Baton Rouge Trusts Lawyer

Many people think that trusts are only helpful for wealthy people, but even those with more modest means can benefit from them. They might be able to help your loved ones skip or shorten the amount of time your estate spends in probate, resulting in less complicated paperwork and, often, fewer financial complications. Trusts are a powerful tool in estate planning and can help protect your assets from creditors, excess taxes, and more. It can be beneficial to seek out a Baton Rouge trusts lawyer.

An Estate Planning Authority

The Baringer Law Firm, L.L.C., combines detailed estate planning with dedicated tax attorneys who understand the entire financial picture of an estate. We have extensive experience working with individuals from a variety of backgrounds and with different financial situations to develop an estate plan that works for them and their family. Although the Baringer Law Firm, L.L.C., is based in Baton Rouge, we have established credibility throughout the state of Louisiana.

Benefits of a Trust

Trusts offer a quicker and often more convenient way of transferring assets to another person upon the owner’s death. Instead of listing items in a will that must be resolved through probate, a trust can transfer the assets directly. While some lawyers promote the use of a revocable trust (sometimes referred to as a “Living Trust”) to avoid the probate process, The Baringer Law Firm, L.L.C. cautions its clients to take into account that in order for the “living trust” to accomplish its objective of avoiding the need for a probate proceeding on a will, the client must assure that no assets are left outside of the trust.

Our experience has been that many clients have come to us over the years for assistance with Living Trusts after the death of a parent, only to find out that despite having paid substantial legal fees for the Living Trust to “avoid probate,” they must go through the probate process because the decedent owned shares of stock, an automobile, or immovable property that were overlooked never transferred to the “Living Trust.”

Placing assets in a trust can result in a more private transfer process since most trusts are not recorded in the public record. This can be helpful if the owner of the assets knows of individuals who might attempt to contest or challenge items in a will. Certain conditions can be added to trusts to make sure the recipients use the money and assets included wisely. In certain cases, trusts can reduce the amount of taxes that must be paid on the assets when compared to including them in a will.

Other types of trusts can help make sure your financial matters are taken care of if you are unable to do so while you are still living. If you lose the capacity or ability to manage your estate during your lifetime, a trust can determine how it will be managed until and after your death. While a trust cannot give someone the power to make medical decisions for you, it can give you peace of mind knowing that your finances are taken care of.

Types of Trusts

Before starting the creation process, it is important to understand how revocable trusts and irrevocable trusts can differ. A revocable trust can be changed at any time after it is created, or trustors can even revoke the trust entirely. This can allow for greater flexibility and control over one’s assets. An irrevocable trust takes the assets out of the creator’s hands.

This definition makes irrevocable trusts sound pointless, but removing assets from your control can offer certain financial and tax benefits. For example, holding assets in an irrevocable trust might limit the amount of taxes that must be paid on the estates. In addition, if a creditor wants to recover debts after your death, they might not be able to claim assets in an irrevocable trust as they could if the assets were placed in a revocable trust.

Why Do I Need an Attorney?

Although trusts can be a valuable part of many estate plans, they can be difficult to establish. Much like a will, a trust in Louisiana must be executed in a certain form and in accordance with a certain process. A trust in Louisiana can only be created by an authentic act, which is an act executed before a notary and two witnesses.

Unlike a will, which usually does not require extensive regular upkeep, a trust requires more documentation and maintenance, which can be overwhelming. Trusts can also incur additional taxes if they are initiated without considering the financial implications. This is why it is so important to work with an attorney who knows both estate planning and tax law to help with your trust.

FAQs

Does a Trust Avoid Probate in Louisiana?

A trust allows certain assets to skip probate in Louisiana. Simply creating a will is not sufficient to bypass probate. Trusts are especially helpful for houses and other real estate, assets from the stock market, and other financial accounts. Certain assets are already exempt from probate, even without a trust, such as retirement accounts. When using a revocable trust for the purpose of avoiding the probate process, one must be sure to transfer all assets into the trust upon formation of it; and all future acquisitions of assets must be acquired through the trust. For more information on how a trust can help in your estate plan, contact a trust attorney.

In Which Situations Does a Trust Make Sense?

It can make sense to create a trust while a person is still living to avoid a complicated probate process after their death. This can save the executor of the estate both time and money. Assets held within a trust are also not public record (except for real property which is subject to recording in the public records) and are administered more privately than assets held in wills. While there are many benefits to a trust, the paperwork to establish one can be complicated. To make sure your trust is set up correctly, an estate planning attorney’s help is crucial.

How Do I Set Up a Trust Fund in Louisiana?

To set up a trust fund in Louisiana, the first thing to determine is what type of trust you would like to set up. There are several different types of trusts that all offer different benefits. The next step is to evaluate which resources you want to place in the trust fund. You can place things like cash, property, and other assets like stocks and bonds in a trust. After the assets are chosen, trustees must be selected to dole out the assets to the beneficiaries appointed in the trust documentation.

What Are the Disadvantages of a Trust?

One disadvantage of a trust is that trusts can be more expensive to set up than other forms of estate planning documents, like wills. It is also critical to create a will in addition to a trust , to cover those situations where one overlooks transferring certain assets to the trust prior to death. Trusts can be difficult to maintain and often require more documentation and upkeep than a will.

Make Sure Your Assets Are Held Efficiently

Trusts can be incredibly helpful in the estate planning process, but they are beholden to strict legal requirements. It is important to create a trust correctly so that your wishes can be carried out in a timely and cost-effective manner. To learn more about how to create a trust in a way that benefits your estate plan and your loved ones, schedule a consultation with The Baringer Law Firm, L.L.C., today.