Making a will is basically a process of matching assets with beneficiaries. These are some basic ideas or steps to follow in planning and drafting a will:
- Identify and list your assets with their values (you all may already have such a list for insurance purposes). Organize the list by category: real estate; stocks and bond, etc; cash on deposit; vehicles; personal property of significant value; insurance; pension and retirement funds; other. Also, organize it by ownership, community, separate, joint tenancy or other.
- Identify and list your possible beneficiaries and any special needs they may have.
- Now, match the assets to beneficiaries considering special needs, if any.
- Finally, select someone to be appointed to administer your estate (Executor), with an alternate selection, if the first choice cannot serve.
Some things to consider as you proceed:
- The amount of life insurance and tax deferred pension plans (IRA, 401K, etc) which provide for a lump sum or other type payment to a named beneficiary or survivor upon your death, are not included in evaluating your estate for state tax purposes in La but are included in your estate value for federal estate tax purposes.
- There is no longer any forced heirship in Louisiana, except for children under age 24 - as long as children are over 24 years old, you can leave as much or as little to each of your children as you want.
- This means that, in Louisiana, the surviving spouse may be given a lifetime usufruct over the entire estate, even any portion that is left to a child or the spouse may given the ownership of the decedent spouse's entire estate outright with nothing being left to children.
- The portion left to the surviving spouse is not subject to tax at that time and will not be taxed until the surviving spouse dies still in possession.
- With bank accounts there are some forms you can fill out with the bank that make the account a joint tenancy account so that the decedent joint owner's portion is automatically transferred at death to the surviving joint tenant without probate proceedings. Ask your banker for forms, if this is of interest.
This is a quick summary of things to consider. Call me with any questions.
