A well-thought-out estate plan should accomplish more than simply detailing how your assets will be distributed after your death. One of the additional objectives many individuals include in an estate plan is the goal of avoiding probate. There are many reasons to steer clear of probate, not the least of which is the public nature of the process. With that in mind, the attorneys at Wilcox Attorneys, PA discuss strategies to help you keep your estate plan private in Arkansas.
What Happens During Probate?
When a person dies, the law considers everything they owned at the time of death as part of their “estate.” Probate is the legal process through which this estate is administered and eventually settled. It involves several steps, including identifying the assets owned by the decedent, determining their value, notifying creditors, paying off valid debts and taxes, and distributing what remains to the designated heirs or beneficiaries. If a Last Will and Testament was left behind, probate also includes proving its validity and giving those who wish to contest it the opportunity to do so. While this process serves an important legal function, it can be time-consuming, expensive, and, perhaps most concerning to some, very public. Documents filed with the probate court in Arkansas typically become part of the public record, including your Will and a list of estate assets. As a result, anyone who is curious enough can access information about what you owned at the time of your death, who will receive your estate assets, and when they might receive them.
Why Privacy Matters in Estate Planning
Once a Will is filed with the probate court in Arkansas, it becomes available for public inspection. This means that the details of your estate and your decisions about who should inherit from you are no longer private matters. As such, the loss of privacy is a key reason many people seek to avoid probate altogether by incorporating probate avoidance techniques into their estate plan.
Maintaining family harmony is one reason to keep the terms of your estate plan private. If the terms of your Will leave unequal distributions to family members, exclude family members or loved ones, or reflect decisions that might trigger emotional responses, making those terms public can exacerbate tensions among your loved ones after you are gone. Instead of promoting harmony, the transparency of probate may invite resentment or even legal disputes.
Privacy concerns, however, can go beyond family dynamics. When the value of your estate or the identities of your beneficiaries become public knowledge, this information may be used by marketers and solicitors. Your loved ones may begin receiving offers, advertisements, and even solicitations from companies that know they are about to receive or have already received. an inheritance. Consequently, protecting your privacy may be necessary to protect their privacy.
Unfortunately, many people are unaware of how their heirs might be impacted by the openness of probate proceedings. Solicitors often target individuals listed in probate filings. Some businesses aggressively market services such as financial planning, funeral arrangements, and travel packages. Others may promote predatory financial offers, such as advances on an expected inheritance. These “inheritance advance” companies typically offer to give beneficiaries a portion of their inheritance upfront in exchange for a legal right to the full amount when it is distributed. In most cases, the amount actually received by the beneficiary is only a small fraction of the inheritance, and the remainder is collected by the company as profit.
Additionally, beneficiaries who are set to inherit real property often become the target of real estate agents and developers. These professionals may begin contacting beneficiaries with offers to purchase property before they have even had time to grieve or settle the estate. Being approached by strangers wanting to buy inherited property can be overwhelming and distressing, particularly when families are still coping with a recent loss.
How a Trust Can Help Keep Your Estate Plan Private in Arkansas
Fortunately, there are estate planning strategies that can help keep your plans out of the public eye. One of the most effective ways to maintain privacy is to use a revocable living trust as the primary vehicle for the distribution of your assets. A trust allows you to transfer ownership of property during your lifetime, while continuing to manage those assets as the Trustee. When you die, a Successor Trustee steps in to carry out your instructions without the need for probate. Because a trust operates outside the probate system, it does not become part of the public record in Arkansas. This means the details about your assets, debts, and final wishes remain confidential. Beneficiaries do not become subject to public scrutiny, and your personal decisions remain shielded from view. Trusts also offer greater control, flexibility, and the ability to make distributions over time, further reducing the chances that beneficiaries will fall prey to financial predators.
Can We Help Keep Your Arkansas Estate Plan Private?
For additional information, please sign up for one of our FREE estate planning seminars. If you would like assistance keeping your estate plan private in Arkansas, contact the experienced Washington County, Fayetteville, Springdale, Rogers, Bentonville, and Northwest Arkansas estate planning attorneys at Wilcox Attorneys, PA by calling 479-443-0062 to schedule your appointment today.
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