Privacy in Estate Planning

Is it important to you to keep your affairs private when you pass? If so, it is important to understand the tools that are used for distributing your assets upon death.

The simplest way to do estate planning, is to not plan. Meaning- Do nothing. if you like being in the majority, then this “no-plan” is for you. Is being in the majority a good thing? I guess that depends. However, being in the majority in estate planning puts you into default state rules and into everyone’s favorite place to be: Probate. (Probate is actually the last place anyone wants to end up.)

What is Probate you ask?

Probate is the PUBLIC process of dividing and distributing someone's property and money after the person dies is called probate, and without proper estate planning that is where you go. Without a will, the default rules of the particular state apply (called intestacy laws). It involves the court receiving information about everything you own, choosing someone to oversee the distribution process, and making decisions about items and money that may be special or sensitive to you and your loved ones. For people who value privacy, the entire probate process can be very intrusive.

You have a Will you say. That’s good. You are no longer part of the majority. However, a Will still places you firmly in the hands of…… you guessed it- Probate. Probate is applicable to people who have wills. However, if you die with a will in place, your wishes govern, to the extent possible, over the intestate laws.

So how do we avoid the very public realm of probate. The best solution is to use a trust.

As part of estate planning, individuals who value privacy can take advantage of the benefits of a living trust. A trust is a legal planning tool used to help privately manage an individual’s money and property for the benefit of a third party. One landmark trait of a trust is its ability to avoid probate. This tool is not restricted to the wealthy. If you value privacy, you may want to consider using a trust to transfer your property and accounts. In addition to providing privacy, trusts allow individuals who establish the trust to implement specific guidelines and restrictions that keep their hard-earned money and cherished possessions away from a beneficiary’s potential creditors or predators.

In the absence of proper planning, information regarding what someone owns becomes public, and the deceased person has no input regarding how these items are distributed.

Give us a call to discuss further.