Share

Many & LoCoco Legal Blog

Tuesday, May 4, 2021

Issues to Consider when Gifting to Grandchildren


Many grandparents who are financially stable love the idea of making gifts to their grandchildren. However, they are usually not aware of the many issues related to what many consider to be a simple gift. If you are considering making a significant gift to a grandchild, you should consult with a qualified attorney to guide you through the legal and tax issues that are involved.

Making a Lifetime Gift or a Bequest:  Before making a gift, you should consider whether you want to make the gift during your lifetime or leave the gift in your will. If you make the gift as a bequest in your will, you will not experience the joy of seeing your grandchild’s appreciation and use of the gift.
Read more . . .


Thursday, January 7, 2021

TOP FIVE ESTATE PLANNING MISTAKES

In spite of the vast amount of information that is currently available in the media and via the internet, many people still underestimate the importance of having an estate plan. Here's a look at the top five estate planning mistakes that need to be avoided.

1. Not Having an Estate Plan

The most common mistake is not having an estate plan, particularly not creating a will - as many as 64 percent of Americans don't have a will. This basic estate planning tool establishes how an individual's assets will be distributed upon death, and who will receive them. A will is especially important for parents with minor children in that it allows a tutor to be named to care for them if both parents were to die unexpectedly. Without a will, the courts will make decisions according to the Louisiana probate laws, which may not agree with a person's wishes.

2. Failing to Update a Will

For those who have a will in place, a common mistake is to tuck it away in a drawer and be done with it. Creating a will is not a "once and done" matter as it needs to updated periodically, however. There are changes that occur during a person's lifetime, such as buying a home, getting married, having children, getting divorced - and remarried, that need to be accurately reflected in an updated will. Depending on the circumstances, a will should be reviewed every year.

3. Not Planning for Disability

While no one likes to think about becoming ill or getting injured, an unexpected long-term disability can have devastating consequences on an individual's financial and personal affairs. It is essential to create a durable power of attorney to designate an individual to manage your finances if you are unable to do so. In addition, a power of attorney for healthcare  - or healthcare proxy, allows you to name a trusted relative or friend to make decisions about the type of care you prefer to receive when you cannot speak for yourself.

4. Providing for Incapable Heirs

People often take for granted that their loved ones are capable of managing an inheritance. There are cases, however, when a beneficiary may not understand financial matters or be irresponsible with money. In these situations, a will can appoint an professional to supervise these assets, or in the alternative a "spendthrift trust" can be put in place.

5. Choosing the Wrong Executor

Many individuals designate a close relative or trusted friend to act as executor, but fail to consider whether he or she has the capacity and integrity to take on this role. By choosing the wrong executor, your will could be contested, leading to unnecessary delays, costs and lingering acrimony among surviving family members.

The Takeaway

In the end, estate planning is really about getting your affairs in order. By having an estate plan in place, you can avoid these common mistakes, protect your assets and provide for your loved ones.

Chip LoCoco

Attorney at Law

(504) 483-2332

 

 


Monday, November 30, 2020

Costs Associated with dying without a will.


When someone dies without a will, it is known as dying intestate.  In such cases, the Louisiana legislature has set forth the law that governs how the person's estate is administered. For people who leave behind large estates, unless they have established trusts or other tax avoidance protections, there may be a tremendous tax liability, including both estate and inheritance tax.

For just about everyone, the cost of having a will prepared by a skilled and knowledgeable attorney is negligible when compared to the cost of dying intestate,  since there are a number of serious consequences involved in dying without a proper will in place.

Legal Consequences

The larger your estate, the more catastrophic the consequences of dying intestate will be. If you die without a will, the freedom to decide how your property will be divided will be taken from you and the state in which you reside will divide your assets.

Not only will you not be able to decide on the distribution of your property, but a stranger will be making personal, familial decisions. This may be divisive among your family members; instead of leaving your loved ones in peace, you may leave them engaged in bitter disputes over a family heirloom or even a simple memento. This can be especially true in situations where there are children from a previous marriage.

Tax Consequences

In addition to the legal and personal problems associated with dying intestate, the tax results can be severe as well. This is particularly true for clients who have not consulted with an estate planning attorney in order to protect themselves through tax avoidance methods. Both the state and federal governments can tax the transfer of property and an inheritance tax may be imposed on the property you have left to your heirs.

The most effective way to avoid all of these negative tax consequences is to create a will with a competent attorney. Your lawyer will help you to choose a proper executor (the person who will administer your estate, distribute your property and pay your debts), and will assist you in finding ways to limit your tax liability. There are several ways your attorney can help you to do this:

  • By gifting some of those you want to inherit before you die
  • By creating one or several trusts
  • By purchasing a life insurance policy
  • By buying investments in your loved one's name

These methods will ensure that your loved ones receive the assets you desire them to have, while simultaneously protecting them from possibly enormous tax burdens after you pass.

For those who have no family, dying without a will can be even more troublesome and costly, since their entire fortunes can be left to the state. If a genealogical search doesn't turn up any blood relatives, all of your assets will be claimed by the government. This means that any individual, group, organization or charity you wished to endow will receive nothing.

It is never easy to think of one's own mortality, but it is even more painful to contemplate leaving a messy, uncomfortable situation behind when you pass. By engaging the services of an excellent estate planning attorney, who will help you fashion a legally binding, precisely designed document,  you can make sure that your loved ones are well taken care of and that your final wishes are respected and implemented.

Chip LoCoco

Attorney at Law

 


Monday, November 9, 2020

How long is the Probate Process?


As an estate attorney, I am often asked how long does the probate procedure take. Simple question right. But the answer is not that simple, as the length of time it takes to distribute assets in an estate can vary widely depending upon the facts and the type of issues that are being handled in each individual matter. 

So, what type of factors come into play which can determine the length of time that an estate will remain open. Some of the factors that will be involved in determining how long it takes to fully administer an estate include:

  1. Whether the estate must be probated with the court.
    Read more . . .


Tuesday, August 11, 2020

A Brief Introduction to End of Life Legal Planning

While being one of the most important aspects of your later stages in life, end of life legal planning is often the hardest to deal with. The issue is a mix of emotions, finance, and law – a combination that will bring anxiety to anyone. Nonetheless, being prepared for the unexpected, and eventually the expected, is exceptionally important. End of life legal planning can be split into two primary categories: healthcare and financial. 

 

Healthcare Planning

Everyone will have an opinion on what is the best medical decision to make should something happen to you. There are three primary healthcare documents that can ensure your intentions are known and carried out.

  1. Living Wil – A living will is a legal binding document that identifies your preferences and wishes with regard to healthcare services. It gives you a voice in the decision-making process should you become incapacitated. Your document provides which types of treatment you do and do not want, regarding end of life care. 
  2. Power of Attorney for Healthcare – a power of attorney for healthcare grants another person of your choice the authority to make healthcare decisions on your behalf if you become incapacitated. The power of attorney for healthcare can be used in conjunction with a living will, with certain decisions being binding under the living will and other decisions being left up to the person appointed in your power of attorney.

Financial Planning

In addition to the three above healthcare related documents, there are two finance-specific documents that should be considered.

  1. Durable Financial Power of Attorney – like the power of attorney for healthcare, the durable financial power of attorney allows you to grant another person the authority to act on your behalf. Here, the selected person can manage your finances to the extent you grant such power. Examples of management include filing your taxes, managing your real estate and other investments, buying insurance, and managing retirement benefits.
  2. Will – The document which allows you to direct to whom your assets go to upon your death. You can provide protections for your spouse, your children, and can create special needs trusts for children who would benefit with such a trust. You can also name the executor, the person who will handle your affairs when you pass away, and you can give them Independent powers which an save thousands of dollars for an estate.

These are the two primary categories when considering end of life planning, but there are many things to explore in all of them that an experienced estate planning attorney can assist you with in tailoring an estate plan for your families' needs. 

Chip LoCoco

Many & LoCoco

Attorneys at Law

504-483-2332


Monday, May 4, 2020

The Law of Usufruct in Louisiana. What is it?


When a person owns property in full ownership, all three principals of ownership rest in that person. Those principals are: 1) They have the right of possession; 2) the income derived from it 3) and the right to sell, lease, mortgage or otherwise transfer the property. Property in this context means any asset, not only real estate. 

In Louisiana, a person can grant the right of usufruct over any type of property. When this is done, then the rights of full ownership are split into usufruct and naked ownership, with the three principals of ownership being divided among them

The usufructuary is the person who owns the usufruct.


Read more . . .


Thursday, April 9, 2020

Living Wills, Healthcare Powers of Attorney, and DNRs Explained


With everything going in the world today, you will hear people speaking about three types of documents that you may be unfamiliar with or you or not exactly sure what they are and what they do. These three documents are:

 

  1. Living Will or also called an Advance Medical Directive.

  2. A Medical Power of Attorney or sometimes called a Healthcare Proxy.

  3. A DNR – Do not resuscitate order.

 

In this brief article, we will look at each of these in a little depth.


Read more . . .


Wednesday, April 8, 2020

Why Louisiana has Parishes Instead of Counties?


After watching a national news reporter consistently use Orleans County for days in a row, I decided to shed some light on why New Orleans has parishes instead of counties. By the way, the only State besides Louisiana not to have counties is Alaska, which has "boroughs".

The reason why Louisiana does not use the term counties dates back to a bygone era and to the first settlements in this State. Louisiana was officially Roman Catholic under the rule of both France and Spain. The initial boundaries dividing the territories of what is now Louisiana generally coincided with church parishes.


Read more . . .


Tuesday, March 31, 2020

Remote Notarizations

Please be aware that - although with the emergency declaration by the Governor of Louisiana which allows for certain Notarial acts to be done electronically under specific guidelines - the declaration by the Governor DOES NOT APPLY to Wills and Trusts and other legal documents which require witnesses and the Notary to all be in the physical presence of the signor. So, if a lawyer sends you a copy of your Will and/or Power of Attorney and says to sign it and email or mail it back to him/her, IT IS NOT LEGALLY VALID, as it was not signed in the presence of the Notary and witnesses. As you know, Louisiana has very specific rules regarding notarial Wills and authentic acts which requirements still need to be met even while in the midst of a pandemic.

Chip LoCoco
New Orleans Estate Planning Attorney


Read more . . .


Saturday, March 28, 2020

The Stimulus Passed. Now Beware of IRS Scam Phone Calls.


With the passing of the stimulus bill, please, particularly for your parents and grandparents, be aware of IRS scam calls asking you to provide banking information so you can receive your stimulus check. Please remind your loved ones that the IRS rarely calls individual taxpayers, and when they do, it's usually well after the taxpayer has received written notice of whatever issue the taxpayer is handling. You should treat any phone call out of the blue from someone claiming to be from the IRS as a SCAM, and provide no information to them. If you would like to confirm with the IRS that there is no issue, you can call the IRS directly at 1.800.
Read more . . .


← Newer12 3 4 5 6 7 8 9 Older →

Blog Categories

Estate Planning

Real Estate

Archived Posts

2021
2020
2019
2018
2017
2016
2015
2014
2013
2012


The Attorneys of Many & LoCoco assist clients throughout parts of Southern Louisiana, including but not limited to New Orleans, Metairie, Mandeville, Convington, Gretna, Arabi, Marrero, Westwego, Harvey, Chalmette, Kenner, and the Parishes of Orleans, Jefferson, St. Tammany, and St. Bernard, LA.



© 2021 Many & LoCoco | Disclaimer
4833 Conti Street, Suite 109, New Orleans, LA 70119
| Phone: 504-483-2332

Estate Planning | Estate Planning for High Net Worth Individuals | Interdictions | Probate & Estate Administration | Estate Planning for Parents with Minor Children | Special Needs Planning | Business Succession Planning | Powers of Attorney and Advance Medical Directives | Elder Law | ESTATE TAXES | Our Firm | Publications

Attorney Website Design by
Zola Creative