For some Louisiana adults, drafting a will is sufficient for their estate planning needs. This document allows them to decide what will happen to their assets after they pass, plan for the care of a beloved pet and even name a guardian for any minor children. However, there are limits to what these documents can do, and for this reason, it may be beneficial to consider a revocable living trust.
This type of trust is set up during a person’s lifetime. Because it is revocable, it allows the grantor to remove assets from the trust and change the terms over the time. After the grantor passes away, the trust becomes irrevocable. One benefit of using this type of trust to set aside assets is that the terms of the trust will determine what happens to these assets in the event the grantor becomes incapacitated.
Another benefit of using this type of trust is that it can help avoid probate, and a trust is private, making it easier to protect the interests of beneficiaries. One drawback of this specific type of trust is that it will not necessarily shield someone from estate taxes or gift taxes. Whoever the beneficiaries are at the time of the grantor’s death will be the only individuals eligible to receive assets from the trust.
A revocable living trust is only one of the many tools available to those in Louisiana who have specific financial objectives for their estate plans. An assessment of the individual case by a knowledgeable legal professional can determine if a trust is necessary. With the right plans in place, it will secure the long-term interests of beneficiaries and loved ones.