A part of the probate process that might concern families is that certain personal information becomes a public record during proceedings. This article examines the scope of these disclosures and explains how a living trust can address privacy concerns.
Why probate opens the estate to the public
Probate is a court proceeding, which means the documents filed become part of the public record. When a will undergoes this process, the contents of the estate and the names of beneficiaries are no longer confidential.
Connecticut maintains a public database where anyone can search for probate cases involving estates and trusts. The Connecticut Probate Courts Case Lookup tool allows the public to access information about fiduciaries and case details for decedents’ estates dating back to 2011.
How a living trust provides protection
A revocable living trust is an arrangement that allows estate owners to hold and manage their assets during their lifetime. When properly funded, the assets in the trust can pass directly to beneficiaries without undergoing probate.
Because the trust agreement is not filed with the court, the specific terms of the estate plan, such as who the beneficiaries are and exactly what they will receive, remain confidential and out of public view.
What a living trust cannot protect
While a living trust offers significant privacy protections, it does have limitations worth considering. Assets not properly transferred into the trust will undergo probate, unless they have a designated beneficiary or are jointly owned.
If an individual purchases a new home or opens a bank account without adding it to the trust, those items may also be subject to the probate court. Another issue is that beneficiaries or trustees who dispute the trust terms may file legal proceedings.
A living trust also cannot accomplish everything a will can do. For example, estate owners still need a will to name a guardian for minor children or to direct assets that were not formally included in the trust.