Louisiana Trust to Protect From Lawsuits, Nursing Homes, and Child's Future Divorce

Was working with a Baton Rouge family recently who told me that they had three main estate planning concerns.

First, they wanted to make sure that their valuable home would go to their home when they died outside of the Louisiana Succession (or "probate") and they wanted to make sure that the home, or the future proceeds from the sale of the home, would be protected from the son's future divorces - in case he got married and divorced.

Second, they did not want to lose the home in case the husband or the wife entered a nursing home in the future. They were aware of Louisiana's Medicaid Estate Recovery rights which gives the state the authority to force the sale of the home after a Long Term Care Medicaid recipient dies, on order to reimburse Medicaid for the money it spent on the Medicaid recipient's nursing home stay.

And third, they were involved in a funky business matter and they wanted to arrange the home so that if they were sued, that no one could take their home away from them.

There are certain types of irrevocable trusts that can be set up in Louisiana which can help families solve these problems.