At Kallio Law Firm, LLC, we understand the unique aspects of Louisiana estate planning and are here to help you choose the right trust to fit your needs. Our client-focused approach means we listen to your goals and tailor solutions that work best for you and your family.
Let our team guide you through creating a trust that truly reflects your wishes. Contact us today for a free initial consultation and take the first step toward a secure and well-planned future. We look forward to helping you protect what matters most.
What Is a Trust?
A trust is a legal tool you can use in estate planning to manage and protect your assets. When you put your assets in a trust, you transfer ownership of those assets to the trust. This means the trust now holds and controls the assets, not you directly. Once your assets are in the trust, a third party manages them on your behalf or on behalf of your intended beneficiaries.
When you create a trust, your trust documents specify how you want the third party controlling the trust to manage and distribute your assets. This can include instructions for handling the assets during your lifetime and after your death. By putting your assets in a trust, you can streamline probate, maintain privacy, and provide for family members, minors, or others who might need help managing the assets they inherit.

What Is the Purpose of a Trust?
The purpose of a trust is to manage and protect assets for the benefit of specific individuals or organizations you choose. When you create a trust, you transfer ownership of your assets to the trust. This allows you to set rules on how others can use and distribute these assets if you become unable to manage them yourself.
For example, you can specify in your trust that your assets should go to loved ones or support charitable causes. You can also establish a trust to manage and protect assets for minors, people with disabilities, or others who may need assistance with financial matters, such as family members with substance abuse issues.
Additionally, trusts offer privacy, as the details of a trust do not go on the public record like the contents of a will. Overall, trusts provide a flexible and efficient way to control your assets and ensure others can access and use them as you intend.
The Anatomy of a Trust
A trust is a legal arrangement involving three main parties: the settlor (also known as the grantor), the trustee, and the beneficiary. Understanding each party’s role is vital to understanding how a trust works.
The Settlor
The settlor, also known as the grantor, is the person who creates the trust. This person transfers their assets into the trust, effectively giving up direct ownership of these assets. The settlor provides detailed instructions on how the trust should operate, including how and when the assets should go to their beneficiaries. This includes setting terms for how to manage the assets and specifying any conditions the beneficiaries must meet to receive their inheritances.
The settlor has significant control over the trust’s terms. For example, the settlor can decide whether the trust is revocable or irrevocable. A revocable trust is one the settlor can alter or cancel during their lifetime, allowing flexibility if the settlor’s circumstances or wishes change. On the other hand, an irrevocable trust is one the settlor cannot change once they establish it, which can offer benefits such as asset protection and tax advantages.
The Trustee
The trustee is the person or entity responsible for managing the trust’s assets according to the settlor’s instructions. The trustee has a fiduciary duty to act in the best interests of the beneficiaries. This means the trustee must manage the assets prudently, keeping the beneficiaries’ needs top of mind.
Trustees can be individuals, such as reliable family members or friends, or professional entities like banks or trust companies. Choosing the right trustee is essential, as this person or entity will have significant control over the trust’s assets and must be dependable and trustworthy.
The trustee’s duties include investing the trust’s assets, maintaining records, filing taxes, and distributing assets to the beneficiaries per the trust document’s instructions. The trustee must follow the terms of the trust strictly and cannot use trust assets for their own gain. The trustee’s role can be complex and requires a good understanding of financial and legal matters.
The Beneficiary
A beneficiary is a person or entity that benefits from the trust. Beneficiaries can be individuals, such as family members or other loved ones, or organizations, such as charities. The settlor designates their intended beneficiaries in the trust document and the conditions under which they will receive their assets.
Beneficiaries have the right to receive the assets or income from the trust per the settlor’s terms. The timing and manner of these distributions can vary widely. For example, a trust might provide regular payments to a beneficiary or distribute assets only when beneficiaries meet certain conditions, such as reaching a specific age or completing school.
Beneficiaries rely on trustees to manage the trust’s assets wisely and to distribute them according to the settlor’s wishes. While beneficiaries typically do not have control over the trust’s assets, they do have the right to information about the trust and to ensure that the trustee is fulfilling their duties properly.
Revocable vs. Irrevocable Trusts
Revocable and irrevocable trusts are two key types of trusts, each with distinct features and benefits.
A revocable trust allows the person who creates it to make changes or even cancel the trust during their lifetime. This flexibility makes revocable trusts popular for those who want control over their assets while they are alive. With a revocable trust, you can add or remove assets, change beneficiaries, and modify the terms of the trust as your circumstances change.
Revocable trusts can simplify the probate process for your beneficiaries, ensuring a smoother and faster transfer of assets after your death. However, because you retain control over the assets in a revocable trust, the IRS still considers them part of your estate for tax purposes. Additionally, placing assets in a revocable trust does not protect them from creditors.
On the other hand, an irrevocable trust is one you cannot change or cancel once you establish it. When you transfer assets into an irrevocable trust, you give up control and ownership of those assets. This lack of control might seem restrictive, but it offers significant benefits. Irrevocable trusts can protect your assets from creditors and lawsuits. Additionally, they can reduce estate taxes because the government no longer considers those assets part of your taxable estate. Many people use this type of trust for long-term planning, such as providing for children or other beneficiaries over time.
Choosing between a revocable and irrevocable trust depends on your specific needs and goals. Revocable trusts offer flexibility and ease of management, while irrevocable trusts provide more robust asset protection and tax benefits. Understanding these differences can help you make the best decision for your estate planning needs.

5 Common Trusts in Louisiana
Trusts can provide flexibility, protect your assets, reduce your tax obligations, and allow you to ensure care for loved ones. In Louisiana, several types of trusts can help you achieve these goals. Each type of trust serves a unique purpose and offers different benefits. Understanding these trusts can help you choose the ideal option for your estate planning needs.
Revocable Living Trusts
Revocable living trusts, also known as inter vivos trusts in Louisiana, are a popular choice for estate planning. When you create a revocable living trust, you transfer ownership of your assets to the trust while retaining control over them. This means you can manage and modify the trust as necessary during your lifetime. You can add or remove assets, change beneficiaries, and update the trust’s terms as circumstances change.
One of the main benefits of a revocable living trust is that it simplifies the probate process for your beneficiaries. Placing your assets in the trust ensures a smoother and faster transfer to your heirs after your death. This can save your loved ones time and money and keep your financial matters private.
Additionally, a revocable living trust can provide continuity in managing your assets if you become incapacitated. The person you appoint as a successor trustee can step in and manage the trust according to your instructions, which means they can handle your affairs without court intervention. A revocable living trust is an excellent option if you want flexibility, control, and peace of mind for your estate planning needs.
Irrevocable Trusts
Irrevocable trusts are another key option for estate planning in Louisiana. They offer strong asset protection and tax benefits. When you establish an irrevocable trust, you transfer ownership of your assets to the trust and give up control over them entirely. This means you cannot change or cancel the irrevocable trust once you establish it.
The main advantage of an irrevocable trust is asset protection. Because you no longer own the assets in an irrevocable trust, they are off-limits to creditors and legal judgments. This can provide considerable peace of mind, especially if you have substantial debts, own a business, or anticipate possible legal disputes in the future.
Irrevocable trusts also offer significant tax benefits. Since placing assets in an irrevocable trust removes them from your taxable estate, this move can reduce your estate taxes. Creating an irrevocable trust can preserve more of your wealth for your beneficiaries. Additionally, you can use an irrevocable trust to provide for your loved ones long-term by designating regular asset distributions over time.
Testamentary Trusts
A testamentary trust is one you establish through a will by including specific provisions in your will that create the trust upon your death. This type of trust allows you (the testator) to specify how others should manage your assets and distribute them to your beneficiaries in your will.
One of the main benefits of a testamentary trust is the ability to control the distribution of assets over time. For example, if you have minor children or beneficiaries who might need financial guidance, you can include terms in your will that dictate when and how they receive their inheritances. This can include setting age milestones or specific conditions that your beneficiaries must meet before they can access the assets.
Testamentary trusts also offer flexibility in estate planning. You can tailor a testamentary trust to address various needs, such as providing for a surviving spouse, supporting educational expenses, or ensuring care for a special needs beneficiary.
However, unlike living trusts, testamentary trusts do not simplify succession for your beneficiaries. The assets in your will must go through succession before they can transfer into a testamentary trust and pass on to your heirs.
Special Needs Trusts
A special needs trust enables you to transfer assets to loved ones with disabilities without affecting their eligibility for government benefits. If you have a loved one with special needs, you can use this type of trust to support them financially while preserving their access to programs like Medicaid and Supplemental Security Income (SSI).
When you create a special needs trust, you transfer assets into the trust so a trustee of your choosing can manage them. The trustee can use these funds to pay for expenses that improve the beneficiary’s quality of life, such as medical care, education, personal care attendants, and recreational activities. These funds supplement, rather than replace, government benefits.
One of the main advantages of a special needs trust is that it protects the beneficiary’s assets from counting against the resource limits for government aid programs. Eligibility for many government benefits requires proof of income or assets below a certain threshold. A special needs trust allows the beneficiary to continue receiving essential support services while benefiting from additional financial resources.
Joint Trusts
Joint trusts are a valuable estate planning tool for married couples in Louisiana. When you create a joint trust, both spouses transfer their assets into a single trust. This allows for easier management and distribution of the couple’s assets. Both spouses can serve as co-trustees, giving them equal control over the trust’s assets during their lifetimes.
One of the main benefits of a joint trust is the seamless transfer of assets upon the death of one spouse. When one spouse dies, the surviving spouse can continue to manage the trust without the need for succession, ensuring continuity and reducing legal hassles. This can save time and money and provide peace of mind for the surviving spouse.
Joint trusts also allow couples to set clear instructions on how their survivors should distribute their assets after both spouses pass away. This ensures others will honor the couple’s wishes and that their beneficiaries receive their inheritances according to the trust’s terms. Joint trusts are a practical choice for married couples looking to secure their financial futures.

Unique Factors in Louisiana Estate Planning
Louisiana estate planning laws have several unique aspects due to their basis in civil law rather than common law, which other states use. Understanding these unique factors is essential for effective estate planning in Louisiana. Each of the following concepts could significantly impact how you structure your estate plan and distribute your assets.
Forced Heirship
Forced heirship is a distinctive feature of Louisiana estate planning. This law requires that a portion of your estate must go to your direct descendants, known as forced heirs. Forced heirs include children under the age of 24 and any children of any age who are permanently incapacitated. If you have no such children, forced heirship does not apply.
Forced heirship laws say, with rare exceptions, you must leave a certain percentage of your estate to your forced heirs. If you have one forced heir, they are entitled to one-fourth of your estate. If you have two or more forced heirs, they collectively receive half of your estate. You can distribute the remaining portion of your estate according to your wishes.
Forced heirship ensures that certain family members receive a portion of your estate, regardless of your personal preferences. This can limit your ability to disinherit these heirs or leave them less than their forced share. Understanding forced heirship is essential for creating an estate plan that complies with Louisiana law while also fulfilling your intentions for asset distribution.
Collation
Collation is another unique aspect of Louisiana estate planning. Collation involves the returning of gifts or advancements you give to your descendants during your lifetime to the estate so all heirs receive an equal distribution of your assets. Collation aims to ensure fairness and equality among heirs, preventing any descendant from obtaining an unfair advantage.
For example, if you give a significant gift to one of your children during your lifetime, that gift might be subject to collation. Upon your death, the party managing your estate must add the value of the gift back to your estate and consider it part of the inheritance they will divide among all your heirs. However, collation applies only to gifts you give to descendants who would inherit under forced heirship laws, and you can expressly exclude gifts from collation in your will.
Right of Usufruct
The right of usufruct is a legal concept that allows one person to use and enjoy someone else’s property for a certain period while the ownership of the property remains with that other person. In Louisiana, usufruct often comes into play when a spouse dies. The surviving spouse might receive the right of usufruct for the deceased spouse’s property, allowing them to use and benefit from the property during their lifetime.
For example, suppose you leave your home to your children but grant your surviving spouse the right of usufruct. In that case, your spouse can live in the home and use it as they wish until their death. After your spouse’s death, full ownership of the home passes to your children.
The right of usufruct can provide security and support for surviving spouses while preserving the ultimate inheritance for children. Understanding usufruct can help you structure your estate plan to balance the needs of your surviving spouse and your children.
Naked Ownership
Naked ownership refers to the ownership of property without the right to use and enjoy it, which another person retains under the right of usufruct. In Louisiana estate planning, you can designate naked ownership in conjunction with the right of usufruct to provide for different beneficiaries at different times.
For instance, if you grant your spouse the right of usufruct over your property and leave the naked ownership to your children, your spouse can use the property during their lifetime. Once the usufruct ends, typically upon the death of your spouse, the children gain full (naked) ownership and control of the property.
Factors to Consider When Choosing a Trust
Several factors should guide your decision when choosing the type of trust you want to create in Louisiana. The following factors will help you select a trust that aligns with your estate planning objectives and your loved ones’ unique needs:
- Marital Status – If you are married, consider how a trust might benefit both you and your spouse. You might want something like a joint trust, which allows for joint management of assets and seamless control and distribution upon the death of one spouse. This can simplify the estate planning process and provide clear instructions for asset distribution after both spouses pass away, unifying and streamlining your estate planning goals.
- Children – If you have children, especially minors, think about how a trust could help you specify how and when they will receive their inheritance. You might want to set terms that distribute assets at certain ages or milestones, providing support as your children mature. Additionally, consider trusts that allow your children to avoid succession, making the transfer of assets smoother and faster. This is important if you want to provide immediate financial support for your children’s needs after you die.
- Relatives with Special Needs – If you have relatives with special needs, you might want to consider a special needs trust, which allows you to provide for their financial needs without affecting their eligibility for government benefits. This type of trust can ensure your loved one receives supplemental financial support for medical care, education, and other expenses while preserving their access to essential government aid programs.
- Blended Families – If you have a blended family with children from previous relationships, consider how a trust can help you ensure that your estate gets distributed according to your wishes. Look for options that allow you to specify which assets go to which beneficiaries, reducing potential conflicts among family members. You can create a trust that provides for your current spouse while ensuring your children from previous relationships receive their inheritance. Utilizing the right kind of trust can allow you to create a clear and fair distribution plan that respects everyone’s needs and interests.
- Charitable Goals – If you have charitable intentions, talk to your attorney about trusts that allow you to support the causes you care about while providing tax benefits. Some trusts allow you to specify which charities will receive your assets and under what conditions. You can also structure trusts to provide income to your beneficiaries for a certain period, with the remaining assets going to your designated charities. This can allow you to fulfill your philanthropic goals while still providing for your loved ones.
- Business Ownership – If you own a business, the right type of trust can enable you to ensure a smooth transition of ownership and management after you die. For instance, you can create a trust with provisions for business succession, specifying who will take over the business and how they should manage it. This can prevent disruptions in business operations and ensure your business continues running according to your vision. It can also provide financial support to your heirs and reduce the burden of managing a business during a difficult time.

How Kallio Law Firm, LLC, Can Help
Selecting the right law firm is essential if you’re considering creating a trust for your estate plan. Here’s why you should choose Kallio Law Firm, LLC, and how we can help.
Experienced Guidance
Founding attorney Eric Kallio brings extensive legal experience to the table, which he will use to ensure that your estate plan is comprehensive and legally sound. With years of hands-on experience in estate planning, Eric Kallio understands the unique nuances of Louisiana law and how to best protect your assets. His careful approach involves aligning every detail of your estate plan with your specific needs and goals so you can enjoy peace of mind for the future.
Tailored Solutions
At Kallio Law Firm, LLC, we believe in creating estate plans as unique as our clients. We know that every person’s situation is different, which is why we offer tailored solutions that address your specific needs. Rather than pushing a one-size-fits-all product, such as the often-recommended revocable living trust, we take the time to understand your circumstances. We explore all options to find the most effective and efficient plan for you. This could involve a trust you create in your will or another form of trust that better suits your needs and saves you money.
Client-Focused Approach
Choosing Kallio Law Firm, LLC, means partnering with a firm that prioritizes integrity, compassion, and client-focused solutions. We place our clients at the forefront of every decision we make and prioritize keeping you informed and involved. Our dedication to clarity and open communication sets us apart, and we aim to make the process as straightforward and stress-free as possible.
Comprehensive and Informed Counsel
Eric Kallio’s experience spans numerous legal practice areas, so he has the depth and breadth of knowledge to provide the comprehensive and informed counsel you need. Whether you are dealing with complex family dynamics, high-net-worth assets, or unique estate planning needs, Kallio Law Firm, LLC, has what it takes to guide you every step of the way. Our firm’s commitment to thorough and meticulous planning means we can help you effectively safeguard your assets and legacy for future generations.
By choosing Kallio Law Firm, LLC, you entrust your estate planning to a team that genuinely cares about your needs and is dedicated to providing exceptional legal representation. Let us help you create and implement a trust that protects your assets, honors your wishes, and provides security for your loved ones.
Contact a Louisiana Trust Planning Lawyer Now
Ready to take the next step in protecting your assets and planning for the future? Contact Kallio Law Firm, LLC, today for a free initial consultation. Our dedicated team is here to help you create a trust that meets your needs and secures your legacy.
