Are estate taxes a concern for Louisiana residents?

Estate planning in Louisiana requires careful consideration. Individuals need to think about what might occur in succession court. Every person’s needs, wishes and risks are different, and so what works for one situation does not necessarily help in another scenario. Testators need to plan carefully, especially if they hope to limit reductions of their estates during succession proceedings. They must contemplate their family relationships and personal property. It is only through proper planning that individuals can maximize the positive impact they have after their passing.

One concern that often arises during succession proceedings in Louisiana is the need to pay estate taxes. Estate taxes apply to the value of someone’s estate and require payment before the distribution of assets to beneficiaries during the succession process. Are estate taxes a concern for Louisiana testators?

Louisiana does not impose and estate tax

Louisiana, like most states, does not collect an estate tax. People therefore do not need to worry about estate taxes diminishing their legacy after they die. Unfortunately, federal estate taxes apply regardless of where someone lives when they die. These taxes can add up to hundreds of thousands of dollars or even more when levied against sizable states. Most Louisiana states are exempt from federal estate taxes because the threshold is so high. In 2024, only estates worth more than $13,610,000 are subject to estate taxes.

Many people can diminish how much their estates pay in estate taxes through careful advance planning, such as changing the ownership of assets and making gifts to loved ones. As such, learning more about Louisiana and federal laws for succession proceedings may benefit those trying to leave a meaningful legacy.