The Practical Planner Ep. "Navigating Louisiana's Estate Planning Landscape"

Released: March 19, 2026
Host: Anne Rhodes (Chief Legal Officer, wealth.com)
Guests: Addie Pruitt (Louisiana Estate Planning Attorney), Elena Lachter (Sr. Product Counsel, wealth.com)

Episode Overview

This episode dives into the unique complexities of estate planning in Louisiana—a state with distinctive legal traditions stemming from its civil law/Napoleonic code roots. The discussion unpacks how Louisiana's laws—especially forced heirship, usufructs, and the limited use of trusts—demand different strategies for advisors and clients alike. The conversation aims to provide actionable guidance for advisors serving Louisiana-based clients, including a close look at wealth.com's new Louisiana will workflow and what makes Louisiana estate planning so notably different from other states.

Key Discussion Points & Insights

1. Unique Louisiana Legal Terminology

(03:07 - 04:20)

• Testament instead of will.
• Succession instead of probate.

  "We call it a succession here... It's not at all like [the show], it's just what we call probate."
  – Addie Pruitt [03:42]

• Tutor replaces guardian (for minor children).
• Usufruct (distinct from a life estate): Grants an individual the right to use property and derive income from it, with children as "naked owners" (remaindermen).

  "We have this weird term called the usufruct. ... A little different."
  – Addie Pruitt [04:11]

2. Forced Heirship: The Louisiana Twist

(04:20 - 09:47)

• Forced Heirship: Unlike other states where children can be fully disinherited, Louisiana law requires a share go to “forced heirs.”
  • Applies to children under 24 or those (of any age) who are permanently incapacitated.
  • If one forced heir: must receive 25% of the estate; if two or more: 50% divided among them.
• Disinheriting: There are statutes (laws) allowing disinheritance in certain circumstances, e.g., if a child refuses contact for two years or attempts to harm the parent.
• Practical Issue: If all assets pass to a spouse, that can "effectively legally disinherit your kids at that step," creating unintended consequences.

  "At your own death, in that first level of... passing the assets by giving everything to your spouse, you are effectively legally disinheriting your kids at that step, which is kind of, like, weird."
  – Anne Rhodes [09:05]

3. Community Property and Inheritance Nuances

(07:34 - 09:59)

• Louisiana is a community property state—but assumptions about “what’s yours is mine” at death don’t hold.
  • Each spouse owns half the community property; you can only bequeath your own half.
  • No automatic joint tenancy (right of survivorship).
  • Many clients don’t understand these distinctions, which often leads to confusion.

4. Usufructs: Practical Applications and Pitfalls

(09:59 - 18:51)

• Usufruct mechanisms:
  • Spouses can be granted usufruct over assets (property, bank accounts, etc.), with children as naked owners.
  • Usufruct can terminate upon remarriage or death, not just at death.
• Blended families and disputes:
  • Forced heirship and usufruct cause greatest friction when children are from previous marriages or family situations are complicated.
  • Definition of forced heir can be broad—e.g., chronic illnesses like diabetes or depression may qualify.
• Practicalities:
  • Usufruct over consumables (e.g., cash): The surviving spouse must account to naked owners, but in reality, enforcement is weak.
  • Children (“naked owners”) become “unsecured creditors” if assets are spent.
• Trust as a workaround:
  • Testamentary trusts offer more structure and protection for minor children and blended families, even if some clients are “scared” of trusts.

"Estate planning in Louisiana is like... estate planning with one hand behind your back because you’re going to have to jump through all these hoops."
— Addie Pruitt [11:12]

5. Trusts in Louisiana: Limits on Flexibility

(19:34 - 24:38)

• Trusts less common: Unlike in states with complex/expensive probate, default estate planning is often done via a will, not a revocable trust.

  "We don't have a terrible probate process. So... my advice is that a last will and testament is usually where we start."
  – Addie Pruitt [20:02]

• Limited flexibility:
  • Beneficiaries are divided: Income beneficiaries vs. principal beneficiaries (the latter being the "anchor").
  • Principal beneficiaries must be expressly named and in being (alive) at trust creation—no long "dynasty trusts."
  • No powers of appointment: Major difference from other states—these cannot be used for flexibility or tax planning.
  • At most, trusts can stretch to three generations.

"I get a lot of 'I saw on YouTube or this TikTok video said I need a trust.' ... Let's talk about specifically what it's going to do and what it’s not going to do."
— Addie Pruitt [20:02]

6. Client Awareness & Education Challenges

(24:38 - 26:55)

• Most clients lack awareness of forced heirship, community property effects, or even succession unless they’ve gone through it with family.
• Advisors should expect to start from scratch and invest time explaining these foundational concepts.

"Even I'd say, like, when I went into law school, I didn't realize anything about forced heirship or... community property."
— Addie Pruitt [25:19]

7. Common Misconceptions & Essential Recommendations

(26:35 - End)

• Misconception: “I’ll leave everything to my spouse, and they'll take care of the kids.” In Louisiana, outright gifts to a spouse cannot be conditioned, and the spouse can use assets as they wish.
• Misconception: “My estate is small, so I don't need planning.” Reality: estate planning is about more than a will—it includes powers of attorney, guardianship planning, etc.
• Statutory Default: Everyone has an estate plan by default—the state’s intestacy laws—which may not align with personal wishes.

  "The state of Louisiana has an estate plan for you. You may not like it, but you got one."
  – Addie Pruitt [27:54]

Notable Quotes & Memorable Moments

• “You can think of it as... when you die, you know, my husband will get his 1/2 interest of the house, but I can give my 1/2 interest to whoever I want. And so people... just think it's like joint tenants with rights of survivorship, and it's not.” — Addie Pruitt [07:43]
• “The term naked owner... everyone is like, 'What are you talking about?' ... Don't be put off by the term 'naked'—it's the bottom line.” — Anne Rhodes [12:32]
• "The way most of the time we see the forced heirship issue come up is maybe a blended family situation... I’ve seen people claim diabetes as... being the forced heir." — Addie Pruitt [13:58]
• "A trust gives much more structure... I will try and convince [clients] to do that. But, you know, they see trust and they get scared and it doesn't always work." — Addie Pruitt [19:12]
• "Everybody does have an estate plan. You just don't know what it is because it's written in statute." — Elena Lachter [28:12]
• “If you are an advisor who has a client in Louisiana, be careful. … Make sure they have an estate plan. … In Louisiana, specifically, there's also a French flavor to it.” — Anne Rhodes [29:05]

Key Timestamps

• 03:07 — Terminology differences: Testament, succession, tutor, usufruct
• 04:20 — Forced heirship explained
• 07:34 — Community property in Louisiana context
• 09:05 — Legal disinheritance of children by default in spouse-by-spouse planning
• 09:59 — Usufruct as a solution and explanation
• 13:36 — Typical disputes, especially post-mortem and in blended families
• 17:39 — Usufruct practicalities with consumables (bank accounts, etc.)
• 19:34 — Trusts: When and why to use (or not) in Louisiana
• 22:08 — Louisiana trust law: No dynasty trusts, no powers of appointment
• 24:38 — How knowledgeable are Louisiana clients?
• 26:35 — Common misconceptions and final advice for advisors

Conclusion & Takeaways for Advisors

• Louisiana law is a world apart—advisors should never assume best practices from other states will automatically apply.
• Be aware of the forced heirship rules, how property passes between spouses and children, and the limitations on both trusts and beneficiary selection.
• Usufruct can sound bewildering but is essential to understand—functioning like an informal trust, but with unique pitfalls.
• Educate clients (and yourself!) about these differences, or work closely with local experts.
• Estate planning in Louisiana is essential even for those with “simple affairs”—and skipping it can have outsized, often negative, consequences for heirs.

Richly informative and peppered with practical anecdotes, this episode is a critical listen (or read) for any advisor serving families in Louisiana or those wanting to understand how radically state law can shape estate planning outcomes.