Estate planning involves determining how an individual’s assets will be preserved, managed, and distributed after death. It also takes into account the lifetime management of an individual’s properties and financial obligations, as well as the management of an individual’s health care in the event of incapacitation. Contrary to what most people believe, this isn’t a tool meant just for the wealthy. Parents and/or grandparents with children and/or grandchildren should have valid estate plans in place.
A basic estate plan includes (1) a General Power of Attorney – Appointing a trusted person as one’s agent in the event of incapacity to manage an individual’s property rights and business affairs, (2) a Medical Power of Attorney – Appointing a trusted person as one’s agent in the event of incapacity to manage an individual’s health care. (3) Living Will Declaration – Proclaiming an individual’s desire not to be kept alive by artificial means when it is determined by the treating physicians that the patient’s condition is terminal and life would be prolonged only by the use of such means), and (4) Last Will and Testament – Instructing how an individual’s estate (property of which the decedent dies possessed of) shall be transferred to specific individuals or other legal entities and how the decedent’s estate shall be managed by a trusted person, known as an executor, during the legal process of the succession of the decedent’s estate to those named as legatees under the decedent’s will.
Without Estate Planning, Louisiana law provides for the management and care of an incapacitated individual’s person and property and how and to whom a decedent’s estate must be managed and transferred. This usually leads to expensive court actions for the appointment of one to care for the incapacitated person or curator, litigation over the management of the decedent’s estate, the appointment of those to care for the decedent’s minor children, if any, and/or the transfer of the estate to the legal heirs, who in some instances are not those to whom the decedent wishes to share in his estate.