Marie is a mother and a homeowner who lives in Baton Rouge. She already has a will, but she heard from a coworker that a will isn’t enough. After some searching online, she is still confused, but decides she is going to speak with a professional. Let’s look at Marie’s situation a little more closely so we can see if a trust is right for her.
What Is A Trust?
To begin, a trust is a legal tool that holds and manages property for someone else. The person who creates it is the “grantor.” The person who manages it is the “trustee.” The people who benefit from it are the “beneficiaries.”
It helps to think of a trust as a box with rules. The box holds the assets, and the rules say how those assets are used and when they are given out. There are two main types of trusts: revocable and irrevocable.
A revocable trust is one Marie can change. She can add or remove property. She can change the rules. She can even cancel the trust if she wants. This type of trust is also sometimes called a “living trust.”
If Marie sets one up, she can still stay in control. She can serve as her own trustee and manage everything just like she does now. The big difference comes later. When she passes away, the person she chose as trustee steps in and follows her instructions without going through probate court in many cases. This can save time and keep things private.
A revocable trust can also help if Marie becomes sick or unable to manage her affairs. The trustee she picked can step in and handle things for her. This can avoid the need for a court process to appoint someone.
But revocable trusts do have limits. Because Marie still controls the assets, they are usually still counted as her property for things like creditors and long-term care planning.
That is where irrevocable trusts come in.
An irrevocable trust cannot be changed. Once Marie puts assets into it, she cannot take them back or change the rules. This may sound scary, but it has benefits.
In Louisiana, assets placed in a properly structured irrevocable trust are no longer considered owned by the trust maker. This can help protect those assets from certain risks. For example, some people use irrevocable trusts as part of Medicaid planning. If done early enough, it may help protect assets from being spent down on long-term care.
The trade-off is control. Marie would be giving up direct access to those assets. So, does Marie actually need a trust? Well, it depends on her goals.
A will may be enough for someone with a simple estate. But Marie has a home, young children, and a desire to make things easier for her family. A revocable trust could help avoid probate and allow her to set clear rules for her children’s inheritance
If she is also thinking about long-term care or asset protection, an irrevocable trust might be part of the plan, but only if it is set up the right way and at the right time.
Louisiana law has special rules for trusts. They must be written very carefully to work as intended.
A trust is not just for the wealthy. It is a tool. The real goal is to protect the people she loves and to make things as smooth as possible when it matters most.
To lean how Legacy Estate & Elder Law can support your will and trust needs, contact us today.
The information provided is not intended to be legal or tax advice and does not constitute any attorney/client relationship. You should consult with an attorney for individual advice regarding your own situation.
Ms. Melancon is an attorney with Legacy Estate & Elder Law of Louisiana, LLC with offices in Baton Rouge, New Orleans and Lake Charles, LA. The primary focus of her practice is estate planning, probate, special needs planning, and elder law. For more information or to attend an upcoming estate planning seminar, call her office at (225) 744-0027.
