Estate planning is one of the most important steps you can take to protect your loved ones and your assets. Yet many Arizona residents struggle with one major question: “Should I create a will or a trust, or both?” The truth is that both legal tools serve valuable purposes, but they work very differently. Understanding those differences will help you make an informed decision about what best fits your situation.
In this discussion, we break down wills and trusts in easy-to-understand terms, highlight the pros and cons of each, and explain when each option makes the most sense in Arizona.
What Is a Will?
A will is a legal document that explains how your assets should be distributed after your death. It also allows you to appoint guardians for minor children and name an executor who will carry out your wishes. A will only become effective after your death, and it must go through probate, a court-supervised process that verifies its validity.
What Is a Trust?
A trust is a legal arrangement that holds assets for your beneficiaries. A revocable living trust is the most common type in Arizona. With this type of trust, you can control and modify it during your lifetime. When you die, the trust distributes assets without going through probate. This saves time, money, and is less stressful for your loved ones.
Irrevocable trusts also exist, but they are generally used for advanced estate planning and asset protection.
Key Differences between Wills and Trusts
- Probate – While a will has to go through the probate process, probate is not necessary for a trust
- Effective when? – A will is effective after death, while a trust is effective immediately it is funded
- Privacy – While a will is a public record, a trust is private
- Control – You lose control over your will during incapacity. However, you may still have some form of control over a trust even when incapacitated.
- Cost – While a will has a lower upfront cost, a trust has a higher upfront cost
- Flexibility – A will is moderately flexible, while a trust is highly flexible
The most notable difference is probate. In Arizona, probate can be time-consuming and costly. While some estates may qualify for simplified probate, many families still face significant delays. A trust can eliminate this step entirely.
Pros and Cons of a Will
Advantages:
- Cost-effective and easy to create.
- Allows you to name guardians for minor children.
- Suitable for individuals with simple assets or limited property.
Disadvantages:
- Must go through probate in Arizona.
- Offers no help if you become incapacitated.
- Asset distribution can be delayed due to court involvement.
Pros and Cons of a Trust
Advantages:
- Helps avoid probate, especially valuable in Arizona.
- Allows someone to manage your assets if you become incapacitated.
- Maintains privacy, as it is not part of public record.
- Provides detailed control over how and when assets are distributed.
Disadvantages:
- More expensive to set up initially.
- Must be properly funded (assets must be retitled into the trust).
- It may be unnecessary for very small or simple estates.
When a Will Is the Better Option
A will may be sufficient if you have a relatively small estate, do not own real estate or multiple properties, and want to appoint guardians for minor children. It is also a better option if you are seeking a straightforward and affordable estate plan.
Even if you choose a trust, a will is still necessary to cover any assets not included in the trust, especially if unexpected assets are acquired later.
When a Trust May Be the Right Choice
A trust might be the better option if you want to avoid probate in Arizona, own real estate or property in multiple states, and have a blended family or complex beneficiary situation. It may also be sufficient if you want to protect assets for children or special needs individuals, are concerned about incapacity or long-term care needs, and value privacy and prefer not to make your estate public record.
A trust is especially useful for individuals who want greater control over how and when beneficiaries receive assets, for example, distributing funds gradually instead of all at once.
Can You Have Both a Will and a Trust?
Yes. In fact, many comprehensive estate plans in Arizona use both. A pour-over will works alongside a trust by transferring any remaining assets into the trust upon death. This ensures that no assets are accidentally left out of your estate plan. Using both tools together can provide maximum protection and peace of mind.
Arizona-Specific Estate Planning Considerations
- Probate Laws – Arizona follows specific probate rules, and while some estates may qualify for simplified probate, many do not. Creating a trust can often help your loved ones avoid this process entirely.
- Community Property State – Arizona is a community property state, meaning most assets acquired during a marriage are jointly owned. Estate planning must take these rules into account, especially when drafting wills and trusts for married couples.
- Legal Requirements – Arizona law requires wills and trusts to meet certain standards to be legally valid. Improper wording or incorrect witnessing could render a will invalid or cost beneficiaries time and money in court.
Why You Need an Arizona Estate Planning Attorney
While DIY estate planning websites and templates may seem tempting, they can lead to costly mistakes. An experienced Arizona estate planning attorney can ensure your documents comply with Arizona law, help avoid probate or minimize its impact, and customize trusts for blended families, real estate, special needs planning, or tax strategy.
A lawyer will also help keep your documents updated after major life events, including marriage, divorce, death, or property purchase.
Conclusion: Which One Should You Choose?
Both wills and trusts play important roles in estate planning. A will may be perfectly adequate for some Arizona residents, while others may benefit greatly from a trust, especially when privacy, probate avoidance, or incapacity planning is a concern. The best approach is to discuss your unique situation with an Arizona estate planning attorney to determine the safest and most efficient way to protect your legacy.
If you are in Tucson, AZ, our knowledgeable and experienced Tucson estate planning attorney at St. Clair Law, P.C., is here for you. We will help you choose the right tools, whether that’s a will, a trust, or a combination of both. Contact us today to schedule a consultation and take the first step toward protecting your assets and your loved ones.
