What's the Best Choice for Your Arizona Estate Plan?

Trusts vs Wills in Arizona

Compare wills and revocable living trusts. Learn when probate applies, what small estate affidavits and beneficiary deeds can do, and how mortgages and beneficiary designations work under Arizona law.

Key Takeaways

A will passes what you own at death, but the court must approve it and filings are public. A will alone does not avoid probate.
A revocable living trust keeps your plan private and can avoid probate when you move assets into the trust or set the right beneficiary designations.
Arizona offers a beneficiary deed that can transfer a home at death if you record it in advance. See ARS § 33-405.

A trust only works if you fund it. Assets not retitled or aligned with the trust will pass outside of it.

Deciding Between a Trust and a Will

When you start an estate plan in Arizona, one of the first decisions you face is whether to rely on a will, a trust or a combination of both. Wills and revocable living trusts are the primary tools for passing property to your loved ones. Understanding how each works will help you pick the right solution for your situation.

Last Will and Testament

A will is a legal document that outlines your wishes for the distribution of your property after your death. It's the classic estate planning document most people are familiar with.

Key Functions of a Will:

Distributes Property: You can name who gets what, from your house to your personal heirlooms.
Names an Executor: You appoint a trusted person (an executor or personal representative) to manage your estate and ensure your instructions are followed.
Appoints Guardians: This is crucial for parents with minor children.

A will is the only place you can officially name a guardian to care for your kids if something happens to you.

The Probate Process

In Arizona, a will must go through a court-supervised process called probate. The court validates the will, pays off any of your outstanding debts using estate funds, and then oversees the transfer of your assets to your beneficiaries. While Arizona has relatively efficient probate procedures, the process is public record and can take several months or longer to complete.

When a Will Alone May Work

A will can be enough for a simple estate. It may be the right choice if:

Your total assets fall within Arizona’s small-estate thresholds: $200,000 for personal property and $300,000 for real estate (effective mid-2025, based on filing date).
You own no real estate: Without property, asset transfers are usually simpler.
You already have named beneficiaries: Bank accounts, life insurance, or retirement funds with beneficiaries listed can pass directly without probate.

Living Trust

A revocable living trust is a legal arrangement where you transfer your assets into a trust during your lifetime. You (the grantor) appoint a trustee (usually yourself, initially) to manage these assets for the benefit of your chosen beneficiaries.

Key Functions of a Trust:

Avoids Probate: This is the biggest advantage of a trust. Because the assets are owned by the trust, not you personally, they don't need to go through the probate process. This saves time, reduces costs, and keeps your affairs private.
Manages Assets: A trust allows for the management of your assets if you become incapacitated. Your designated successor trustee can step in to manage your finances without needing court intervention.
Controls Distribution: You can set specific conditions for how and when your beneficiaries receive their inheritance (e.g., at a certain age or for a specific purpose like education).

When a Trust Becomes the Better Choice

If your estate is likely to go through probate, a trust is almost always the better option. In Arizona, probate generally applies when assets exceed $200,000 in personal property or $300,000 in real estate (effective mid-2025, based on filing date). If you cross either threshold, your estate will not qualify for the small-estate affidavit process, and probate becomes unavoidable without planning.

A trust avoids that process entirely, ensuring your property transfers quickly and privately. It also protects you if you become incapacitated by letting your chosen trustee manage your affairs without court involvement. On top of that, a trust lets you set clear rules for how and when your heirs receive their inheritance, giving you more control over the outcome.

How Does a Will and Trust Work Together

If you’ve ever wondered whether you need both a will and a trust, you’re not alone. Many people think it’s an either-or situation, but in reality these two tools can be powerful partners in your estate plan. Used together, they cover more ground, protect more assets, and give your family a clearer path forward when the time comes.

What a Will Actually Does

Think of your will as your final set of instructions. It tells the court who should get what, names guardians for minor kids, and puts someone in charge of carrying out your wishes. The catch? A will has to go through probate. That’s a public, sometimes slow process, and it only covers assets that aren’t already in a trust or have a named beneficiary.

With a will, you can:

Decide who gets what. Anything outside your trust is handled here.
Choose guardians. Make sure minor children are cared for by the right people.
Pick an executor. Appoint the person who will oversee the process.

Where the Trust Comes In

A trust is more like a private vault. You put assets inside during your lifetime, and your trustee manages them for you and your beneficiaries. The big advantage is that assets in your trust skip probate entirely, making the process faster, private, and often less stressful for everyone involved.

A trust lets you:

Bypass probate. No court delays or public filings for trust assets.
Manage assets long-term. Perfect if you want to provide for kids or loved ones over time.
Keep things private. Trusts are not part of the public record.

The Real Power: Using Them Together

Here’s the sweet spot. A trust takes care of the assets you’ve placed in it, while a “pour-over” will acts as a safety net for everything else. If you forget to move an asset into your trust during your lifetime, the pour-over will directs it there after your passing. It’s like having a backup plan built into your backup plan.

Bottom line... a will and a trust are not rivals. They are teammates. Together, they give you more control, more privacy, and a much smoother process for the people you care about most.

See How Wills and Trusts Stack Up

Click on any topic below to learn more about how Wills and Living Trusts work differently to protect your family.

Topic	Simple Will	Living Trust
	Only after you pass away	Right away, while you're alive
Why this matters: A Will only kicks in after death, leaving a gap if you become unable to manage your affairs. A Living Trust works immediately, providing seamless protection if you become ill or incapacitated. Your chosen trustee can step in to pay bills, manage investments, and handle your affairs without court involvement.
	No - goes through probate	Yes - avoids probate entirely
What is probate? It's the court process where a judge validates your Will and oversees asset distribution. This can take 9-18 months in Arizona and cost 3-8% of your estate value. With a Trust, your family gets immediate access to assets without waiting for court approval or paying probate fees.
	Becomes public record	Stays completely private
Privacy concerns: When a Will goes through probate, it becomes public record. Anyone can see what you owned and who gets what. A Trust keeps everything private - your assets, beneficiaries, and family matters stay confidential, protecting your loved ones from unwanted attention or solicitation.
	Need separate Power of Attorney	Built-in backup plan
Peace of mind: If illness or injury prevents you from handling finances, a Will won't help (it only works after death). You'd need a separate Power of Attorney document. A Trust has this protection built in - your backup trustee automatically takes over without needing court permission or additional paperwork.
	Less now, more later	More now, save later
The real numbers: A Will costs less upfront (typically $500-1,500) but your family pays probate costs later (often $10,000-30,000+). A Trust costs more initially ($2,000-4,000) but saves your family from probate expenses, delays, and stress. Think of it as paying a little more now to save your family a lot more later.

Beneficiary Deed vs Living Trust

A beneficiary deed can be a quick, low-cost way to transfer your home to someone after you pass away, but it offers limited flexibility and no protection if you become incapacitated. A living trust provides more control, privacy, and built-in backup plans, making it a better fit for families who want to avoid probate, manage property during illness, and set clear rules for how heirs receive their inheritance. The right choice depends on your goals, the complexity of your estate, and how much planning you want in place for life’s uncertainties.

Key Differences at a Glance

While both a beneficiary deed and a living trust can transfer your home without a traditional sale, the way they work and the protection they offer are very different. In the sections below, you can explore how each option handles issues like probate, incapacity, beneficiary changes, and long-term control over the property. Click on each topic to see a detailed breakdown.

What a Beneficiary Deed Does

A beneficiary deed is simple and inexpensive. It lets you transfer your home directly to someone without going through probate, but only if you follow Arizona’s legal requirements.

Transfers the home at death, subject to any existing mortgage or lien. ARS § 33-405(A).
Requires proper execution and recording. See ARS § 33-401
Allows you to name a trust as the grantee so the home flows into your estate plan. ARS § 33-405(E)

Where Beneficiary Deeds Fall Short

While convenient, beneficiary deeds can create problems if your plans change or unexpected events occur.

No protection if you become incapacitated; no manager is in place.
Limited backup options. If a named person dies first and you have no contingencies, the plan fails.
Multiple beneficiaries can create co-owners at your death, which can cause conflict. Arizona defaults to tenants in common unless you specify joint tenancy. See ARS § 33-431.

When a Living Trust Wins

A living trust covers situations where a beneficiary deed falls short. It avoids probate, but it also gives you more control and flexibility. If you become ill or incapacitated, your chosen trustee can manage the home without court involvement. You can name backups, set conditions for inheritance, and protect minors or vulnerable beneficiaries. These features make a living trust better for complex family situations or when you want a clear plan that works both during life and after death.

See ARS § 14-6101 and ARS § 14-10815

Mortgages and Title Changes

With a beneficiary deed, the mortgage stays in place until your death, and the lender will still expect payment from your heirs. A living trust handles the transition more smoothly. Moving your home into your own revocable trust for estate planning usually does not affect your mortgage, and federal law prevents lenders from enforcing a due-on-sale clause if you remain a beneficiary after the transfer. This allows the trustee to manage or sell the property without delays or loan issues.

See 12 U.S.C. § 1701j-3(d)(8)

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Learn About Estate Planning at One of Our Upcoming Local Workshops

We host educational events throughout Arizona specifically for retirees. Our workshops cover essential topics including how to avoid probate, protect your assets, understand the differences between trusts and wills, and ensure your healthcare and financial wishes are properly documented for your loved ones.