Many people are stunned to learn how much information is public record and easily accessible to anyone with internet access. Land records reveal where you live, how much you paid for your home and even photos of the house and land. When you pass away, during the probate process your will in its entirety is filed with the court and becomes a public record. Anyone can pull the estate file for years to come, read the will and see exactly how your assets were distributed and who you named as guardian for your minor children.
Even more detailed are the accounting records filed during the probate process that reveal all of your liabilities and your net worth down to the penny. Any creditor that files a claim against the estate will be catalogued and made searchable to future prying eyes. More than a simple invasion of privacy, this can open up your future heirs to predators and fraudulent scams.
What can be done to grant you more privacy in this digital age of public record searches? Rather than creating a will, you can create a living trust. Living trusts can be revocable or irrevocable and they bypass probate which aids in providing a layer of privacy. The trust document does not become a court record therefore it remains concealed only to the parties involved.
You can even fund the trust with any real property that you own. This means that the public property records will reflect the name of the trust as the legal owner of the property. If you choose to name your trust something other than your personal name, then a property search will not lead to you personally. Many celebrities use this strategy.
Three main ways trusts add a layer of privacy to your estate plan:
1. All real property owned by the trust is listed in public databases under the name of the trust rather than your personal name.
2. When you pass away, a trust does not have to go through the probate process and will not be filed as a court document. Since it is not public record, the contents of the trust document are only known to the parties involved. No one else will read about your assets, your chosen beneficiaries or your chosen guardians.
3. Since the trust document is not probated, there is less of a chance that it will be contested. A will contest is a very public court proceeding where all documents are filed and made public records. Using a trust helps to ensure privacy and makes challenges less likely.
If you have concerns about your financial affairs and estate planning issues becoming public records, contact the estate planning attorneys at Stouffer Legal in the Greater Baltimore area to discuss the various strategies that can be implemented to provide you more layers of privacy throughout the entire process. You can schedule an appointment by calling us at (443) 470-3599, emailing us at office@stoufferlegal.com, or register for an upcoming free webinar using the link below:
https://attendee.gotowebinar.com/register/9189240314338220815
https://attendee.gotowebinar.com/register/6295057429194620431
https://attendee.gotowebinar.com/register/854006492306640652
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