community property/inheritance

How is inheritance figured into community property.  I know that inheritance is separate to start, but how does a couple keep it separate if it is used to pay off existing loans, etc.

kgouner

In your example, it is fairly easy since using separate funds to pay off a loan would be simple to put into a contract at the time the loan is paid off.

So, rather than leave a potential issue down the road, the couple would spell out in writing (spouses can contract with each other in Louisiana) that the contributing spouse would be entitled to a reimbursal equal to the contribution in the event of a property division. You could, in the alternative, give the contributing spouse a larger ownership interest in the item that was mortgaged equal to the value of the contribution.

lex