What Texas Lawyers Need to Know About Louisiana Law W
WHAT TEXAS LAWYERS NEED TO KNOW ABOUT LOUISIANA LAW
W. DERYL MEDLIN McMichael, Medlin, D’Anna, Wedgeworth & Lafargue, L.L.C. 400 Texas Street, Suite 1150 Shreveport, Louisiana 71101
State Bar of Texas 36th ANNUAL ESTATE PLANNING AND PROBATE COURSE June 27-29, 2012 San Antonio
CHAPTER 9 What Texas Lawyers Need to Know about Louisiana Law Chapter 9
TABLE OF CONTENTS
I. INTRODUCTORY REMARKS...... 1
II. “ONE LINERS” OF SIGNIFICANCE...... 1
III. IMPORTANT LOUISIANA CONCEPTS...... 2 A. Forced Heirship...... 2 B. Usufruct and Naked Ownership...... 2 C. Prescription...... 2 D. Authentic Act...... 2 E. Prohibited Substitution...... 2 F. Seizin...... 3
IV. LOUISIANA SOURCES OF LAW...... 3 A. Legislation...... 3 B. Custom...... 3 C. Jurisprudence...... 3 D. Absence of Legislation or Custon...... 3
V. FORCED HEIRSHIP...... 3 A. The Historic Concept...... 3 B. The Forced Heirs...... 4 1. Children under the Age of 24...... 4 2. Incapacitated Children of Any Age...... 4 3. Competent Grandchildren (of a Decedent)...... 4 4. Incapacitated Grandchildren (of a Decedent)...... 4 5. Certain Other Children (or Grandchildren of a Predeceased Child) of a Decedent...... 4 C. Calculation of the Amount Subject to the Forced Portion...... 4
VI. TESTAMENTS RECOGNIZED IN LOUISIANA...... 5 A. Notarial Testament...... 5 B. Olographic Testament...... 5 C. Military Testament...... 5 D. Foreign Testament...... 5
VII. PROCURATION AND MANDATE...... 5 A. Procuration...... 6 B. Mandate...... 6 C. Express Authority Required...... 6
VIII. LIVING WILL DECLARATION...... 6
IX. INHERITANCE BY INTESTACY...... 6 A. Inheritance of Separate Property...... 6 1. Descendants...... 6 2. Parents and Siblings...... 7 3. Siblings/No Living Parents...... 7 4. Parents/No Living Siblings...... 7 5. No Siblings/No Parents...... 7 6. No Siblings/No Parents/No Surviving Spouse...... 7 7. No Siblings, Parents, Surviving Spouse or Other Ascendants...... 7 8. No Living Next of Kin; Escheat...... 7 B. Inheritance of Community Property...... 7
i What Texas Lawyers Need to Know about Louisiana Law Chapter 9
1. Reversal of Surviving Spouse with Siblings and Parents...... 7 2. If Descendants, Usufruct of Surviving Spouse...... 7
X. FORMS OF SUCCESSION PROCEEDINGS...... 7 A. Unadministered Successions...... 7 B. Administered Successions...... 7 C. Independent Administration of Successions...... 8 D. Ancillary Successions...... 8
XI. UNDUE INFLUENCE, FRAUD AND DURESS...... 8 A. Legislative Background to the Rules Pertaining to Undue Influence...... 8 B. The Substantive Law of Undue Influence, Fraud and Duress...... 9
XII. TRUSTS...... 9 A. Trustees in Louisiana...... 9 B. Types of Trusts Recognized in the Trust Code...... 10 C. Exceptions to the Spendthrift Provision...... 10 D. Maximum Term of a Trust...... 10 E. Immovable Property in Trust...... 10
XIII. LIMITED LIABILITY COMPANIES AND LIMITED PARTNERSHIPS...... 10 A. Forming a Louisiana Limited Liability Company...... 11 B. Seizure of a Limited Liability Company Interest...... 11 C. Withdrawal from a Limited Liability Company...... 12 D. Withdrawal from a Limited Partnership...... 12
XIV. ASSET PROTECTION...... 14 A. The Louisiana Revocatory Action...... 14 B. The Louisiana Oblique Action...... 15 C. The Louisiana Simulation Action...... 15 D. Exempt Assets...... 16 1. The General Exemption Statute...... 16 2. The Homestead Exemption...... 16 3. Exemption of Insurance and Annuity Proceeds...... 16
XV. CONFLICT OF LAWS IN SUCCESSIONS...... 16 A. Validity of Testamentary Dispositions...... 17 B. Determination of Capacity and Vices of Consent...... 17 C. Capacity of Heir, Legatee or Donee to Receive...... 17 D. Interpretation of Testaments...... 17 E. Movables...... 17 F. Immovables Situated in Louisiana...... 18 G. Immovables Situated outside Louisiana...... 18
XVI. VARIOUS PRESCRIPTIVE PERIODS...... 18 A. Successions...... 19 1. Claims against Succession Representatives...... 19 2. Claims Involving Testaments...... 19 3. Claims Involving Inheritance Rights and Forced Heirship...... 19 B. Trusts...... 19
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