How do trusts differ from wills regarding privacy?

Trusts typically provide more privacy since they do not go through probate, whereas wills become public records. This key distinction lies in the probate process, which is a court-supervised procedure for validating a will and administering a decedent's estate. When a will is probated, it becomes a matter of public record, meaning that anyone can access the details of the will, including the beneficiaries, the assets involved, and the distribution plan.

In contrast, trusts generally avoid this public scrutiny. A trust is a private agreement that outlines how a settlor's assets will be handled during their lifetime and after their death without the need for court involvement. As a result, the terms and assets of the trust remain confidential, accessible only to the trustee and the beneficiaries, unless the settlor chooses to disclose that information.

This advantage of privacy associated with trusts is a significant factor for individuals looking to maintain discretion regarding their estate planning and asset distribution plans.