How a Trust Keeps Your Estate Details Private
Introduction
When someone passes it is an emotional time filled with mourning and difficult feelings. Unfortunately there is also significant work to be done. When a person passes with a simple will or no estate planning instrument, their belongings become their “estate”. In order to distribute these items a special court called a Probate Court will direct the distributions based on the person's will or if they have no will, the laws of the jurisdiction they reside in. This process is called “Probate”.
How Probate Can Compromise Privacy
Probate can be a long and difficult process typically requiring an attorney to handle the various filings, motions, and notices necessary to close out the estate. These legal fees can cost the estate thousands of dollars. Because probate is a court proceeding, the details of the probate are public and can be accessed by various people. This allows people to see intimate details about the deceased’s estate including what assets they owned, who they owed money to, and who they left their property to. Having these details exposed to the public can make an already emotional time more difficult and can distract people from their mourning process.
How a Trust Preserves Privacy
Trusts can help families avoid costly probate fees and keep the details of the deceased's estate private. Unlike a will, trusts become effective the moment a person passes. This means that they do not need to be submitted to probate and can make the distribution process much smoother. Because the probate process is avoided, no estate details will become public, helping preserve the privacy of the family and allowing them to focus on mourning their loved one.
In addition to added privacy the trust will also allow for a trustee who can distribute to the beneficiaries of the trust at future times as directed by the original document. For example, a trust can prevent the trustee from distributing money to a child or their guardian before they reach a specific age. This allows the creator of the trust more control over what happens to their property following their passing.
By working with an attorney people can create a trust plan that helps preserve their privacy and save money on attorney’s fees through probate. If you have any further questions feel free to schedule a free consultation today!