Nosy Neighbor Nellie Can Find Out About Your Probate

Most people think of probate (the process of collecting, managing, and distributing a deceased person’s money and property) as a private process. However, because probate involves the court system, most filings become a matter of public record. That means your nosy neighbor Nellie can simply go to the courthouse or hop online to learn all about your probate estate, including what is in your will, who will inherit from you and how, as well as information about the accounts and property passing through probate and their values. Nosy Nellie and your probate are connected by the accessibility of public records.

Not Just Nellie Has Access . . .

After a death, most states require whoever has possession of the deceased person’s will to file it with the probate court within a specified time—even if there will not be any probate court proceedings. While Nellie may be an annoyance and have no reason to view the information other than curiosity, others can access your public records and potentially make your beneficiaries’ lives miserable, highlighting the risks a predatory nosy Nellie could cause to your beneficiaries of your probate estate by nosing about:

• Financial predators. While today’s digital world is convenient, it is also dangerous. Financial predators can find ways to access sensitive personal information online. Then they can claim the decedent owed them money, submitting fake invoices or demands for payment to the executor of the estate. Since courts are part of a bureaucratic process that often moves at a glacial pace, months can elapse before anyone realizes that your beneficiaries have been swindled.

• Charities. Even the most well-meaning charities can become annoying when money passes through probate. This is especially common when charities contact beneficiaries and pressure them to “do the right thing” with their inheritance by making donations in honor of their loved one. 

• Will challengers. Since a will filed with the probate court becomes part of the public record, people who believe they have an interest (whether valid or invalid) in your estate can access the document and potentially challenge the will. This can result in added costs and time as your loved ones defend against what may amount to a frivolous claim.

• Aggressive salespeople. Some insurance agents, financial advisors, or real estate agents track probate filings to target vulnerable beneficiaries to persuade them to buy financial products or sell inherited property below market value.

Avoid the “Nosy Nellie” Factor with a Trust

Trusts are not typically filed with the court unless someone challenges them—and sometimes not even then. Most people’s trust documents will never be sent to the probate court. Nosy Nellie’s impact on your probate can be avoided with a trust, as they will never be available to anyone other than the individuals and charities named as beneficiaries in the trust. Unlike a probate estate, courts are generally uninvolved in the trust administration process. If you want to protect your privacy and avoid intrusions from busybodies and predators, consider creating a trust. It is one of the most effective ways to keep your legal and financial affairs private from everyone not directly involved.

Book a Discovery Call today to discuss whether creating a trust that helps avoid probate and keeps your family and financial affairs private might make sense for you.