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What is Tax Proration?

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Tax prorations are a part of every real estate transaction, but what does it mean and how is the math calculated? It’s really quite simple, and Jennifer Goens is here to explain.

Tax prorations are handled at every closing. The purpose is to split the share of the upcoming taxes between the buyer and the seller. This split is based off of each party’s length of ownership of the property.

Simply put, a seller pays “more” in taxes for the property in November rather than selling in March.

Once the taxes are split, the total amount goes to the buyer who is responsible for paying the tax bill in it’s entirety once the bills are issued at the end of the year.

Still have questions? Read more here or give us a call at 225.744.4241.

Why Do I Need A Power of Attorney in Louisiana?

In Louisiana, a power of attorney is a legal document that grants someone else the authority to act on your behalf in legal, financial, or health care matters. There are several reasons why having a power of attorney in Louisiana can be beneficial:

  1. Incapacity: A power of attorney allows you to designate someone to make decisions for you if you become incapacitated and are unable to make decisions for yourself. This can be crucial in ensuring that your affairs are taken care of according to your wishes.
  2. Convenience: Having a power of attorney can make it easier for someone you trust to handle your affairs on your behalf, especially if you are out of the state or country for an extended period of time.
  3. Avoiding Court Proceedings: Without a power of attorney in place, if you become incapacitated, your loved ones may have to go through costly and time-consuming court proceedings to gain the authority to make decisions on your behalf.
  4. Customization: With a power of attorney, you have the flexibility to tailor the document to meet your specific needs and circumstances. You can designate the specific powers you wish to grant to your chosen agent, whether it’s related to finances, health care, or other matters.

Overall, having a power of attorney in Louisiana can provide you with peace of mind knowing that someone you trust will be able to make decisions for you when you are unable to do so yourself. It’s important to consult with a legal professional to ensure that your power of attorney document is properly drafted and meets your specific requirements.

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Why Do You Need My Social Security Number & Marital History

As a buyer or seller there is a lot of personal and private details you have to share with multiple parties. A few of these being your full legal name, marriage history, and social security number. A title company must have these important pieces of information to ensure the transfer of clear title. During a title search, we are looking through a thorough history of the property, looking for liens & judgments, and looking for individuals with claim to the property. Without the full information of those buying or selling the property, the search may not be comprehensive, leading to potential issues in the future.

Let’s discuss why these three pieces of information are so important to the title company working the transaction and what exactly the information tells us.

  1. Full Legal Name
    • For males, the items we look for are suffixes (i.e. Jr., III, etc.). You probably don’t want any family members buying property under your name or give them any claim to the property you’re buying or selling.
    • For females, the items we look for are middle, maiden, and married names. Some women will drop their maiden name, while others will drop their middle name when getting married. These variations in someone’s name can add confusion or errors in a file. It’s best to give any/all names you have been associated with, even previous marriages.
  2. Marriage History
    • Although it’s a sensitive topic, it’s important to ensure that there are no legal complications when selling or purchasing a property. Therefore, we need to check if any previous spouse has a claim to the property. If there is a claim, both parties must sign certain paperwork to resolve the issue. Doing this search up-front can save a lot of heartache later.
  3. Social Security Number
    • To irrevocably prove that it’s you in this transaction, we need your social security number. This number leaves no room for interpretation and shows you are the rightful purchaser or seller.

Though this information is very private and sometimes difficult to share, it is necessary in a real estate transaction to successfully transfer title. We at Choice Title never share personal information and only communicate these items in secure email and portals.

Wills: What Are The Types?

A will and a living will are two different legal documents used to outline a person’s wishes, but they serve different purposes:

1. Will (Last Will and Testament):

A will is a legal document that specifies how a person’s assets and property should be distributed after their death.

It allows individuals to designate beneficiaries, name an executor to oversee the distribution of assets, and provide instructions for guardianship of minor children.

A will only takes effect upon the death of the individual.

2. Living Will (Advance Healthcare Directive):

A living will, also known as an advance healthcare directive, outlines an individual’s preferences for medical treatment in case they are unable to communicate their wishes in the future.

It typically addresses issues like life-prolonging medical interventions, organ donation, and preferences for end-of-life care.

A living will only comes into effect if the person becomes incapacitated and cannot make their own healthcare decisions.In summary, a will deals with the distribution of assets after death, while a living will addresses healthcare decisions in case of incapacity. It is recommended to have both documents in place to ensure your wishes are carried out both during and after your lifetime.

Usufruct

Usufruct in Louisiana law refers to the right to use and enjoy the property of another, without destroying or altering it. It allows a person (the usufructuary) the right to derive benefits from the property, such as receiving income or using the property, while the ownership remains with another person (the bare owner). In Louisiana, usufruct is a unique legal concept that has both civil law and common law elements. It can arise from a variety of situations, such as inheritance, marriage, or a legal agreement.