It can be confusing to develop a solid estate plan that ensures your family is taken care of when you are no longer here to provide for them. When a person dies, even with a will, the estate often must go through probate under Louisiana law. This process can be drawn out and difficult for families, not only emotionally but also financially, because the distribution of assets and property to heirs is on hold until probate is completed. This can be even more complicated if the decedent owned additional property in another state since that property will now have to go through ancillary probate under that state’s laws. However, there are ways to avoid the probate process, no matter what state you live in. Our Alexandria, LA ancillary probate lawyer can help.
One of the best estate planning options individuals can use is a trust. At Theus Law Offices, we can explain the different types of trusts and how each may or may not benefit your particular situation. The following is an overview of how trusts work.
Parties in a Trust
When you form a trust, three parties are involved. They are:
- The grantor: The party giving the property.
- The trustee: The party that oversees the property in the trust.
- The beneficiary: The party for whom the trust is created.
A living trust is similar to a will; however, unlike a will, a living trust does not go through probate. When the person who established the trust dies, the trust property immediately passes to the beneficiary. There is no waiting period, unlike in the probate process.
The grantor has several options for setting up the trust. The beneficiary may receive control of the trust property immediately, or the grantor may set stipulations governing when the property can be accessed from the trust and who has oversight or control over the trust.
The grantor also has the option of setting up the trust as revocable or irrevocable. A revocable trust can be changed or canceled at any time by the grantor. An irrevocable trust cannot be changed once established. Your Alexandria, LA ancillary probate lawyer can explain which option is best for your situation.
Trustee Powers
If the grantor decides to appoint a trustee to oversee the trust for the beneficiary, the trustee has certain powers under the law. These may include:
- Sell or negotiate property held in the trust
- Enter leasing agreements (such as in rental properties)
- Mortgage any property held in the trust
- Sell or purchase stocks, bonds, or other securities of the trust
- Execute contracts or other binding instruments
- Make improvements to trust real estate
- Grant easements on trust property
- Pay taxes and other financial obligations on trust property
- Retain the services of attorneys, accountants, or other advisors for the benefit of the trust
Trusts are just one part of estate planning, but they are important if you own property. To learn more, call Theus Law Offices to speak with our skilled Alexandria, LA ancillary probate lawyer.
