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Many Louisiana estates must go through succession, which is commonly called probate in other states. A succession establishes who inherits the decedent’s property, addresses estate obligations, and provides the documentation needed to transfer assets titled in the decedent’s name.
A valid will does not ordinarily avoid succession. The will directs how property should be distributed, but a court proceeding may still be necessary to recognize the will and place the proper successors into possession.
Some estates qualify for a small-succession procedure that may avoid a judicial succession. Effective August 1, 2026, Louisiana Act 293 increases the general small-succession threshold from $125,000 to $200,000 in gross value as of the date of death. Value is not the only requirement, however, and not every estate below the threshold qualifies for an affidavit. Our discussion of Louisiana’s $200,000 small-succession threshold explains the change in greater detail.
For families who want to plan ahead, a properly created and funded trust may keep certain property outside the succession process entirely.
How Do Trusts Help Avoid Succession?
An inter vivos trust is created during the settlor’s lifetime. Property transferred to the trust is administered by a trustee according to the trust instrument.
When the settlor dies, properly funded trust property does not have to be inherited from the settlor through a succession because title is already held in trust. The trustee or successor trustee can continue administering the property and make distributions according to the trust’s terms.
This can reduce court involvement, preserve more privacy, and provide a more orderly transition after death. A trust may also provide continuity if the settlor becomes unable to manage financial affairs during life.
Our more detailed article on avoiding probate with a Louisiana trust discusses these benefits and how Field Law approaches probate-avoidance planning.
A Trust Must Be Properly Funded
Signing a trust document is only the first step. The trust avoids succession only for property that has been properly transferred to it or otherwise arranged to pass according to the plan.
Depending on the asset, funding may involve:
- Executing and recording documents that transfer Louisiana real estate to the trust
- Retitling appropriate checking, savings, or nonretirement investment accounts
- Transferring business or LLC interests when permitted by the governing documents
- Updating ownership records for vehicles or other titled property
- Coordinating beneficiary designations with the overall estate plan
Louisiana law includes specific recordation requirements when trust property includes immovable property or other property whose title must be recorded. See Louisiana Revised Statutes 9:2092.
If property remains titled solely in the settlor’s individual name without an effective beneficiary designation or other transfer mechanism, that property may still require succession. A pour-over will can direct remaining assets into the trust at death, but those assets generally must pass through succession before reaching the trust.
Retirement Accounts Require Different Planning
Retirement accounts should not ordinarily be described as assets that can simply be retitled into a living trust during the owner’s lifetime. Accounts such as IRAs and employer-sponsored retirement plans are governed by tax rules, plan documents, and beneficiary designations.
The account owner will generally keep the retirement account in the owner’s individual name and coordinate the primary and contingent beneficiary designations with the estate plan. A trust may sometimes be named as a beneficiary, but that decision requires careful legal and tax review because it can affect required distributions and taxation.
Life insurance and other beneficiary-designated assets also require separate review. These assets may pass outside succession when a valid beneficiary survives the owner, but the designations must be coordinated with the trust and the rest of the estate plan.
Which Property May Be Appropriate for a Trust?
A home, rental property, nonretirement financial accounts, business interests, and valuable personal property may be appropriate for a trust. The right approach depends on ownership, family circumstances, creditor concerns, tax consequences, and the purpose of the plan.
Jointly owned property also requires careful review. Joint ownership does not always mean the surviving owner automatically receives the decedent’s interest under Louisiana law. The title documents and applicable succession rules must be examined before assuming that an asset will avoid court.
Not every family needs a trust, and not every asset should be transferred to one. Our comparison of wills and trusts in Louisiana explains some of the factors that may affect the choice.
Advanced Planning Can Reduce Costs and Delays
Judicial succession may involve court costs, attorney fees, delays, and public filings. A properly funded trust can reduce or eliminate those expenses for the assets it holds and may make it easier for the trustee to manage property after the settlor’s death or incapacity.
Trust planning can be especially helpful for someone who:
- Owns Louisiana real estate
- Owns property in more than one state
- Wants greater privacy
- Wants continued management for young or vulnerable beneficiaries
- Is concerned about incapacity
- Wants to reduce the likelihood of multiple succession proceedings
The benefits depend on proper drafting, funding, and ongoing coordination. A trust that is never funded may offer little practical help when the settlor dies.
Field Law Can Help
Field Law can help you determine whether a trust fits your estate-planning goals, identify which assets should be transferred, prepare the necessary documents, and coordinate the trust with your will and beneficiary designations. Contact Field Law to schedule a consultation about avoiding or simplifying a future Louisiana succession.
