Erik E. Kjeldsen, Attorney at LawErik E. Kjeldsen, Attorney at Law2025-03-31T12:33:22Zhttps://www.kjeldsenlaw.com/feed/atom/WordPress/wp-content/uploads/sites/1201164/2020/03/cropped-EEK_FAVICON_512x512_MAR20-32x32.jpgOn Behalf of Erik E. Kjeldsen, Attorney at Law<![CDATA[When do the duties of a POA agent begin?]]>https://www.kjeldsenlaw.com/?p=492982022-11-15T03:32:02Z2022-11-15T03:32:02ZWho should you choose as your agent?
During the estate planning process, you will be asked to name a person to act as your POA agent. Many people choose their spouse or an adult child as their agent, but you can also select someone outside your family.
Whomever you choose, make sure that person is someone you implicitly trust as they may eventually have to manage your financial affairs. That person should also have a wide range of skills, including perspective, judgment and integrity, to handle the wide range of duties necessary as a POA agent. The chosen individual can be the same one who manages your health care POA, but it doesn't have to be.
When the agent's duties begin
Generally, your agent's duties will not begin until some specific event, such as a medical event or an accident, renders you incapacitated. Duties can include:
Identifying and controlling assets
Securing all assets
Attempting to preserve your estate
Managing legal obligations
The complexities of estate planning
If you're unsure who you should name as your agent, it may help to discuss the issue with your family and friends as well as financial advisors who can provide neutral insight. Advanced directives, like POAs and other documents, including do-not-resuscitate documents, will make life easier for your survivors who won't have to ponder what to do.
A good, comprehensive estate plan can change over time and should be reviewed periodically. As with other parts of your plan, you can change, add and delete people named in your directives and other documents like wills, trusts and other. Your survivors will thank you for having the foresight to do this planning when you are still able.]]>On Behalf of Erik E. Kjeldsen, Attorney at Law<![CDATA[When you die without a will]]>https://www.kjeldsenlaw.com/?p=492952022-09-19T15:58:12Z2022-09-14T15:57:45ZAssets may not be used effectively
If you had a will, it may have stipulated that your cousin inherit your home because that person was the most capable of maintaining it. However, without a will, the state may decide that your sibling or parent gets it instead. That could lead to issues between your cousin and the person who actually gets the home. In addition, it could also result in the home falling into disrepair, which may make it harder to liquidate or otherwise make use of.
Assets may go to people you're not close with
Without a valid will, your stuff may go to an estranged adult child or another distant relative who you don't know very well. The people who you were close to may feel hurt or betrayed by the fact that you didn't bother to take basic estate planning steps to protect their inheritance rights.
They may also resent those who did get an inheritance and take it out on them in various ways. For instance, they may refuse to see those people during the holidays or take other steps to keep them away from the family. In some cases, this may cause secondary issues with extended family members that may result in an even deeper rift between surviving loved ones.
Creating a will is something that you can do once you reach the age of majority. Even if you don't have a lot of assets, a will can still be useful as it helps to override intestacy laws.]]>On Behalf of Erik E. Kjeldsen, Attorney at Law<![CDATA[The advantages and disadvantages of forming an LLC]]>https://www.kjeldsenlaw.com/?p=491792022-07-21T06:12:00Z2022-07-19T18:11:26ZBenefits of an LLC
An LLC provides limited liability protection for its owners so that their personal assets are protected from debts and liabilities incurred by the business. This can be a major advantage for businesses with high risks or large amounts of debt. This setup may also protect members’ personal assets like their homes and cars. If you are in a profession where accidents are common, this type of protection is especially valuable.
Another pro is that if you form an LLC you will be taxed as a separate entity, so your business income will not be taxed along with your personal income. It also gives the company the ability to avoid double taxation, something corporations can't do. Double taxation occurs when profits are taxed at both the corporate level and again when they are distributed to shareholders as dividends.
Other considerations
One downside to forming an LLC is the cost. You will have to pay the filing fee to the state, which is $100 in Louisiana.
Another downside of forming an LLC is that you’ll be required to file annual reports with the state. This can be expensive and time-consuming. If the LLC does not stay in good standing with the state under Louisiana business law, it could be dissolved.
Another disadvantage of forming an LLC is that it may be difficult to raise capital. Venture capital funds are often hesitant to lend money to LLCs because investing in them can result in taxable business income.
Thre are many pros and cons to forming an LLC. It's a good idea to research Louisiana's incorporation laws so that you know if it’s the right setup for your business.]]>On Behalf of Erik E. Kjeldsen, Attorney at Law<![CDATA[What are the grounds for divorce in Louisiana?]]>https://www.kjeldsenlaw.com/?p=491752022-07-20T16:17:31Z2022-05-13T05:45:13ZWhat is the divorce law in Louisiana?
Louisiana is a state that follows the laws of no-fault and fault divorce. This means that you can obtain a divorce by stating “irreconcilable differences” between you and your spouse. At the same time, you can also file for divorce based on certain grounds. Depending on the circumstances within your marriage, you might want to file a fault divorce based on one of the grounds for divorce.
What are the grounds for divorce in Louisiana?
Louisiana allows married couples to seek a divorce based on three different grounds. One of them is that the couple has lived separately for at least 180 days. This length of time is acceptable if there are no minor children involved. If there are minor children in the picture, one spouse can file for divorce after living separately from the other for 365 days. However, if there’s a situation of domestic violence or sexual abuse, it might be possible to use these grounds with modifying rules.
It’s required that the couple lived separately prior to one spouse filing the divorce petition.
Adultery is a common ground for divorce in the state. If one spouse has carried on an extramarital affair during the marriage, the other spouse can use adultery as the grounds for seeking a divorce. However, it’s only possible to successfully obtain a divorce if there is sufficient proof and someone else is able to provide evidence and corroborate the allegations of adultery. There must also be proof that a sexual extramarital relationship existed.
Conviction of a felony is the last grounds for divorce in Louisiana. If one spouse has committed a serious crime that was classified as a felony and was convicted, the other spouse can choose to file for divorce.
It’s important to seek help if you are considering filing for divorce based on any of these grounds. Having all the information might help the proceedings along.]]>On Behalf of Erik E. Kjeldsen, Attorney at Law<![CDATA[Heirloom estate planning in Louisiana]]>https://www.kjeldsenlaw.com/?p=491592022-04-04T17:36:41Z2022-03-16T22:59:55ZSteps you can take to preserve heirlooms and protect loved ones from heartache
The grieving process is a time for families to connect and share life stories. Keeping these sentiments mutual and warm often depends on whether there is a good plan for transferring the assets of the estate. In Louisiana, estate planning and succession can involve a variety of tools to help you transfer your heirlooms to loved ones. The basic tool for that is, of course, a will. To be sure that your will clearly and effectively expresses your wishes regarding the transfer of property, it is always a good idea to work with an estate planning and succession attorney. There may also be other options that work for your particular situation — for example, a trust may be an effective tool for preserving the value of property for generations to come.
Accounting for sentimental value
When assessed in a financial market, some heirlooms may not have much value. However, they may still have sentimental value, and sentimental value can make the transfer of heirlooms a sensitive matter. To minimize the risk of heartache and confusion, it may be a good idea not only to list your heirlooms, but also to write down exactly why they have sentimental value, and exactly who in your family might appreciate that value the most. This can provide a valid reason for your decision to leave certain items of property to certain family members. Again, you should talk to an estate planning attorney about including your list of heirlooms in your will.
For more on these matters, please see our previous post: "Being transparent with your heirs."]]>On Behalf of Erik E. Kjeldsen, Attorney at Law<![CDATA[Disinheriting a family member]]>https://www.kjeldsenlaw.com/?p=491532022-01-13T23:29:51Z2022-01-13T23:29:51ZDisinheriting a family member from your estate plan is a necessary act at times. Regardless of your reasons for removing a relative from your will, you want to make sure that it is done right and can't be contested after you're gone.
Who can you cut out from a will?
There are plenty of times where you can cut someone out of your will, such as adult children, siblings and parents. However, there are a few circumstances where you can't cut someone out of your will.
If your spouse survives you, you cannot cut them out of your will without some form of prenuptial agreement. The same goes for minor children, even if they wouldn't inherit things until they are of age.
Other relatives are all fair game to cut out of your estate plan. It's assumed that as long as you were not providing for the person as you would a spouse or minor child, you do not owe them a share of your assets after you've died.
Why would you want to cut someone out of a will?
Sometimes, people do it over family disputes or hurt feelings. Other times, it's done for perfectly logical reasons. For example, if you have one child who is not well-off financially, you might be inclined to give them a larger inheritance than your other children. The important thing is to address each child by name, even if they aren't getting anything.
Can you add someone back in after you've changed it?
You can add someone back into your will at any time, and it's even advised if situations or circumstances changed. Even if you don't want to add someone back into your will, reading through the verbiage and making sure you aren't saying anything hurtful or negative in the will might be a wise idea.
Changes to your will shouldn't be made lightly, but you have every right to arrange your estate plan how you want it. This includes choosing not to leave money to certain family members.]]>On Behalf of Erik E. Kjeldsen, Attorney at Law<![CDATA[Being transparent with your heirs]]>https://www.kjeldsenlaw.com/?p=491492021-11-24T18:33:42Z2021-11-24T18:33:42ZIf you can’t plan for everything
Some estate owners are surprised at how much help their heirs offer during estate planning. The individual perspectives of your beneficiaries offer significant insight. You need every bit of intel possible regarding the future of your estate. If you think you’ll fall short in planning everything out alone, consider getting your heirs involved.
Preparing your heirs for responsibility
Big responsibilities are hard to manage when they’re brought into your life by surprise. However, heirs are more likely to choose the right education or career when they’re aware of their future inheritances. Here are three instances when such preparation matters:
Business successions: Handing a business over through a succession means that “everything is in place.” If the owner becomes incapacitated or dies, a succession plan names who is now in charge.
Trust clauses: The clauses in a trust might require an heir to achieve exact milestones before receiving assets.
Will contestations: There are numerous ways to protect your wishes from being contested after you die.
Estate planning in Louisiana
Addressing conflicts and perceived impartiality are the biggest advantages of planning with your heirs. Speak with a financial expert to also ensure that conflicts don't arise. You might love those whom you'll bequest assets to, but when you're gone, they might also start fighting.]]>On Behalf of Erik E. Kjeldsen, Attorney at Law<![CDATA[Probate: From start to finish]]>https://www.kjeldsenlaw.com/?p=491452021-09-23T22:09:45Z2021-09-23T22:09:45ZWill vs. trust
Your will differs from a trust in that it's exposed to contests. A trust, being a common estate tool, instead, takes your assets and keeps them private. Deciding between these two is often more about avoiding probate. With a trust, your assets skip probate hearings entirely.
Probate
Probate is issued to examine a deceased's estate while assigning beneficiaries to it. The process happens in direct response to your death. The public courts of Louisiana use a default system to disburse your assets. This process is used should you die without specific wishes in a will.
A probate case is also a time for families and friends to make statements and request more of your estate than you gave. Here are the typical categories your property falls into during a probate trial:
Community property: This property exists in marriages, being the things you acquire and bought while married.
Separate property: Things you owned before marriage, inheritances and land get declared as separate property in many cases.
Succession
The decisions made in a public court are followed through in what's called a succession. How a succession forwards is based on the outcomes of the probate trial. A succession is led by an entity assigned as an executor. This relative, agency or court appointee executes your will along with the criteria set by a judge. The succession is the exact point when inheritors receive their assets, annuities get paid and property is sold.
Depending on how you've organized your estate, probate could pose a risk to your possessions and wishes. This trial leaves your will subject to objections and potentially changed by a judge, so it may be important to you to avoid probate.]]>On Behalf of Erik E. Kjeldsen, Attorney at Law<![CDATA[What are your duties as power of attorney?]]>https://www.kjeldsenlaw.com/?p=491062021-08-13T02:16:36Z2021-07-30T21:21:09Zcertain responsibilities that go with that appointment. The "principal" is the person you are caring for and on whose behalf you, the "agent," will be working. In the person's estate documents, there may be an explanation of the legal duties you now have. They may include the following.
Act on the person's behalf
A person has asked you to act as an agent in their financial matters. You may need to:
• Pay the principal's bills
• Access their accounts
• Pay their taxes
• Buy and sell investments or real estate
Make a list of their assets and liabilities
In some cases, the principal made understanding your duties easy for you by listing them when they knew there would be a need for power of attorney. You will be responsible for the following:
• Phone, cable, and internet bills
• Utility bills
• Brokerage accounts
• Bank accounts
• 401(k)s, IRAs and 403(b)s
• Mortgage bills
• Tax bills
• Insurance bills
If there are accounts that have online management, you will need to contact those account administrators. The financial institutions should know of your power of attorney.
Protect the assets of the principal
This means making sure their home is secure. You might check pipes for freezing, leaks, and other conditions. A neighbor might be of help in this because they know the weather conditions. If the principal is incapacitated for a long time, cancel the phone and newspaper accounts.
Pay necessary bills
If you have suspended a credit card, make sure that you are still paying the bills. The card may be the way the principal was paying them automatically.
Keep excellent records
Track all expenses made on behalf of the principal. It will show that you have upheld your duties, and it may be important to receiving payment for the time you spent acting as the power of attorney.]]>On Behalf of Erik E. Kjeldsen, Attorney at Law<![CDATA[How assets are distributed in probate]]>https://www.kjeldsenlaw.com/?p=491032021-08-13T02:16:49Z2021-05-25T21:17:45ZProbate when someone dies without a will
When someone dies without a will, the estate will still need to go through probate in most cases. Probate is a legal process through which the assets are distributed and the creditors' claims are handled before the estate can be closed. The court will appoint someone to serve as the estate administrator. He or she will have similar duties to those expected of an executor. However, how the assets will be distributed will be controlled by the state's intestacy laws.
Passing of community vs. separate property
If a decedent without a will has separate property that he or she owned before his or her marriage, the assets will pass to the following people by order of priority:
Children
If no children survive, siblings or their descendants if the siblings are deceased
If no children or siblings, the parent or parents
If no children, siblings, or parents, the spouse
If the decedent's estate is comprised entirely or mostly of separate property, a surviving spouse in this scenario might not receive anything. If there is community property with a surviving spouse, the assets will go to the decedent's children with the surviving spouse receiving the right to use to property for the rest of his or her life. If there are no surviving children, the estate will pass to the surviving spouse. If there is no surviving spouse or children, the assets will pass as if they were separate property.
Estate planning might help to avoid problems with how your assets might be distributed. By writing a will, you might be able to control who receives your assets instead of allowing Louisiana's intestacy laws control their distribution.]]>