If you are planning to create a trust, you probably want the information contained in the trust to remain confidential. It is also important to keep in mind that most states require that trust agreements be recorded with the local government. However, Delaware does not require this. If you plan to make a trust in Delaware, there are several things you should keep in mind.
The purpose of trust confidentiality is to protect beneficiaries from any unwanted disclosures. While a trustee has the right to reveal information about trust assets to beneficiaries, there are times when it would not be in the beneficiary’s best interests. For example, a trust letter may contain information that could lead to a dispute. This type of dispute often results when people contest who should receive a certain asset. Creating a trust or will with clear instructions will help avoid these conflicts.
While creating an estate plan can be a challenging task, the process of creating a trust can help you keep your wishes private. A trust allows you to avoid the need to disclose everything to your family and friends. A trust is not required to be filed with the county court. This makes it much more private than a will. By contrast, a will must be open to the public. If you want to keep your estate plan confidential, a trust does not have to be filed with the county court.
In Jersey, courts can meet in private for certain non-contentious trust proceedings, such as an application to vary a trust’s terms, or a direction to the trustee. The documents that are disclosed in such proceedings are under a confidentiality embargo. A party who breaches this embargo is in contempt of court.
Clients often ask us whether they should keep their wills and trusts confidential. Whether this is the best choice is up to the client. You can discuss the details of confidentiality before you sign them. If you choose to keep them confidential, you should ensure that the successor trustees keep it confidential. Your attorney must also be bound by confidentiality laws. They should not disclose any information that would reveal the identity of the client. In addition, you should avoid allowing anyone else to read the documents.
In addition to confidentiality laws, trusts also have specific provisions that govern the trustees’ obligations. For example, trustees cannot disclose the identity of the beneficiaries or information about the trust’s assets without the consent of the beneficiaries. This is especially important for trustees who are also beneficiaries. In addition, the trustee must comply with the beneficiary’s requests regarding the nature of trust assets.
The beneficiaries of an irrevocable trust also have the right to access information and make sure the trustee is acting in the best interests of the beneficiaries. However, the rights of each beneficiary will vary. There are two types of beneficiaries in a trust: current beneficiaries and remainder beneficiaries. The current beneficiaries receive the trust’s income and distributions, while the remainder beneficiaries receive the trust’s assets after the current beneficiaries die.