2.4 Importance of Opening a Succession

Generally, a succession is opened to recognize the successor’s ownership interest and legal possession of immovable and movable property. For successors, bank accounts, stock, and insurance proceeds are of particular interest. Banks will not allow successors to access accounts or safety deposit boxes held in the deceased’s name without proper succession documentation. Obtaining legal possession of immovable property resulting from a succession gives successors the power to sell and encumber the property and the ability to obtain mortgage loan modifications, which can be used to prevent foreclosure. Without a succession, successors are also unlikely to qualify for the homestead exemption, which could mean a significant property tax bill as opposed to no property tax liability.

The importance of opening a succession has been vividly illustrated in the wake of disasters such as Hurricane Katrina and the 2016 Baton Rouge floods. In order for homeowners to qualify for rebuilding funds, the Federal Emergency Management Agency and other programs have historically required proof of property ownership. Homeowners could not access those programs until successions were completed that recognized heirs’ ownership of the property that needed to be rebuilt. Fortunately, after Hurricane Ida hit southeastern Louisiana in 2021, FEMA relaxed its requirements so that certain indicia of ownership other than a succession would suffice to allow owners of inherited property to qualify for benefits. For instance, a copy of a not-yet-probated testament has been deemed acceptable evidence of ownership under the new FEMA guidelines. Because it is uncertain whether these more flexible standards will remain in effect following future disaster, it remains advisable for heirs to complete a succession.

Note, however, that the Small Business Administration (SBA) is still requiring that a succession be completed before a homeowner can access an SBA disaster recovery loan.