Probate

Probate is Public

When a husband and wife discuss the details of their estate and who will receive their estate after they are gone, it is generally a private conversation. It is difficult to imagine anything more private than deciding how you are going to divide your estate upon your death, how much money you have, how much you owe and how much your personal items are worth. If you are single, you might want to discuss your estate with your attorney or your children, but certainly not other people. Unfortunately, the privacy of these discussions become public record the day your Will and inventory record are filed with the probate clerk's office. For $1.00 per page, anyone can go to the probate clerk and request a photocopy of your Will and your inventory sheet and all accompanying documents filed with the probate clerk's office. Your Will may include very personal directions regarding your burial, the guardian of your minor children, how your estate is to be divided between your children, which child gets a larger percentage and so forth. The inventory lists each particular asset in your estate along with its estimated value. It also itemizes all debts that you owe, as well.

Bing Crosby
After Bing Crosby's first wife, Dixie Lee Crosby died, the tabloids produced a copy of her Will. Everyone knew about the Crosby family's assets, the size of their estate, how much money they owed and how it was to be divided. After Bing Crosby died there was nothing reported in the newspapers regarding the value of his estate or who was to receive the assets after his death. The reason for this is that Mr. Crosby learned from his first wife's mistake and placed his estate in a Living Trust so that it avoided probate and the publicity involved in probate.
Justice Warren Burger
Another recent example involves Chief Justice Warren Burger. He was a very private person, not granting interviews or even talking about his private life. Unfortunately, after his death his Will, property inventory and other estate documents became public record. He prepared his own Will and left a legal tangle for his heirs.
Lawsuits
When attorneys are involved in a lawsuit against a person who has died, there is a tremendous incentive to pull-up a complete inventory and asset list from the probate court records. It often makes the difference between filing suit and not filing suit.
Sale of a Business
Can you imagine the damage that can be done to a surviving spouse when one of the assets in the estate is a business? Consider this scenario: A husband has passed away owning a business. The wife, having no interest in the business, wants to sell it. A potential buyer can request the probate court records and determine exactly how much the business is worth according to the seller's own records. This would include how much is owed on the business and whether or not the surviving widow is strapped for cash. If a potential buyer realizes the business has value, and the surviving widow is short on cash, he could make an offer far below the market value of the business.

Imagine an occasion involving a gentleman who was in the process of selling his business. He had negotiated with the buyers and had reached a tentative sale price. Unfortunately, before the deal could be consummated, the owner of the business died of a heart attack. Within a short period of time the Will and inventory list were filed with the probate court. The potential buyers obtained a copy of the Will and inventory list showing the value of the business. After examining the value of the business and determining that the seller was short of cash, they withdrew their tentative offer for the purchase of the business and submitted one that was 40% less than the original offer. Left with no other options, the surviving widow accepted the offer.