How to treat property that passed automatically to a surviving parent under Louisiana succession practice

Short answer: In Louisiana, assets that pass automatically to a surviving joint owner or a named beneficiary (for example, joint bank accounts titled with a right of survivorship, pay-on-death (POD)/transfer-on-death (TOD) accounts, life insurance proceeds, or retirement accounts with a designated beneficiary) generally pass outside of the formal succession and are not treated as part of the decedent’s probate estate for purposes of the succession inventory. However, those transfers can still matter to heirs and creditors and may be subject to challenge (for example, under forced‑heirship rules or reduction actions). If you are preparing an inventory as the succession representative, document these transfers and get legal advice.

Detailed answer — what happens and what you should do

Louisiana separates property that constitutes the succession estate from property that passes outside the succession because of a survivorship feature or beneficiary designation. Typical non‑probate passes include:

Joint accounts or property that pass by right of survivorship to the surviving joint owner
Payable‑on‑death (POD) or transfer‑on‑death (TOD) bank or investment accounts
Life insurance proceeds and many retirement account benefits paid to a named beneficiary
Property transferred by a valid inter vivos (during life) deed or title change that names a surviving owner

Because those assets pass directly to the named survivor or beneficiary, they generally are not assets of the decedent’s succession to be distributed by the succession process and therefore are not typically listed as estate property on the formal inventory. That said, three important caveats apply:

Potential claims by heirs: Louisiana law includes protections for forced heirs (certain descendants who qualify under the Civil Code). Transfers made to defeat forced‑heirship rights or to defraud heirs may be subject to reduction or other remedies. That means a transfer that looks like a non‑probate gift could be challenged and effectively brought into the mass available to satisfy forced heirship claims. See the succession and forced‑heirship provisions of the Louisiana Civil Code for background (search the Louisiana statutes for “succession” and “forced heirship”). For general reference see: https://www.legis.la.gov/Legis/LawSearch.aspx?searchText=succession and https://www.legis.la.gov/Legis/LawSearch.aspx?searchText=forced%20heir
Creditors and accounting obligations: If you are the succession representative (personal representative, administrator, or liquidator), courts and creditors may expect transparency about transfers outside the succession. Failing to disclose known non‑probate transfers can create disputes or liability. Many practitioners attach a statement or exhibit to the formal inventory that lists non‑probate transfers and shows supporting documents (account title, beneficiary designation, death certificate).
Title and proof: Even when an asset passes outside succession, you should obtain and keep documentation showing the transfer occurred (bank statements, beneficiary forms, title documents, and the decedent’s death certificate). Institutions often require specific affidavits or forms to release funds; a signed death certificate and proof of beneficiary status are common.

Practical steps if you are preparing—or helping prepare—an inventory

Identify each asset and how title or benefits pass: check account titles, deeds, beneficiary designation forms, and retirement plan documents.
Obtain supporting documents: recent statements, beneficiary designation forms, copies of the deed, and certified copies of the death certificate.
If you are the succession representative, include an exhibit or separate section in the inventory that lists known non‑probate transfers and attaches documentation. Even if not strictly part of the estate, disclosing them reduces later disputes.
If you suspect a transfer was intended to defeat heirs or creditors, consult a Louisiana succession attorney promptly—timing and procedural steps matter for filing any challenge.
When in doubt, ask the court clerk or consult local practice resources. Different courts may have local inventory forms or expectations about disclosure of non‑probate transfers.

When you should definitely get a Louisiana lawyer involved

If there are potential forced heirs (minor children or permanently incapacitated descendants) who might have a claim
If large transfers happened shortly before death that could be viewed as fraudulent or intended to defeat heirs
If creditors are asserting claims or if you face disputes from other heirs or the named beneficiary
If you are acting as the official succession representative and are unsure what to disclose

Relevant state law resources

For statutory language and more detail, consult the Louisiana Legislature’s online resources (searchable by topic):

General succession provisions and civil code: https://www.legis.la.gov/Legis/LawSearch.aspx?searchText=succession
Forced‑heirship and testamentary limitations: https://www.legis.la.gov/Legis/LawSearch.aspx?searchText=forced%20heir

Helpful hints

Keep careful records. Even transfers that pass outside succession are important to document.
Label any inventory entries that are not estate property (e.g., “passed outside of succession — POD to Jane Doe”) and attach proof.
Don’t rely solely on account names — get the beneficiary designation forms or title documents showing the survivorship language.
Act quickly if you suspect a transfer was made to defeat heirs — certain remedies have time limits.
If you are personally handling the succession, talk with a lawyer about whether to include a note about non‑probate transfers; full disclosure often prevents later claims of concealment.

Disclaimer: I am not a lawyer. This article provides general information about Louisiana succession practice and is not legal advice. For guidance about a specific situation, consult a licensed Louisiana attorney who handles successions.