After passing away in Louisiana, your estate is distributed among your beneficiaries based on the terms of your will after going through a probate process. This process comes at a cost; for example, you will have to pay fees for the probate process, your trustee, and on top of that, the federal estate tax, which can be significantly high. Therefore, let us look at how you can plan your estate to not be taxed so much.
Generally, Louisiana law considers all personal property, businesses, and real estate as estate property. If you don’t have a will, the court will divide your property in a way they see fit, which can be problematic for your beneficiaries. However, if you have a valid will, the court will respect your wishes and disburse it according to your terms.
When planning your estate, Louisiana law requires you to name your succession representative. This person will manage and protect your property after you die. They will ensure that all your debts are settled and your taxes paid before distributing what’s left to your beneficiaries.
It is important to minimize or completely avoid the significantly high federal estate tax so that your beneficiaries can remain with something substantial. You can achieve this with proper estate planning. It would help if you worked closely with a professional and an attorney to guide you through this process.
Protect your family members from extremely high federal estate tax. You can do this by trying out the few options given above.