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JO - If someone chooses to have his or her name removed from the records of the church or if someone is excommunicated from the church, are the people he or she is sealed to (for example, his or her parents) notified? Or is this a confidential matter?
JOEL - Name removal:
Under most circumstances name removal for an adult member would be a confidential matter which would not be shared with anyone, except of course the Bishop which might be involved in the process. Family members that he or she is sealed to might eventually find out by other ways but not from the Church.
A minor would have to have his/her parents permission and signature on the letter of resignation.
The only circumstance I can imagine where it could come out to someone through Church channels is if a divorced sealed person were to resign or be excommunixated from the church. This would automatically cancel any sealing he/she had to a former spouse. The former spouse would eventually need to know this in case they wanted to be sealed to someone else later on.
If a person is excommunicated this action may be communicated to other members of the local ward on a need to know basis, if that person continues to attend meetings with plans to repent and be re-baptized. This might include family members living in the same ward. Excommunicated members are not allowed to say prayers, teach, give talks, or hold callings in the ward. Family members to whom one is sealed who are not living in the ward would not be notified by the Church.