Yes, trusts can avoid probate in Louisiana. By transferring assets into a trust, you can bypass the probate process, which can be lengthy and costly. Assets held in a trust are not considered part of your personal estate and are not subject to probate upon your death.
The cost of creating a trust in Louisiana varies, but a basic Revocable Living Trust generally ranges from $1,000 to $3,000. The cost may be higher for more complex trusts or if you require the assistance of an attorney. Online legal services can offer more affordable alternatives for creating trusts.
A Revocable Living Trust is the most common type of trust and allows you to maintain control over your assets while avoiding probate. Other types of trusts, such as Charitable Trusts or Special Needs Trusts, may be appropriate depending on your specific estate planning goals.
To fund a trust in Louisiana, transfer ownership of your assets into the trust. This involves re-titling real estate, changing account holders for bank accounts, and transferring ownership of personal property, vehicles, stocks, and bonds.
In Louisiana, any individual who is of legal age (18 years old) and mentally competent can serve as a trustee. Additionally, Louisiana law allows for corporations, such as banks or trust companies, to serve as a trustee if they are authorized to exercise trust powers in the state. Trustees must be capable of handling and managing property and they can't have been convicted of serious crimes, including felonies or crimes that involve dishonesty or moral turpitude.
In Louisiana, altering your living trust requires creating an amendment to the initial trust document. The amendment should clearly outline the changes you wish to implement, such as adding or deleting beneficiaries, changing trustees, or modifying the instructions for distribution of assets. Ensure to include the date, your name, the name of the trust, and the date the trust was created. Just like the original trust document, your amendment should be signed in the presence of a notary public. If you have numerous modifications to make to your living trust, you may find it easier to create a restatement of the trust. A restatement allows you to rewrite the entire trust while keeping the original date and title of the trust, which helps to avoid the need to retitle assets. In the restatement, you would include all the changes you want to make and these new provisions will entirely replace the old ones.
