Whether or not we plan to do so, each of us will eventually face death. However, by planning, we can make our passing easier in many ways for those we leave behind. This article focuses on privacy.
Let’s look at two people who die in the same car accident. It’s a tragedy for them and their families, but the impact on their loved ones is different. Each of the deceased had a house and $300,000 of other assets. The first, John, held all his assets in his own individual name. The second, Becky, had planned her estate with an estate planning attorney and had all her assets in a trust.
John’s assets will have to go through the probate process, which is the process of paying valid creditors and changing the title of assets in the name of the deceased person to the rightful recipients. If John didn’t have a will, the rightful recipients would be his intestate heirs under state law. These may or may not be the people John wanted to benefit. For example, if he died unmarried and without descendants, his assets might get divided equally among his siblings, including the brother with whom he didn’t have a relationship. Most importantly, probate is a public court process. As such, with rare exceptions, anyone could look at court records and see whether John had left a will and could ask to see his will. They could see who his creditors were. They could see if he had left some of his assets to someone who might have been a girlfriend or boyfriend. Nosy neighbors and scam artists could discover exactly what John’s assets were and to whom they were going. John’s loved ones could be the victims of scams right when they were most vulnerable. John’s loved ones and heirs, who might be young adults, might be approached by scam artists and swindled out of their inheritances. This certainly would not be what John would want to happen.
On the other hand, Becky had visited an estate planning attorney and had her assets were placed in a trust. As a result, Becky’s assets didn’t need to go through the public probate process. Her assets went to her loved ones in the manner and shares she had deemed appropriate. Her loved ones could grieve in private without being pestered by the uncaring and unscrupulous.
While both John and Becky died tragically and unexpectedly, Becky’s planning made it easier for her loved ones to carry on with their lives.