trusts are managed privately, unlike wills, which become public record during succession.
• Control: When you establish a trust, you can set specific conditions for how and when assets are distributed to beneficiaries. As a quick note, a trust cannot be used to get around forced heirship but can be crafted to account for it.

10. Does Louisiana have an Estate Tax or Inheritance Tax?

No, Louisiana does not impose an estate tax or inheritance tax. Although there is a federal estate tax, you must have considerable assets before it is applied to your estate (currently assets of more than $13.99 million for an individual and more than $27.98 million for couples, set to change on January 1, 2026 in accordance with the OBBB).

Regardless of whether your estate may be subject to federal taxes, a custom estate plan is important for other reasons, such as making sure your chosen heirs inherit your property, and your wishes are honored.

Contact an Experienced Louisiana Estate Planning Lawyer

As you can see, estate planning in Louisiana can be extremely complex and there are many things to be taken into account when creating your plan. Working with an attorney will ensure that you have a comprehensive plan that will fully protect you and your loved ones no matter what circumstances may arise.

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Legal Disclaimer: Your receipt of information from this blog does not create an attorney-client relationship between you and Aspen Estate Planning, LLC. This information is for general educational purposes only and does not constitute legal advice, and it may not reflect current legal developments. Estate planning laws are complex and specific to individual circumstances. It is essential to consult with a Louisiana estate planning attorney to discuss your unique situation and create a plan tailored to your needs.