BY CHRISTOPHER YUGO | Monday, July 28, 2008

Q: How confidential are trusts? Is there anything I can do to make my
trust more confidential?

A: Confidentiality is one of the big selling points for trusts. If you
meet with an attorney, you will likely be told how estate files are
public records yet trusts are not.

All of that is true, to an extent. As a general rule, probate estate
files are public records, theoretically, available to the public.
Personally, I don't think it is quite that easy.

In order to view a probate file, you need to get past the clerk.
Before a person can gain access to a probate file, there may be some
questioning. Probate files are not sitting out on the counter
available to anyone who happens by. On the other hand, if you are
persistent, you will likely be able to review the file.

If a person gains access to a probate file, what they will find may
not be all that interesting anyway. Sure they will be able to see the
will and who is getting your stuff, but information such as social
security and bank account numbers are redacted and kept in a separate
file that is not available to the public.

Unlike wills, trusts are generally not presented for probate.
Therefore, there will not be a file at the clerk's office with a copy
of the trust in it.

A copy of the trust must be attached to the Indiana Inheritance Tax
Return when it is filed. However, an Inheritance Tax Return is
confidential and not available to the pubic for review.

Usually when the confidentiality of a trust is challenged, it's not at
the clerk's office, but rather at a place you wouldn't expect, your
bank. Before some banks will re-title bank accounts into the name of a
trust, they insist on seeing a copy of the trust. I once had a bank
tell me that they didn't need an entire copy of the trust, but wanted
to be the ones making the copies of the pages they did need. As silly
as it sounds, they got their way.

My position is that bank does not need an entire copy of the trust.
All they need is certain pages from the trust: front page, signature
page, successor trustee page and the powers of the trustee page(s).
The other pages are none of your bank's business and I would resist
turning over an entire copy. If your bank insists on seeing a full
copy of the trust, you have the option of providing them the
information or doing business somewhere else. Guess which one I would
choose?

On the other-hand, if you provide a copy of your trust to your bank,
it's not like it's going to be posted on the rate board. Banks are
subject to rules regarding confidentiality that are much stricter than
those imposed on the clerk's office.

If you are concerned about your neighbors knowing how much money you
left your family, you should consider using a trust. On the
other-hand, I think you'd be surprised how little your friends and
family actually care.

http://www.nwitimes.com/articles/2008/07/28//business/business/doce04585950e2d0c\
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