Delays in probate can mean your assets and property are not available immediately to whoever will receive your estate. If there are people counting on the assets, a delay can make things difficult financially, not to mention make it harder to deal with the sadness of your passing. An estate planning attorney in Metairie, LA, explains ways that you can protect your estate from delays in the probate process.
How Can You Protect Your Estate From Probate Delays?
Create a Revocable Living Trust
An effective way to avoid having parts of your estate go through delays in probate is to set up a revocable living trust. You can transfer assets to a revocable living trust while you are alive. Upon your death, whatever assets are in the trust will pass directly to the beneficiaries you have set without going through probate. Assets such as your home or other real estate can be put in a revocable trust, as well as bank accounts or investments.
While you are alive, you retain control of all assets in the trust. After you pass, a successor trustee will handle the distribution of the assets, according to the terms you have set. Transferring assets to beneficiaries through a revocable living trust can take as little as a few weeks, as opposed to probate, which can be at least six months and sometimes up to a year, especially if there are disputes. Having a revocable trust can make the distribution of your assets much more efficient and can keep things private.
Use Beneficiary Designations
With certain assets, you have the option to name beneficiaries who will receive the funds immediately upon your passing. This is the case with life insurance policies, retirement accounts, such as IRAs and 401(k)s, and bank accounts with payable on death (POD) or transfer on death (TOD) designations. It may also potentially apply to certain investments if there is a way to designate beneficiaries.
These will be considered non-probate assets if there are designated beneficiaries, since they will be able to transfer quickly to the named beneficiaries, bypassing issues of probate. This will avoid delays as long as your designations are current. Check these types of assets frequently to make sure that the designations are up-to-date and still fit with what you want.
Take Advantage of the Small Succession Affidavit Process
If your estate is valued under $125,000, and if there is no will, Louisiana offers a simplified process called a small succession affidavit. (In Louisiana, probate is referred to as the succession process.) This allows heirs to settle the estate without undergoing formal court proceedings and will cut down significantly on the time to handle the estate. However, the small succession affidavit process will work only if all heirs agree and if the estate qualifies for the process.
Look into Joint Ownership of Property
Louisiana does not automatically recognize joint ownership of property for all assets, but it can help with some things. For example, if you own your home jointly with your spouse, it may pass to them without going through probate. Be aware, however, that for homes or other real estate, joint tenancy with rights of survivorship is not recognized in Louisiana. For other assets, you will need to title them carefully to make joint ownership clear.
It would be a good idea to get a lawyer’s help with this, since Louisiana has somewhat unique laws regarding ownership of property. A lawyer can help you understand co-ownership, community property with right of survivorship, and usufruct to make sure ownership is set up correctly and will actually avoid probate after your death.
Plan Ahead for Debts and Taxes
Unresolved claims from creditors can stall probate, as can unfiled tax returns or unpaid taxes. The executor of your estate will have to settle any debts or taxes before any assets are distributed. To help prevent delays, set aside funds specifically to cover your debts and taxes, or carry a life insurance policy and designate the proceeds to go toward covering these liabilities. Of course, the best thing would be to keep up with your debts so they are mostly settled beforehand!
Be aware that in Louisiana, estate taxes are due within nine months of death. Keep this in mind as you plan for the distribution of your assets after your passing. You may be able to reduce the impact of the estate tax by making charitable contributions while you are still alive to people you want to get your money to anyway or to causes near and dear to your heart. Shrinking the size of your estate will mean less is subject to tax and will help to reduce probate delays. Planning well can help you minimize delays from estate taxes.
Draft a Clear, Valid Will
Having a clear, valid will is key to minimizing delays with the succession of your property and assets. In Louisiana, both notarial wills and holographic wills are recognized. A notarial will is a formal document, usually typewritten, which you sign in the presence of at least two witnesses and a notary public. The witnesses must also sign the will, confirming your intent in making the will and your sound mental capacity. The notary will then notarize it. A notarial will is hard to challenge and is more legally secure.
A holographic will is a will that is handwritten by the person and then signed and dated. No witnesses are required, although a court may later require that it be validated by two witnesses, if there is any suspicion of fraud. A handwritten will is simple and cheap, and may be a fine option if you have a small estate and there is a small risk of disputes over your assets. If it is contested, however, there is a risk of it being the source of a delay in probate.
Hire an Estate Planning Attorney in Metairie, LA
It is wise to hire a lawyer to help you with paperwork and arrange your estate to avoid disputes and potential delays within probate. An attorney specializing in probate law will be able to advise you on good options for transferring your assets as smoothly and as quickly as possible after your passing. They will also make sure that you meet any important deadlines for filing paperwork and that all your estate planning is in compliance with state law.
Having an attorney who is familiar with your estate and your intentions in planning its distribution will also help immensely if any issues arise after you pass. If you have any family members who may contest your will or dispute how your assets are distributed, a lawyer who can step in and speak to explain your wishes will be invaluable in helping to avoid delays.
Contact Our Louisiana Estate Planning Law Firm For Help Today
If you are planning for the future or need guidance with wills, trusts, or probate in Metairie, Louisiana, contact the experienced estate planning attorneys at WJ Blanchard Law to schedule a consultation and protect your family’s legacy today.
We proudly serve New Orleans, Jefferson Parish, and the surrounding areas:
WJ Blanchard Law
2800 Veterans Blvd Suite 257
Metairie, LA 70002
Phone: (504) 313-7478
Hours: Mon-Fri 09:00-17:00
Our firm is located near you. We have an office in Metairie
Find us with our GeoCoordinates: 30.0014913,-90.1498979,893
