A succession can create a frustrating situation for heirs. You may inherit a house worth a significant amount of money but still need cash upfront for court costs, attorney fees and other expenses before everything is settled. Fortunately, paying for a succession in Louisiana does not always mean paying those costs out of your own pocket. Depending on the estate and what you plan to do with the property, you may have several options.
Key Takeaways
- Many succession costs can be paid from the estate.
- Expenses may include court fees, attorney fees, appraisal fees and fees for a succession representative.
- An heir may sometimes pay certain costs upfront and receive credit for them when the estate is divided.
- Some smaller estates may qualify for a simpler succession process.
- If you sell an inherited house to Abbott Price, we can front the succession costs and deduct them from the purchase price at closing.
Who Pays for a Succession in Louisiana?
In many cases, the succession itself pays the expenses required to settle the estate.
For example, state law says that court costs for succession proceedings handled ex parte are paid as administration expenses. If the succession involves a contested proceeding, the rules can differ, and the court may determine who is responsible for those costs.
Attorney fees and other professional costs may also count as succession expenses. The state’s succession rules address legal, accounting and appraisal fees that arise after a person’s death when determining how estate expenses are handled.
In other words, inheriting property does not automatically mean you have to personally pay every succession cost.
What Does a Succession Cost in Louisiana?
There is no set price for a Louisiana succession. The total depends on the estate, whether there is a will, how many heirs are involved and whether anyone disputes the succession.
Common expenses may include:
- Court filing and clerk fees
- Attorney fees
- Appraisal or accounting fees
- Recording and document costs
- Succession representative fees
- Costs tied to managing or selling estate property
Louisiana law also sets rules for compensation paid to an executor or administrator. If the will does not set the amount and the parties have not agreed to something different, Louisiana Code of Civil Procedure Article 3351 generally allows compensation equal to 2.5% of the inventory value.
That does not mean every estate will have this exact cost. Some successions need less administration, and fees may vary based on the situation.
What If the Estate Does Not Have Cash To Pay for Succession?
An estate can own valuable property without having much cash available. For example, a parent may leave behind a house worth hundreds of thousands of dollars but very little money in a bank account.
Families may have several options in this situation.
An Heir May Pay Some Expenses Upfront
In some cases, an heir may pay certain succession expenses and account for those costs when the estate is divided. Anyone paying expenses for the estate should keep detailed records and talk with the attorney handling the succession about how those costs will be treated.
Estate Property May Be Sold
Louisiana law allows a succession representative to sell estate property for certain purposes, including paying debts, when the proper court approval is obtained. If a house is the estate’s main asset, selling it can turn that property into cash that can be used to settle expenses and divide the remaining funds among the heirs.
The Estate May Qualify as a Small Succession
Louisiana has a simpler process for some smaller estates.
Under current Louisiana law, an estate may fall under the definition of a small succession if the person lived in Louisiana at the time of death and the estate has a gross value of $200,000 or less. Other rules also apply, so the value of the estate is not the only factor.
An attorney can help determine whether the estate qualifies and whether a small succession could make the process easier or less expensive.
What Happens If You Want To Sell an Inherited House?
Succession often becomes a bigger concern when a home makes up most of the estate.
If you are considering selling an inherited property, you can begin exploring your selling options while the succession process is underway. You do not necessarily need to wait until every step is finished before talking with a buyer and preparing for the sale.
Selling may be especially appealing if the property is sitting vacant or creating ongoing expenses for insurance, taxes, utilities, maintenance or repairs.
Need Help Paying for a Succession in Louisiana?
If succession costs are making it harder to sell an inherited house, you may not have to pay them upfront. Abbott Price can front the succession costs and deduct them from the purchase price at closing. That means nothing comes out of your pocket upfront, and you do not have to wait for the succession to be finished before starting the sale process.
If you are trying to decide how to handle an inherited property, learn more about Abbott Price’s succession and probate process and see how we can help you move forward with the sale.
