Legal Question in Wills and Trusts in Louisiana

Re: Will or Property Transfer?

Dear LawGuru Friend,

I am sure Andrew is a great lawyer; but he is an Oregon Lawyer, not a Louisiana lawyer. We do not hvae life estates in Louisiana. We do have what is called a "usufruct" and that can be made for a lifetime; and what that means is that your dad would give the property to you and reserve for himself a life-time "usufruct" that would give him the right to live in and upon it for the remainder of his natural life and to enjoy the fruits (from plumbs and apples and pears oil royalties and rents) therefrom during his lifetiime. You would be what is called in Louisiana the "naked owner". There is more to it all than this, but this, as well as what the other lawyers have told you, is something to consider. Of course, any gifts may be subject to a federal and/or state tax on inter-vivos (between living persons) donations. Good luck!

Sincerely,

Hardy Parkerson, Atty.

Lake Charles, LA

Re: Will or Property Transfer?

The land is your father's separate property, so he can give it to whoever he wants in his will. As long as he doesn't change the will, you shouldn't have a problem. The only risk is that she could claim that she somehow contributed to the property (by paying for some of the bills, etc..) and that part of it is community property. But she would have to prove that.

Depending how large your Dad's estate is there could be tax consequences to giving the property to you now.

The cleanest solution would be to insist on a prenuptial agreement that states that all the property is seperate.

Re: Will or Property Transfer?

Other possible options besides deeding you fee simple title to his real estate is to deed you a future interest in the property and reserve a life estate for himself. Upon his death, the property would pass to you. He would have a right to live on it during his lifetime and he would not be able to alter the disposition through his will.

You might have some tax-saving options if you transfered ownership into an irrevocable AB trust if you wanted to utilize both of the spouse's federal estate tax exemptions. Qmenuestion is whether the new wife would want to leave the real property to you after her death, but that would be addressed in the irrevocable trust declaration.

Re: Will or Property Transfer?

Ms Arroyo's answer is accurate.

I have a question for you. Do you know that the woman refuses to sign the prenuptual agreement or is your dad so "smitten" that he thinks it would be wrong?

Unless he either changes his will or deeds the property to her while alive your ownership is safe.