Forced Heirship

Couple From Alexandria, Louisiana Has Estate Plan To Protect Youngest Child

I've been working on an estate legal program for a couple from central Louisiana. It's a "his, hers, and ours" scenario. The wife has several children from prior marriages. The husband has one child of his own. After they married, they had another child.  They mentioned several times that they were not very close with the older children, and that many of the older children had a larger estate than this couple had.

Their main concern was for their youngest child - that they had together. The wife was concerned that they may be forced to leave an inheritance to the older children due to Louisiana's forced heirship laws, but we discussed that since the older children were older than 23 years of age, she was not forced to leave the older children an inheritance. They realized that the youngest child was a forced heir, but the fact that the youngest child was a forced heir was not an issue because they would leave the bulk of their estate for the benefit of this youngest child.

They wanted an arrangement where the surviving spouse would completely control everything. But after both the husband and the wife pass away, they want their estate to be for the benefit of their youngest child. This child, a daughter, while responsible, would not be prepared to inherit an estate in a lump sum. But the couple had no family member or no one else that they could "trust" enough to be the Trustee of their daughter's trust after the couple passes.

After discussing the pros and cons of naming a corporate trustee to handle things for the young child (if the child happens to still be young when the couple dies). They selected the trust department of one of the national banks that they use to be the trustee.

Now the couple knows that if they pass away before their child completes all of her graduate and post-graduate education, then their estate will be managed by professionals and used for the right reasons until the child is an adult and has the maturity to handle the inheritance prudently.

The couple now knows that they have taken the necessary legal action to set up an estate legal program to protect the surviving of them from children or other who may want to cause a fuss, and they've provided for the financial well-being of their child who will need a head start on life if her elderly parents pass away unexpectedly in the next several years.

Married Couple Doesn't Want Surviving Spouse To Have To Get Children's Permission To Sell The Home

I met with a couple yesterday from Assumption Parish. They had children that were young adults but the children were still forced heirs. Their number one goal was to make legal and financial and estate matters simple for the surviving spouse after the first spouse dies. They do not want to have to get permission from the children if the surviving spouse wants to sell the house, a vehicle, or stock that they own.

They realized that if they put no legal plan in place, then when one spouse died, the surviving spouse would be at the mercy of the children if the surviving spouse wanted to sell the home or other assets they had.

We put a plan in place so that when one spouse dies, the surviving spouse can continue to control everything - the children do not need to be involved at that point - and the surviving spouse will remain in control of everything. Yet, the children's forced heirship rights will be protected in compliance with the Louisiana forced heirship laws.

One of the big reasons married couples put an estate legal plan in place is to make things simple for their surviving spouse. If you want to do the same for your spouse, simple email me at paul@rabalaisestateplanning.com, and tell me a little about your circumstances and what your estate goals are. Then, if appropriate, we'll all get together to chat about what an estate legal program might look like.

Louisiana Couple With Young Adult Children Can't Leave Everything To Each Other

I met with a middle-aged couple yesterday from Prairieville. They wanted to get their legal affiars in order. They said that getting their legal affairs in order had been on their "to-do list" for a few years, and they were glad they were now getting it taken care of.

They were wanting to keep things as simple for themselves as possible. They indicated that they each wanted Wills leaving everything to the surviving spouse, and then after both spouses died, they wanted everything to go equally to their three adult children, who were 18, 19. and 21.

I let them know that, at least for now, they could not leave everything to each other. Since they still had children who were forced heirs (age 23 or younger), they are forced by Louisiana law to leave their children an inheritance.

I told them they could satisfy these forced heirship rules by leaving their surviving spouse the usufruct of their estate, and naming the three children as the naked owners. Under this scenario, protections would be in place after the first spouse dies to ensure that when the surviving spouse dies, the children of the first spouse to die will receive the inheritance from the first spouse to die.

Example. Mom dies and leaves the usufruct of her estate to Dad, and Mom's Will lists the three children as the naked owners. Mom dies. Years later, Dad remarries New Wife and changes his Will so that his estate goes to New Wife. Since Mom left the usufruct of her estate to Dad and names Mom's children as the naked owners, then when Dad later dies, Mom's estate must go to the children before any of Dad's estate can go to New Wife.

I've written quite a bit more about this in my book, "Estate Planning in Louisiana, A Layman's Guide," but if you have children who are 23 or younger, realize you will not be permitted to leave your estate entirely, in outright ownership, to your spouse. You must satisfy the Louisiana forced heirship rules.