Managing assets can become cumbersome during one’s later years. In Louisiana, one option to address this difficulty is to place assets into a trust. A trust is an especially useful tool, as it can be used to:
- Ensure one’s assets are properly managed
- Bypass succession
- More easily pass on inheritances to heirs
Using a revocable trust
A person might choose to place assets into a trust because he or she either no longer wishes to manage them, or is no longer capable of doing so. The person who created the trust — the grantor — would then choose either a successor trustee or a co-trustee. This person would take on all responsibility for managing the assets.
What about powers of attorney?
A power of attorney is a powerful document that can be very useful for certain purposes. However, some institutions are hesitant to do business with powers of attorney and prefer to work with trustees instead. Naming a power of attorney to handle the management of an asset also overlooks the benefit of skipping succession.
When a grantor passes away, his or her estate can bypass probate if all assets are placed in a trust. The trustee in charge would continue managing the assets according to the document’s terms, which often includes how and when to distribute inheritances to heirs. Getting the details of a trust right is important to ensure that everything goes according to plan. Since Louisiana estate planning and elder law can be confusing, it is understandable that some people may want to seek guidance during this process.