How Trusts Work to Preserve Your Privacy
In the era of social media and big data, it seems as if none of your personal information truly belongs to you or your family. However, there are steps that you can take to make sure that only a select few people know the terms of your estate plan. One such step is to create a trust instead of using a will.
Trusts Don’t Need to Be Recorded
A trust is a document that grants authority to a trustee to transfer assets or carry out other tasks. A will is a document that grants an executor to take similar actions only after a judge has verified its validity in a process known as probate. During probate, the will is recorded and interested parties are invited to review the will. These parties may be family members, friends or those who simply want something to gossip about. Only beneficiaries are allowed to know the details of a trust.
Even Beneficiaries Can Be Kept in the Dark
In some cases, it may be possible to keep the terms of a trust secret from a beneficiary. This can be helpful if the beneficiary is not yet old or mature enough to handle significant wealth. It can also provide protection from creditors and others who may try to sue a person who is set to come into significant wealth. It is worth noting that state law is murky as it relates to withholding information from a beneficiary. However, a trust administration lawyer Las Vegas may be able to provide insight into the matter.
Estate Plans Can Be Amended as Needed
If you don’t yet have a trust, you can create one at any time prior to your death. It may also be possible to use beneficiary designations to ensure that assets are transferred in a private and timely manner.