New Orleans Estate Planning Lawyer

Power of Attorney in Louisiana

In legal terms, a Power of Attorney is called a Mandate in the state of Louisiana. Essentially, a Mandate is a legally valid contract that gives an individual, also called an Agent, the authority to make decisions that apply to your finances and medical options. If you choose to have multiple Mandates handling different aspects of your plan, that is an acceptable option and would be upheld in court. Since Louisiana does not honor “Durable Power of Attorney”, any contract created will be deemed invalid upon the person’s death. Only if the person is incapacitated will the Mandate have control. Due to the substantial responsibilities of a Louisiana Mandate, you will need the trusted guidance from our estate planning attorneys in New Orleans. We can even help you with selecting a Mandate that will have your best interests at heart.

What is Succession Planning?

Per Louisiana law, succession planning is the process by which an individual’s property is divided among the heirs to the estate. This is often called probate in other states. Like probate, not every piece of property will be considered up for grabs. If the estate has named beneficiaries, then it would not qualify for succession. Examples of this would include retirement assets, 401k plans, and various forms of insurance policies. Succession is truly only required if there is no other alternative for proper asset distribution.

Having a succession can also provide a means for creditors of the decedent to impose their right to be paid. For example, an heir to the estate may be responsible for the debts of the decedent (up to the exact dollar amount of their inheritance). If the heir inherited $50,000 and owed $100,000 in debt, then the creditors would only seek the additional 50k.

Due to the financial implications of succession planning in Louisiana, it’s critical that you reach out to our New Orleans estate planning lawyers today for guidance and a consultation. 

Succession Planning for Businesses

Succession plans are also heavily utilized as tools for protecting the future and sustainability of businesses. To ensure that a business remains functional, even in the event of crisis or loss, succession plans revolve around two exit strategies: 

• Crisis succession – these are the unforeseen events such as injuries, disabilities, death, or illness. It’s often more difficult to plan for these due to the random nature of each.
• Ordinary exits – these generally apply to organic transitions within the business such as retirement. The succession strategies involved in these cases are usually straightforward and highly organized.

Any effective succession plan within a business will cover a wide array of issues that include their own plan of action. Some of these issues may include:

• How to determine the value of the business, and whether a valuation is required by an external party
• Who will be the successor(s) and how will that be determined?
• How will tax benefits be managed and maximized?

If you are seeking to create a succession plan for your business in Louisiana, our estate planning attorneys in New Orleans can help to provide a reliable framework for sustainability after the event of a loss or natural transition.