When is a Succession Necessary?
Many people ask me whether they are required to file a succession or probate proceeding in Louisiana when a loved one dies. If your loved one owned any real estate, the answer is yes. When someone dies, a succession proceding is needed to transfer title of that person’s assets to his or her heirs. As part of the succession process, the debts of the decedent are paid out of any assets held by the decedent upon death, and anything left over is distributed to the heirs. In addition, a Louisiana inheritance tax return is filed for the estate. If the succession is filed withing 9 months of death, no Louisiana inheritance tax will be owed.
If the estate has enough cash to pay all the debts and expenses of the decedent and there are no disputes among the heirs, a simple succession procedure is used to place the heirs in possession of the property. However, if issues arise as to validity of a will, forced heirship, or if the succession is insolvent, a more complex succession with administration will be required.
Suze Orman’s New Book Stresses the Importance of Estate Planning
I just picked up Suze Orman’s new book, Women & Money, and I am pleased to report she devotes an entire chapter to the importance of estate planning. She recommends that at all women, whether single or married, and regardless of how large their estates, do the following:
- Create a revocable living trust
- Transfer all assets to the trust and appoint themselves as trustee
- Create a back-up pour over will to handle anything that does not get transferred to the trust
- Choose an appropriate guardian for their minor children
- Choose an appropriate executor to settle their estate
- Create an advance directive or living will to spell out their wishes with respect to health care
- Create a durable power of attorney for health care that will appoint an agent to speak on their behalf to doctors regarding their health care needs
- Designate beneficiaries for all of their assets, including IRAs, 401(k) accounts and life insurance policies
- Review your entire estate plan and beneficiary designations annually
No surprises here. Her list is in agreement with what I recommend to my clients. The only point on which my recommendations differ, is that I tend to prefer wills in states where probate is inexpensive, such as Louisiana, especially for younger women.
Overall, the book is a great resource for women, particularly those who have not paid much attention to financial matters in the past. Also, check out the special deal she has with TD Ameritrade, which will give you $100 if you set up an automatic investment account with them for 12 months with monthly deposits of at least $50 per month. Go to www.saveyourselfplan.com for more information.
Prenuptial Agreements
The use of prenuptial agreements in the United States is still the exception, not the rule. It is rare to see a prenuptial agreement in first marriage situations, but they are common in second or third marriages. Many people would say that if you don
What is a Durable Power of Attorney?
The Durable Power of Attorney is a document that allows you to appoint an agent to act on your behalf, during your life, with respect to your property and financial decisions. If your intent is for your agent to be able to act for you if you become disabled or incapacitated, you will want to make sure the power of attorney specifically states that you intend it to continue in force should you become disabled. When you sign a durable power of attorney, you have two options. You can make it effective immediately or you can make it effective only if and when you are determined to be incapacitated. In my practice, I recommend that the power of attorney be effective immediately, to avoid any uncertainty in determining incapacity. This is a valuable estate planning tool, but you can If you are not sure if you need to look at your estate plan, the following quiz will help you determine if it’s time to call your attorney for an update, or to set up a new plan. Click Here for a simple quiz to figure out when it’s time to update your estate plan.Estate Planning Quiz