What is an Estate?
May 7, 2021 by Ciolino & Onstott
The objective of Louisiana succession is settling the estate of the deceased. Doing so involves multiple steps that all hinge on several important questions:
The information in this blog post is educational in nature and is not a substitute for legal advice. For legal advice regarding your estate, estate planning, or succession in Louisiana, schedule your free consultation now with Ciolino & Onstott, LLC.
You have an estate before death. During your life, your estate is anything that you own that has a net worth. It could be something that you own fully or something that you have an interest in. For example, whether you are the sole owner of a $500,000 home in Louisiana or you are a member of a multi-member LLC, both would be part of your estate before death.
Other common examples of an estate before death in Louisiana include:
When someone dies, the estate is defined as the assets that belonged to the deceased. Many estates require the appointment of an executor, personal representative, or administrator, which is the person tasked with settling the estate after death. Generally known as the executor of an estate or personal representative, this person has the responsibility of settling the estate through the succession process. The steps involved in settling the estate depend on several factors under Louisiana succession laws.
Related: What is a Succession?
If the decedent had a valid will that complied with Louisiana law, that will must be probated and adhered to by the succession representative. If that person did not have a will, then their estate must go through the Louisiana intestate succession process. We will go into further detail on the intestate process in our next post.
If the decedent was married at the time of their death, then their property must account for the Louisiana laws of community property. These laws will be described in greater detail in a future blog post as the matter can become very complicated.
To transfer the property from the deceased person, an heir or succession representative must provide the court with a detailed descriptive list of the assets of the estate. In more complex successions, a complete inventory may need to be provided by the succession representative.
What is included in an estate inventory? It depends on the assets owned before death. Examples include:
Life insurance proceeds do not pass through the estate of the deceased person when they die, as long as there is a named beneficiary on the policy. If there is no named beneficiary on the policy, the proceeds may become part of the succession process. Therefore, it is very important to keep life insurance policies up-to-date.
Some people choose to intentionally make life insurance proceeds part of their estate, such as by developing life insurance trusts or securing life insurance policies designed to pay for after-death expenses. In these cases, the life insurance proceeds are part of an estate after death.
While we answered a generic question in this blog post, it is important to remember that each estate is unique. What will occur in your specific circumstances depends on a variety of factors about your assets and your family. To learn more about estate and estate planning, schedule your free consultation with Ciolino & Onstott, LLC now.
- What is an estate?
- What is an estate during a person's life?
- What is an estate after death?
The information in this blog post is educational in nature and is not a substitute for legal advice. For legal advice regarding your estate, estate planning, or succession in Louisiana, schedule your free consultation now with Ciolino & Onstott, LLC.
What Is an Estate Before Death?
You have an estate before death. During your life, your estate is anything that you own that has a net worth. It could be something that you own fully or something that you have an interest in. For example, whether you are the sole owner of a $500,000 home in Louisiana or you are a member of a multi-member LLC, both would be part of your estate before death.
Other common examples of an estate before death in Louisiana include:
- Bank accounts
- Savings accounts
- Retirement accounts
- Land
- Real estate
- Life insurance proceeds left to a named beneficiary or trust
- Art
- Investments
- Vehicles
- Boats
- Jewelry
- Furniture
- Other assets
What Is an Estate After Death?
When someone dies, the estate is defined as the assets that belonged to the deceased. Many estates require the appointment of an executor, personal representative, or administrator, which is the person tasked with settling the estate after death. Generally known as the executor of an estate or personal representative, this person has the responsibility of settling the estate through the succession process. The steps involved in settling the estate depend on several factors under Louisiana succession laws.
Related: What is a Succession?
If the decedent had a valid will that complied with Louisiana law, that will must be probated and adhered to by the succession representative. If that person did not have a will, then their estate must go through the Louisiana intestate succession process. We will go into further detail on the intestate process in our next post.
If the decedent was married at the time of their death, then their property must account for the Louisiana laws of community property. These laws will be described in greater detail in a future blog post as the matter can become very complicated.
To transfer the property from the deceased person, an heir or succession representative must provide the court with a detailed descriptive list of the assets of the estate. In more complex successions, a complete inventory may need to be provided by the succession representative.
What is included in an estate inventory? It depends on the assets owned before death. Examples include:
- Real estate
- Land
- Vehicles
- Checking accounts
- Savings accounts
- Investment accounts
- Life insurance proceeds not left to a specific beneficiary or that go directly into a trust named as the beneficiary
- Retirement accounts
- Business interests
- Ownership interests in intellectual property
- Any debts or judgments owed to the deceased
- Jewelry
- Art
- Furniture
- Boats
- Other assets with a financial worth
Is Life Insurance Part of an Estate After Death?
Life insurance proceeds do not pass through the estate of the deceased person when they die, as long as there is a named beneficiary on the policy. If there is no named beneficiary on the policy, the proceeds may become part of the succession process. Therefore, it is very important to keep life insurance policies up-to-date.
Some people choose to intentionally make life insurance proceeds part of their estate, such as by developing life insurance trusts or securing life insurance policies designed to pay for after-death expenses. In these cases, the life insurance proceeds are part of an estate after death.
Learn More about Estates & Estate Planning
While we answered a generic question in this blog post, it is important to remember that each estate is unique. What will occur in your specific circumstances depends on a variety of factors about your assets and your family. To learn more about estate and estate planning, schedule your free consultation with Ciolino & Onstott, LLC now.