A revocable living trust is one of the private ways to keep your final wishes away from prying eyes.
Will-based inheritance plans become public court records
When you decide to draft a final will, the questions you will need to answer include who should get your personal belongings (including jewelry, collectibles, and artwork), who should receive your cash, investments, real estate, and business interests, and who should ensure that your plan is executed as you laid out. However, one important aspect is often overlooked, which is that in order to execute the written instructions you laid out in your will, it must be submitted to your local court for probate.
What is wrong with submitting your will to the local court? First and foremost, once your will is submitted to the local court, it becomes a public court record. This means that once the will is filed, anyone can go to the local court and request to see it.
So, what is wrong with anyone being able to see your probate file? Because the file will reveal what you own, who you owe, and who will inherit your estate. This will include the name and address of each heir, as well as the name and address of your executor.
When a final will is filed for probate, anyone, including your neighbors, overlooked heirs, and debt collection agencies, can read your will and any other documents that were submitted to the local court.
Trust-based inheritance plans remain private
A revocable living trust is a private contract established between you as the trust creator and the beneficiary for your own benefit. While you are alive and well, you will have full authority to make all decisions regarding the trust property, including how to invest it and how to spend it on your behalf as a beneficiary. If you become mentally incapacitated, the person you chose as your disability trustee will take on the responsibility of making investment and spending decisions. After your death, the person you selected as your administrative executor will be responsible for paying your final bills from the trust property, and then distributing what remains to the beneficiaries you selected in the trust agreement.
How does a revocable living trust keep your final wishes private?
So what is the reason that a revocable living trust keeps your final wishes – in fact, all of your wishes – private and remains personal matters hidden from the public eye? The reason for this is the key difference between a final will and a revocable living trust, which is that all three phases described above of the trust (while you are alive and well, while you are alive but not well, and after your death) can be executed without needing to submit the trust to the local court for probate.
What should you do?
If maintaining the privacy of your family’s affairs and financial matters is a concern for you, you should consider making a revocable living trust the governing document of your estate plan. Of course, a revocable living trust provides other benefits as well, but in some cases, a trust may not be necessary to keep your affairs private. You will need to consult an estate planning attorney who knows your state’s laws and can look at your specific situation to determine whether a revocable living trust is the right choice for you.
Source: https://www.thebalancemoney.com/how-to-keep-your-estate-plan-private-3505375
“`
Leave a Reply