All About Living Trust Louisiana

Revocable Living Trust All About Living Trust Louisiana

Set-Up a Living Trust Louisiana

Did you know Louisiana is one of the few states that do not charge an inheritance and estate tax? With this, it becomes easier and affordable to set up your living trust and secure your assets for the future. Read the rest of the article to see how you can set up a living trust here in Louisiana instantly. 

Understanding a Living Trust

A living trust is an estate and asset planning document that takes care of your property’s inheritance arrangements while you are alive and after your death.  A living trust is one of the best options to make definite plans for your assets.

Another popular option to estate planning is a will, but it requires you to go through the time-consuming process of probate. Many states have the arrangement to make the probate process easy, but Louisiana is not one of them.

Living Trust vs Will in Louisiana

To better understand the range of benefits a will and a trust offer, here’s a comparison chart:

A will... A trust...
Involves probateDoes not involve probate
Does not guarantee privacyGuarantees privacy
Can be amendedCan be amended (revocable trusts)
Has no provision for minor guardiansHas provision for minor guardians
Requires witnessRequires no witnesses
Needs no notarization processNeed proper notarization process

Types of Living Trusts in Louisiana

In Louisiana, there are two major types of living trusts — revocable living trusts and irrevocable living trusts.

A revocable living trust is a type of living trust that gives you the utmost flexibility and control of your trust throughout the period of your life. With a revocable trust, you can add/remove assets, change beneficiaries, change trustees, and even appoint yourself to oversee your trust. 

Irrevocable trusts do not guarantee flexibility like a revocable trust does. You may not make changes to the trust. The establishment of one relinquishes the grantor’s ownership of the assets in the trust. The trust becomes its own entity, and even gains a separate tax ID. On the upside, an irrevocable trust can prove useful to help prevent nursing home deductions and many other tax implications associated with real estate.

Besides the two main types of trusts, you also have the option of creating a single-person trust or a joint trust with your partner or someone you own assets with. 

Benefits of Creating a Living Trust in Louisiana

For people who live in Louisiana and many parts of the US, there are a few significant advantages to setting up your trust. Some of them are:

Easy process

Opening a living trust in Louisiana is very easy. Once you evaluate your assets and arrange the necessary title changes for transfer, you can complete the rest of the process in record time. At the beginning of the process, you'd need to fill a living trust form. You can get generic living trust templates online or have DoNotPay generate a detailed one specifically tailored to meet your needs.

Probate fees

In Louisiana, most people who opt for a will as their most preferred estate plan will subject their beneficiaries with the probate process — which is a tedious court process — at some point. With living trusts, your beneficiaries do not have to worry about probate.

Estate and inheritance taxes

The third and crucial benefit to setting up a living trust in Louisiana is the ability to avoid estate taxes. The state of Louisiana does not require state estate taxes for properties in a living trust. You’d only have to pay the federal estate tax if the value of your estate is over $5 million. You can also contact a legal professional to explain how you can avoid such taxes.

Privacy

Not everyone wants the transfer of property to become public and living trusts help ensure that. Louisiana allows you to sue anyone who discloses information about your estate arrangement.

How to Get Started on Your Living Trust

If you live in Louisiana, these are some steps you can take to create a living trust:

  • First, choose your beneficiaries
  • Then select your trustee and successor trustee.
  • Make a list of assets to be added to the trust
  • Get a living trust form and fill it out
  • Present your living trust form in court or a public notary for notarization.
  • Complete the transfer of assets process and get a taxpayer ID for your trust

Use DoNotPay to Create a Revocable Trust

You can choose to create a living trust on your own or with a lawyer - but DoNotPay is a better option. Create a revocable trust in minutes without the high fees using DoNotPay by:

  1. Going to the Revocable Living Trust product on DoNotPay
  2. Inputting your desired trustees and beneficiaries
  3. Entering the assets and properties that will go into the trust

After that, DoNotPay will generate a downloadable copy of your living trust. You can edit the final document if you would like. We include both a PDF and DOCX file for you!

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