New Orleans Trust Attorney

IRA TRUST

An Individual Retirement Account (IRA) Trust is a type of trust that is designed specifically to act as the beneficiary of your IRA upon your death. It allows you to dictate how your retirement funds are to be distributed to your beneficiaries. There are two types of IRA Trusts: conduit and accumulation.

1. A conduit IRA Trust requires all distributions from the inherited IRA to flow out to the named beneficiaries. The Trustee has no discretion to accumulate the distributions inside the trust.

2. An accumulation IRA Trust permits the Trustee to accumulate distributions from the inherited IRA within the trust. This type of trust provides a greater level of creditor protection than a conduit trust, but it can also result in less favorable tax treatment.

The main benefits of an IRA Trust include the ability to control distributions, protect assets from creditors and provide for beneficiaries who are minors, have special needs, or may not be able to manage large sums of money.

The attorneys at Sunseri Law Firm, LLC strives to “Make The Complex Understandable”. If you have any questions, contact The Sunseri Law Firm, LLC today to schedule a consultation.

IRREVOCABLE TRUST

An irrevocable trust in Louisiana is a type of trust that cannot be changed or revoked once it has been created. It is a legal arrangement in which a person, known as the grantor or settlor, transfers assets to a trustee to be held and managed for the benefit of the trust’s beneficiaries.

There are several benefits and disadvantages to creating an irrevocable trust in Louisiana. Benefits of an Irrevocable Trust in Louisiana:

1. Asset Protection: One of the main benefits of an irrevocable trust is that it provides asset protection. Once assets are transferred to the trust, they are no longer considered the property of the grantor and are protected from creditors and lawsuits.

2. Estate Planning: Irrevocable trusts are commonly used in estate planning to minimize estate taxes and ensure that assets are distributed according to the grantor’s wishes after their death.

3. Medicaid Planning: In Louisiana, an irrevocable trust can be used as part of a Medicaid planning strategy to protect assets from being counted towards eligibility for long-term care benefits.

4. Control: By creating an irrevocable trust, the grantor can maintain a level of control over how their assets are managed and distributed. They can also specify conditions for the distribution of assets, such as age or milestones that must be met by beneficiaries.

The disadvantages of an Irrevocable Trust in Louisiana are as follows:

1. Loss of Control: Once assets are transferred to an irrevocable trust, the grantor gives up control over them. This means they cannot change the terms of the trust or access the assets without the trustee’s permission.

2. Tax Consequences: There may be tax consequences associated with creating an irrevocable trust, such as gift taxes or income taxes on trust income if not addressed.

3. Cost: Creating an irrevocable trust can be expensive, as it often requires the assistance of an attorney and may involve ongoing administrative fees.

4. Lack of Flexibility: As the name suggests, an irrevocable trust cannot be changed or revoked. This means that if circumstances change, the grantor cannot modify the terms of the trust to accommodate those changes.

The attorneys at Sunseri Law Firm, LLC strives to “Make The Complex Understandable”. If you have any questions, contact The Sunseri Law Firm, LLC today to schedule a consultation.

LIVING (INTER-VIVOS) TRUST

An inter-vivos trust, also known as a living trust, is a legal arrangement created during a person’s lifetime where a trustee is appointed to manage the person’s assets for the benefit of the trust’s beneficiaries. This differs from a testamentary trust, which is created after a person’s death through a will.

In Louisiana, inter-vivos trusts can be revocable or irrevocable, depending on the terms of the trust document. A revocable inter-vivos trust allows the person who created the trust, known as the settlor or grantor, to retain control of the assets and change the terms of the trust or even dissolve it entirely. This type of trust does not avoid estate tax because the assets remain part of the settlor’s estate.

An irrevocable inter-vivos trust, on the other hand, means that once the trust is created, the settlor cannot change its terms or dissolve it without the consent of the beneficiaries. This type of trust can help avoid estate tax because the assets are no longer considered part of the settlor’s estate. Inter vivos trusts, whether revocable or irrevocable, can also be useful for managing assets during the settlor’s lifetime, particularly if they become incapacitated, and for avoiding the probate process after the settlor’s death.

The attorneys at Sunseri Law Firm, LLC strives to “Make The Complex Understandable”. If you have any questions, contact The Sunseri Law Firm, LLC today to schedule a consultation.

REVOCABLE TRUST

A revocable trust, also known as a living trust, is a type of trust that can be changed or terminated by the trust creator, or grantor, during their lifetime. It is a legal entity that holds assets for the benefit of another person, group, or organization, known as the beneficiary.

In Louisiana, as in other states, a revocable trust is often used as an estate planning tool. The Settlor (Grantor) transfers assets into the trust and can specify how they want the assets to be distributed upon their death. Because the trust is revocable, the Grantor can make changes to it at any time, as long as they are mentally competent.

A benefits of a revocable trust is that it can help avoid probate. A trust can provide privacy since its terms and the assets it holds are not generally made public. If you have assets that you would prefer to keep private, placing them in a trust would accomplish said objective. However, in Louisiana, probate is a lot more streamlined with Independent Administration. Further, a revocable trust does not avoid estate taxes.

In setting up a Trust, you must determine the terms and conditions of the Trustee and Beneficiary.

1. Trustee: This is the person or institution that is responsible for managing the trust and its assets. In many cases, the person who creates the trust (the grantor) acts as the trustee during their lifetime, which means they retain control over the assets in the trust. The grantor usually appoints a successor trustee who will take over the management of the trust upon the grantor’s death or incapacity. The trustee has a fiduciary duty, which is a legal obligation to act in the best interests of the beneficiaries.

2. Beneficiary: This is the person, group, or organization that will receive the benefits of the trust. The beneficiaries of a revocable trust can be changed at any time while the grantor is alive and competent. Upon the death of the grantor, the assets in the trust are distributed to the beneficiaries in accordance with the terms of the trust.

The Trustee and the Beneficiary can be the same person, but they don’t have to be. It’s also possible to have multiple trustees and multiple beneficiaries. The specific rules and responsibilities of Trustees and Beneficiaries are usually outlined in the trust agreement.

The attorneys at Sunseri Law Firm, LLC strives to “Make The Complex Understandable”. If you have any questions, contact The Sunseri Law Firm, LLC today to schedule a consultation.

TESTAMENTARY TRUST

A testamentary trust in Louisiana is a type of trust that is created through a person’s will and takes effect after their death. This means that the trust does not go into effect until the person who created it, known as the settlor (grantor) dies. The purpose of a testamentary trust is to provide for the management and distribution of the grantor’s assets after their death. The trust is typically created to benefit specific individuals, such as children or grandchildren, and can also be used to support charitable causes.

The settler of a testamentary trust can appoint a trustee, who is responsible for managing the trust and distributing its assets according to the terms outlined in the trust document. The trustee has a fiduciary duty to act in the best interests of the beneficiaries and must follow the instructions and guidelines set forth by the grantor. One of the main benefits of a testamentary trust is that it allows the settlor to have control over how their assets are distributed after their death. This can be especially beneficial for individuals who have minor.

The attorneys at Sunseri Law Firm, LLC strives to “Make The Complex Understandable”. If you have any questions, contact The Sunseri Law Firm, LLC today to schedule a consultation.

TRUST ADMINISTRATION

In Louisiana, as in many other states, trust administration can be a complex process that involves many legal, financial, and administrative tasks. Here are some reasons why you might need an attorney to assist with trust administration in Louisiana:

1. Understanding the Law: Trust laws can be complex and are subject to change. An attorney who specializes in trust administration can ensure that the trust is administered in accordance with the current laws.

2. Avoiding Legal Issues: Mistakes in trust administration can lead to legal disputes among beneficiaries or with the IRS. An attorney can help you avoid such issues.

3. Legal Documents: The administration of a trust often requires the preparation and filing of legal documents. An attorney can ensure that these documents are prepared and filed correctly.

4. Court Proceedings: In some cases, the administration of a trust may involve court proceedings. An attorney can represent the trust in these proceedings.

5. Tax Issues: Trusts are subject to various tax rules and regulations. An attorney can help you understand these rules and ensure that the trust is in compliance with them.

6. Dispute Resolution: If any disputes arise among the beneficiaries of the trust, an attorney can help resolve them in a way that is fair and in accordance with the terms of the trust.

7. Advice and Guidance: An attorney can provide advice and guidance on all aspects of trust administration, from the initial steps of gathering the trust assets to the final distribution of those assets to the beneficiaries.

The attorneys at Sunseri Law Firm, LLC strives to “Make The Complex Understandable”. If you have any questions, contact The Sunseri Law Firm, LLC today to schedule a consultation.

TRUST LITIGATION

Trust litigation refers to legal disputes that arise in relation to trusts. A trust is a legal arrangement where a person (the settlor) transfers their assets to a trustee, who holds and manages the assets for the benefit of the beneficiaries. Trust litigation can involve a variety of issues, but some of the most common include the following:

1. Breach of Fiduciary Duty: A fiduciary duty is a legal obligation that requires trustees to act in the best interests of the beneficiaries. This includes managing the trust assets prudently and making decisions that are in line with the terms of the trust. If a trustee fails to fulfill their fiduciary duty, they may be held liable for breach of fiduciary duty.

2. Mismanagement of Trust Assets: Trustees have a duty to manage the trust assets in a responsible and prudent manner. This includes investing the assets wisely and ensuring that they are not wasted or misused. If a beneficiary believes that the trustee is mismanaging the trust assets, they may bring a legal action to address the issue.

3. Disputes over Trust Administration: Trust administration involves the day-to-day management of the trust, such as distributing income and assets to the beneficiaries. Disputes may arise if beneficiaries feel that the

4. Interpretation of Trust Terms: Trust documents can sometimes be complex and open to interpretation. Disputes can arise over the meaning of certain terms or provisions, and litigation may be necessary to resolve these disagreements.

5. Trustee Removal: If a trustee is not effectively performing their duties or is acting in a way that is detrimental to the trust or the beneficiaries, it may be necessary to remove them. This can lead to litigation if the trustee refuses to step down or if there are disagreements over who should replace them.

6. Trust Modification or Termination: Under certain circumstances, it may be necessary or desirable to modify or terminate a trust. This can lead to disputes if the trustee or the beneficiaries disagree about whether this should happen or how it should be done.

7. Disputes over Trust Distributions: Disagreements can arise over when and how trust assets should be distributed to beneficiaries. This can involve issues such as whether distributions are being made in accordance with the terms of the trust and whether the trustee is exercising proper discretion in making distributions.

8. Contesting the Validity of the Trust: In some cases, a beneficiary or potential beneficiary may question the validity of the trust itself. This could be due to allegations of undue influence, fraud, or lack of capacity at the time the trust was created.

The attorneys at Sunseri Law Firm, LLC strives to “Make The Complex Understandable”. If you have any questions, contact The Sunseri Law Firm, LLC today to schedule a consultation.