Transfer-on-Death Deed

TRANSFER-ON-DEATH DEED — LOUISIANA

⚠ IMPORTANT: TOD DEEDS FOR REAL PROPERTY ARE NOT AUTHORIZED IN LOUISIANA

TABLE OF CONTENTS

1. Current Legal Status
2. Why Louisiana Does Not Authorize TOD Deeds
3. TOD/POD Instruments Available in Louisiana
4. Alternative Estate Planning Methods for Real Property
5. Comparison of Alternatives
6. Louisiana Succession Overview
7. State-Specific Notes
8. Sources and References

1. CURRENT LEGAL STATUS

As of April 2, 2026, Louisiana does NOT recognize transfer-on-death deeds for real property.

Louisiana is one of a minority of states that does not permit TOD deeds for real estate. A TOD deed recorded in Louisiana would have no legal effect and would NOT transfer title upon death.

There is no pending legislation to authorize TOD deeds for real property in Louisiana.

2. WHY LOUISIANA DOES NOT AUTHORIZE TOD DEEDS

Louisiana's legal system is unique in the United States:

Civil Law Tradition

• Louisiana follows the civil law tradition rather than the common law
• Property transfers are governed by the Louisiana Civil Code, not common law deed principles
• The concept of a "deed" that takes effect at death conflicts with Louisiana's distinction between inter vivos (lifetime) and mortis causa (death) transfers

Forced Heirship

• Louisiana is the only state with forced heirship rules (La. C.C. Art. 1493 et seq.)
• Certain descendants (children under 24, or of any age if permanently incapacitated) are "forced heirs" entitled to a portion of the estate
• A TOD deed could conflict with forced heirship protections

Community Property

• Louisiana is a community property state (La. C.C. Art. 2325 et seq.)
• Community property rules complicate unilateral TOD transfers
• Both spouses must consent to transfers of community property

Succession Law

• Louisiana uses "succession" proceedings rather than "probate"
• The state has both testate (with will) and intestate (without will) succession frameworks
• Louisiana wills must follow specific forms (olographic or notarial) under the Civil Code

3. TOD/POD INSTRUMENTS AVAILABLE IN LOUISIANA

While real property cannot be transferred by TOD deed, Louisiana does authorize certain nonprobate transfers:

A. Bank Account POD/TOD Designations

• Statute: La. R.S. § 6:766.1 (effective August 1, 2016)
• Allows bank account holders to designate POD or TOD beneficiaries
• Extended to credit unions and savings and loan associations

B. Securities TOD Registration

• Statute: Louisiana Uniform TOD Security Registration Act (La. R.S. § 9:1641 et seq., effective January 1, 2022)
• Allows TOD registration for stocks, bonds, and brokerage accounts
• Follows the Uniform TOD Security Registration Act

C. Life Insurance and Retirement Accounts

• Beneficiary designations on life insurance, IRAs, and 401(k) plans pass outside succession

4. ALTERNATIVE ESTATE PLANNING METHODS FOR REAL PROPERTY

A. Revocable Living Trust (Inter Vivos Trust)

• Transfer property to a revocable trust during your lifetime
• Name beneficiaries to receive property upon your death
• Avoids succession proceedings for trust assets
• Louisiana recognizes inter vivos trusts under the Louisiana Trust Code (La. R.S. § 9:1721 et seq.)
• Cost: Higher upfront legal fees ($2,000–$4,000+)
• Benefit: Fully revocable; grantor retains control

B. Donation Inter Vivos with Usufruct

• Donate the property to the intended beneficiary during your lifetime
• Reserve a usufruct (right to use and enjoy) for your lifetime
• Property passes to the donee at death without succession
• Statute: La. C.C. Art. 535 et seq. (Usufruct)
• Risk: Irrevocable once accepted; potential gift tax consequences
• Risk: Must comply with forced heirship rules

C. Joint Ownership (Indivision)

• Add the intended beneficiary as a co-owner
• At death, the co-owner's share passes without succession
• Risk: Exposes property to co-owner's creditors
• Risk: Co-owner has right to demand partition
• Statute: La. C.C. Art. 797 et seq. (Co-Ownership)

D. Last Will and Testament (Succession)

• Execute a valid Louisiana will (olographic or notarial form)
• Property passes through succession proceedings
• Notarial Will: Executed before a notary and two witnesses (La. C.C. Art. 1577)
• Olographic Will: Entirely handwritten, dated, and signed (La. C.C. Art. 1575)
• Louisiana succession can be "simple" or "complex" depending on circumstances
• Cost of Succession: Varies; simpler than probate in many cases

E. Independent Administration (Simplified Succession)

• Louisiana allows independent administration of successions (La. C.C.P. Art. 3396.1 et seq.)
• Reduces court involvement and streamlines the process
• Available when all heirs consent and the will authorizes it

5. COMPARISON OF ALTERNATIVES

6. LOUISIANA SUCCESSION OVERVIEW

Forced Heirship (La. C.C. Art. 1493 et seq.)

• Forced heirs: Children under age 24 or children of any age who are permanently incapacitated
• Forced portion: One-fourth of the estate if one forced heir; one-half if two or more
• Disposable portion: The remainder may be disposed of freely

Community Property (La. C.C. Art. 2325 et seq.)

• Property acquired during marriage is generally community property
• Each spouse owns an undivided one-half interest
• Upon death, only the decedent's one-half passes through succession
• The surviving spouse retains his/her one-half interest

Usufruct of the Surviving Spouse

• If the deceased spouse dies intestate, the surviving spouse receives a usufruct over the community property until death or remarriage (La. C.C. Art. 890)
• If the deceased spouse dies testate, the will controls

7. STATE-SPECIFIC NOTES

Homestead Exemption

• Louisiana provides a homestead exemption of up to $75,000 of assessed value for owner-occupied residences (La. Const. Art. VII, § 20)

Tax Considerations

• Louisiana does NOT impose a state estate tax or inheritance tax
• Federal estate tax rules still apply
• Gift tax implications for lifetime transfers (donation inter vivos)

Medicaid / Long-Term Care

• Louisiana Medicaid estate recovery applies to the estate of a deceased Medicaid recipient
• A revocable trust does NOT protect assets from Medicaid recovery
• Irrevocable donations may trigger Medicaid look-back penalties (60-month look-back period)
• Consult an elder law attorney for Medicaid planning

Recording Requirements

• Louisiana real property transfers are recorded with the Clerk of Court in the parish where the property is located
• Act of donation or trust transfer must be executed in authentic form (before a notary and two witnesses) or by private act duly acknowledged

8. SOURCES AND REFERENCES

• Louisiana Civil Code: legis.la.gov
• La. R.S. § 6:766.1 (POD/TOD Bank Accounts): legis.la.gov
• La. R.S. § 9:1641 et seq. (Uniform TOD Security Registration Act): legis.la.gov
• Louisiana Trust Code (La. R.S. § 9:1721 et seq.): legis.la.gov
• La. C.C. Art. 1493 et seq. (Forced Heirship)
• La. C.C. Art. 2325 et seq. (Community Property)

This template is provided for informational and educational purposes only. It does not constitute legal advice. Transfer-on-death deeds for real property are NOT authorized in Louisiana. Consult a licensed Louisiana attorney before executing any estate planning document.

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