To make a living trust in Louisiana, you need a written trust instrument signed by the settlor, a named trustee with real duties, and property actually transferred into the trust. Louisiana is a civil law state with its own Trust Code, and unlike most other states, a Louisiana trust is presumed irrevocable unless you expressly reserve the right to revoke it.
Key Takeaways
- Louisiana trusts are governed by the Louisiana Trust Code, La. R.S. Title 9, Chapter 2, not the Uniform Trust Code used elsewhere.
- A Louisiana trust is presumed irrevocable unless the trust instrument expressly reserves the settlor's right to revoke it.
- Louisiana's forced heirship rules can limit how much of your estate you may direct into a trust for certain children.
- As a community property state, funding a Louisiana trust with community assets generally needs both spouses' participation.
What Makes a Louisiana Trust Different From Other States?
Louisiana never adopted the Uniform Trust Code that governs trusts in most of the country. Instead, trusts are created and governed under the Louisiana Trust Code, La. R.S. 9:1721 and following, a distinct civil law framework built on the state's history of restricting private trusts before the modern code was adopted. The practical effect for a settlor is that Louisiana trust drafting and terminology differ from what you may read in national estate planning guides written around common law states.
Does a Louisiana Trust Automatically Let You Revoke It?
No, and this is the detail that trips up transplants from other states. Under Louisiana's Trust Code provisions on revocation, La. R.S. 9:2041, a Louisiana trust is irrevocable except to the extent the settlor expressly reserves the right to revoke it in the trust instrument itself. If you want a revocable living trust for probate avoidance and incapacity planning, the document must say so plainly. Silence on revocation defaults to irrevocable, the opposite default rule from Uniform Trust Code states.
Step-by-Step: Creating a Living Trust in Louisiana
- Decide on a revocable trust structure if your goal is probate avoidance and incapacity planning, and confirm the instrument expressly reserves your right to revoke or amend it.
- Name yourself as initial trustee if you want to retain control, and name at least one successor trustee.
- Draft the trust instrument with clear terms identifying beneficiaries, accounting for Louisiana's forced heirship rules where they apply.
- Sign the trust document before a notary with the required witnesses under Louisiana's general act execution rules.
- Fund the trust by retitling assets, coordinating with your spouse for any community property being transferred.
- Record a new act of transfer for Louisiana immovable property with the clerk of court or recorder in the parish where the property sits.
How Does Forced Heirship Affect a Louisiana Trust?
Louisiana is the only state that still enforces forced heirship, reserving a portion of your estate for certain children, generally those under 24 or with a qualifying disability, regardless of what your trust or will says. A trust funded without accounting for a forced heir's protected share can be challenged after your death. This is a Louisiana-specific issue that deserves review by a Louisiana succession attorney before you finalize how much property moves into your trust and on what terms.
How Does Community Property Affect Funding Your Trust?
Louisiana is a community property state, so property acquired during marriage generally belongs to both spouses jointly unless it qualifies as separate property. Moving community property into a trust, especially one that names only one spouse as settlor, can raise questions about whether the transfer was properly authorized by both spouses. Coordinate with your spouse and confirm each asset's classification before retitling it into the trust. Separate property owned before marriage, or received individually by gift or inheritance, generally does not carry this same requirement, but the line between separate and community property can be harder to draw than it sounds, especially for accounts that mixed funds over a long marriage. A Louisiana attorney can review your asset list and flag which transfers need both spouses' signatures before you retitle anything.
Who Should Serve as Your Successor Trustee?
Your successor trustee steps in if you become incapacitated or pass away, so choose someone organized and trustworthy who understands they may need to work with a Louisiana notary and the parish clerk of court for real estate matters. See our national guide on how to choose a successor trustee for the tradeoffs between naming family and a professional fiduciary.
Does a Living Trust Avoid Probate in Louisiana?
Louisiana does not use the word probate for its court process, calling it succession instead, but the same principle applies. A properly funded, revocable trust keeps titled assets out of the succession process at your death, since the trust already owns them. See how long does probate take in Louisiana to understand the succession timeline a funded trust helps your family skip.
What Are Common Mistakes Made With Louisiana Trusts?
- Assuming the trust is revocable by default, when Louisiana law presumes the opposite unless the instrument says otherwise.
- Funding the trust with community property without the other spouse's participation or consent.
- Ignoring forced heirship obligations to children who may be entitled to a protected share.
- Signing the trust but never executing and recording the acts of transfer for immovable property.
- Assuming national, common law trust guidance applies directly to a Louisiana civil law trust without adjustment.
Do You Still Need a Will in Louisiana If You Have a Trust?
Yes. Most Louisiana residents with a trust still sign a will, sometimes called a testament, to catch any asset never transferred into the trust and to address forced heirship obligations directly. See how to make a will in Louisiana for the state's specific execution requirements, and what happens if you die without a will in Louisiana to see how intestate succession and forced heirship interact without one.
For the full picture of your options, see estate planning in Louisiana.
FastWill's trust package includes guidance built around Louisiana's Trust Code requirements, including the express revocation language Louisiana law requires.
Frequently Asked Questions
Is a living trust revocable by default in Louisiana?
No. Louisiana presumes a trust is irrevocable unless the trust instrument expressly reserves the settlor's right to revoke it, the opposite default rule used in most other states.
Can I be my own trustee of my Louisiana living trust?
Yes, most settlors serve as their own trustee while alive and competent, naming a successor trustee to take over on incapacity or death.
Does a Louisiana trust get around forced heirship?
Not automatically. Forced heirship protections for qualifying children generally still apply to assets you control through a trust, so this needs specific planning with a Louisiana succession attorney rather than assumption.
What happens to property I forget to transfer into my Louisiana trust?
It stays in your individual or community name and typically passes through the Louisiana succession process, often addressed afterward by your will.
Is a living trust necessary if my Louisiana estate is small?
Not necessarily. Louisiana offers a small succession process for qualifying estates, so a trust is more valuable if you own real estate, want stronger incapacity planning, or want to avoid the succession process entirely.
