Guide to Filling a Louisiana Revocable Living Trust Form
If you're looking for the best estate planning option, you may wonder if a Louisiana revocable living trust is suitable. This trust is a type of estate planning tool that can be used to manage your assets during your lifetime and after your death. Read on to understand everything about revocable living trust in Louisiana.
What Does a Revocable Living Trust Entail?
A revocable living trust is created during the settlor's lifetime (the person who creates the trust). The settlor can revoke or terminate the trust anytime during their lifetime. However, upon the settlor's death, the trust becomes irrevocable, and assets are distributed to beneficiaries according to the terms of the trust.
Benefits of a Revocable Living Trust in Louisiana
There are many benefits of setting up a revocable living trust. First, it allows you to manage your assets during your lifetime. If you become incapacitated, the trustee (the person who manages the trust) can step in and manage the trust on your behalf. This can help to avoid a lengthy and expensive court process.
Another benefit of a revocable living trust is that it can help to avoid probate. Probate is the legal process through which a person's estate is settled after death. It can be a lengthy and expensive process. By setting up a revocable living trust, you can ensure that your assets will be distributed according to your wishes without going through probate.
Finally, a revocable living trust can provide privacy for your family after your death. Unlike a will, which is a public document, a revocable living trust is private. This can help to avoid estate disputes and keep your family's affairs confidential.
How Do You Create a Revocable Living Trust?
Creating a revocable living trust in Louisiana is a relatively simple process. First, you need to choose a trustee. This can be a family member, friend, or professional fiduciary. You may also select yourself as the trustee.
Choose a successor trustee. This person will take over as a trustee if you cannot serve in that role.
Next, you need to identify which assets you want to place in the trust. Then, you will need to re-title these assets in the name of the trust. For example, if you own a house, you must change the deed to reflect that the trust now owns the place.
You will also need to create a trust agreement. This document outlines the terms of the trust and names the beneficiaries. Sign the document before a notary public. Finally, fund the trust by transferring assets into it.
Do You Need a Will If You Have a Revocable Living Trust?
A will is recommended because there may be assets not titled in the name of the trust. These assets will be distributed according to Louisiana's intestacy laws if you die without a will. For example, you may need to remember to change the deed on your house.
The court will appoint a guardian for your children if you die without a will. A will also name guardians for minor children.
Who Needs a Louisiana Revocable Living Trust?
A Louisiana revocable living trust is a good estate planning tool for anyone who wants to manage their assets during their lifetime and after death. Unfortunately, Louisiana has not adopted the Uniform Probate Code, complicating the probate process. A living trust comes in handy to avoid this.
Does a Living Trust Reduce Estate Taxes?
No, a living trust does not reduce estate taxes. In Louisiana, there is no inheritance tax or estate tax. The federal estate taxes are only imposed on estates valued worth $11.18 million. If your assets exceed this threshold, an AB trust can be created to help minimize estate taxes.
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