Legal Question in Wills and Trusts in Louisiana

Re: Usufruct After Remarriage

Dear Law Guru Friend,

I wrote you a long reply to your question, but it turned out to be too long; and when I went to post it, it got wiped out. Well, I will try again. Your question is a good one, but a little complicated. No doubt the children own half the money held in the C.D.s. If they in fact did tell the father he could have the interest earned on their share of the money even after he remarried, they may want to just let by-gones be by-gones. If they did not make such a promise, there is no doubt that they have a legal right to make the father pay them their interest off their share of the money which was earned after he remarried and the usufruct ended. Also, even if they made such an agreement with him, if they were minors when they made it, in my opinion, it is not binding on them. Also, the bank may have some responsibility to the children for the loss of their share of the interests earned after the usufruct ended, depending on what the bank's responsibility was to have ascertained if and when the usufruct had ended. No doubt that now the children are entitled to their half of the money held in the C.D.s. The new wife has nothing to do with this, as I see it. There is more to it all than this, but this is something to think about. The children need now to go to the bank and get the bank to divide the money; and then the children need to decide what, if anything, they plan to do to recover what interest they have lost. Any income tax owed on the money received as interest on the C.D.s would be and obligation of the one receiving the interest. Now if the children are successful in recovering the lost interest, they would owe income tax on what they are able to recover. The tax situation is another matter that they do not have to worry about until they in fact recover the lost interest. Of course, after this long period of time, there should be no inhereitance taxes due on the children's share of the money. Best of luck to you and the children!

Sincerely,

Hardy Parkerson, Atty.;

Lake Charles

Re: Usufruct After Remarriage

The children have the right to claim their portion. If he was getting 100% of the proceeds, then he should pay 100% of the taxes, but that does not mean that he did. I will need more information to answer more thoroughly.