§1026. Interdicts; donations; limitations; net worth

            A. Notwithstanding the provisions of R.S. 9:1022 through 1024 and pursuant to Subsection C of this Section, upon request of the curator and undercurator, the court may authorize a curator, in the name of and on behalf of an interdict with a direct or beneficial net worth of one hundred million dollars or more as a trust beneficiary or otherwise, to make the following donations:

            (1) Subject to Paragraph (2) of this Subsection and Subsection C of this Section, other than to charitable recipients, an interdict may make, directly or indirectly, donations inter vivos of money and other assets from surplus funds of the interdict utilizing all or a portion of the interdict's annual federal gift tax exclusions pursuant to 26 U.S.C. 2503(b) and the interdict's lifetime credits and exemptions from federal estate tax and the tax on generation skipping transfers, pursuant to 26 U.S.C. 2010 and 2631 et seq., to one or more of the following: an interdict's direct descendant, sibling, descendant of a sibling, stepsibling, descendant of a stepsibling, or step-descendant of a sibling, or to one or more trusts for the benefit of the recipient or one or more class trusts for the benefit of such present and future recipients, including to grantor trusts. Additional donations inter vivos pursuant to this Paragraph may be made, except to a stepsibling, descendant of a stepsibling, step-descendant of a sibling, or a trust for the benefit of a stepsibling or step-descendant of a sibling, subject to a maximum lifetime limit of five times the prevailing federal estate tax lifetime exemption equivalent.

            (2) Inter vivos noncharitable donations authorized in Paragraph (1) of this Subsection in the name or on behalf of an interdict shall be made in equal amounts to each member of the same class and generation descending from a common parent. Inter vivos noncharitable donations authorized in Paragraph (1) of this Subsection and made to nieces and nephews, including step-nieces and step-nephews, with the same parent shall be made equally to each descendant of that parent of the same generation.

            (3) If the federal gift tax has been repealed, cumulative inter vivos transfers otherwise authorized in Paragraph (1) of this Subsection are permitted subject to an aggregate lifetime amount equal to six hundred percent of the highest gift tax lifetime exemption in effect prior to the gift tax being repealed. Annual exclusion donations may be made subject to the provisions of this Section after donations in the maximum allowable amounts pursuant to Paragraph (1) of this Subsection.

            (4) Noncharitable testamentary dispositions made upon the death of the interdict, other than through intestacy, including a self-settled trust in which the interdict is a beneficiary may only be made to a direct descendant, sibling, descendant of a sibling of an interdict, one or more trusts for the benefit of such recipients, or one or more class trusts for the benefit of such present and future recipients, including to grantor trusts, but may not be made to a stepsibling, descendant of a stepsibling, or trust for the benefit of such recipient. Testamentary dispositions pursuant to this Paragraph shall be made in equal amounts to recipients of the same class and generation, except that a catch-up bequest may be made to an interdict's direct descendant, sibling, or descendant of a sibling to equalize a donation to a permissible recipient born after inter vivos donations were made to other recipients of the same degree.

            (5) Nothing in this Section shall be construed to annul or supersede a lawful will or trust in effect prior to a person being interdicted.

            (6) Inter vivos charitable dispositions may be made to charitable recipients, including split interest trusts, donor-advised funds, charitable trusts, and private foundations, even if such donees are controlled by a parent, direct descendant, sibling, or descendant of a sibling of an interdict, up to a maximum annual aggregate amount of ten percent of the interdict's net worth in excess of one hundred million dollars. An inter vivos charitable disposition pursuant to this Paragraph shall not be allowed if the interdict's net worth is less than one hundred million dollars.

            B. Inter vivos donations, testamentary and charitable dispositions, including a charitable remainder trust, to one or more charities may be made that take effect upon the death of the interdict provided that such charitable donations shall not exceed an aggregate of seventy-five percent of the interdict's gross estate at the time of his death for federal estate tax reporting purposes.

            C.(1) The court may authorize a curator to make a donation pursuant to Subsection A of this Section when the procedure provided for in Code of Civil Procedure Articles 4271 and 4566 is complied with and the donation does not materially impair the financial condition of the interdict and is not likely to deprive the interdict of sufficient funds to provide for his future needs and support. The court may require the curator to provide documentation to substantiate the request to make a donation and place the information obtained under seal.

            (2) For purposes of this Subsection, it is presumed that a donation does not materially impair the financial condition of the interdict or deprive the interdict of sufficient resources if the curator shows that the direct or beneficial net worth of the interdict is not less than one hundred million dollars as a trust beneficiary or otherwise, after subtracting the value of the donation.

            Acts 2026, No. 11, §2.