For most Arizona families, relying on a simple will leaves critical gaps in their estate plan. While a will might seem sufficient, the reality is that it often falls short of providing the privacy, efficiency, control, and protection families need. This guide explains the benefits of wills vs trusts and why trusts have become the cornerstone of effective estate planning for most Arizona families.
What Are Wills and Trusts?
Let’s explore what both a will and a trust accomplish.
What Is a Will?
A will is a legal document that outlines how your assets should be distributed after your death. It also allows you to name guardians for minor children and appoint an executor to carry out your instructions. But a will only takes effect after death, and only after it’s been validated by a probate court.
What Is a Trust?
A trust is a legal arrangement where you (the grantor) transfer ownership of your assets to a trustee, who manages them for the benefit of your chosen beneficiaries. A trust can be structured to offer substantial tax advantages, asset protection, and is a critical part of a comprehensive estate plan. A trust can help your heirs avoid the probate process.
A revocable living trust allows you to retain full control and make financial decisions during your lifetime. If you become incapacitated or pass away, your successor trustee steps in to manage or distribute the assets without court involvement. A revocable living trust provides flexibility by allowing the grantor to make changes during their lifetime.
An irrevocable trust is a legal arrangement where the person creating the trust (the grantor) permanently transfers assets into the trust, giving up all ownership and control. Once created, the terms cannot be modified without beneficiary consent or court approval, though these assets exit the grantor’s estate and may reduce estate taxes. The trustee manages the trust for the named beneficiaries according to its instructions.
In Arizona, however, estate planners can leverage a statutory mechanism known as trust decanting to amend such irrevocable trusts effectively. Under Arizona Revised Statutes § 14‑10819, a trustee holding discretionary principal distribution powers may “decant” the trust by transferring assets from the existing irrevocable trust into a new trust, thereby altering terms without beneficiary consent or court intervention, provided the original document doesn’t expressly prohibit decanting.
Why a Trust Is Often the Better Choice
1. Trusts Avoid Probate. Wills Do Not.
Probate is a court-supervised process that validates a will, pays off debts, and distributes assets. In Arizona, even a relatively simple probate can take six months or more to move through probate court. During that time, your family may not have access to the assets they need.
Assets transferred into a trust bypass probate entirely. Your successor trustee can begin managing and distributing assets immediately. Asset distribution without the delays associated with probate is a significant reason people choose a trust. No court delays. No public filings. Less attorney fees.
For families who want to avoid unnecessary legal costs and delays, a trust is the clear winner.
2. Trusts Keep Your Affairs Private
When a will is filed with the court, it becomes public record. Anyone can see what you owned, who you owed, and who inherits what. That includes creditors, estranged relatives, and anyone else who might want to challenge your wishes.
A trust remains private. The only people who see the trust document are the trustee and the beneficiaries. For families with business interests, real estate, or simply a desire to keep financial matters confidential, this privacy is a major advantage.
3. Trusts Provide Protection During Incapacity
A will does nothing until you die. If you become incapacitated—due to illness, injury, or age—your family may need to go to court to be appointed as your conservator just to manage financial decisions for you.
A trust avoids this. If you can no longer manage your affairs, your successor trustee can step in immediately to handle your financial accounts, pay bills, and manage property.
4. Trusts Offer More Control Over How and When Assets Are Distributed
A will typically distributes probate assets in a lump sum. That may work for some families, but it can create problems, especially for young adults, beneficiaries with special needs, or those who struggle with money management.
A trust allows you to set conditions. You can:
- Delay distributions until a beneficiary reaches a certain age
- Provide ongoing support for a child with disabilities
- Protect assets from creditors or divorce
- Appoint a trustee to manage funds for a beneficiary who isn’t ready to handle them
This level of control is simply not possible with a will alone.
5. Trusts Can Help Improve Estate Tax Savings and Preserve Benefits
While Arizona does not have a state estate tax, federal estate taxes may apply to larger estates. Certain types of trusts, such as irrevocable life insurance trusts or charitable remainder trusts, can help reduce or eliminate estate tax liability.
Trusts can also be used to preserve eligibility for government benefits. For example, a properly drafted special needs trust can provide financial support to a disabled child without disqualifying them from Medicaid or SSI.
A will cannot provide tax benefits or preserve benefits for family members.
When a Will Might Be Enough
There are situations where a will may be sufficient:
- You have a small estate with few assets (less than $100,000 in real property or less than $75,000 of personal property)
- You don’t own real estate
- You’re not concerned about privacy
- You’re comfortable with the probate process
- Your only goal is to appoint a guardian for minor children
Even in these cases, your Will should be part of a broader plan that includes powers of attorney and other essential estate planning documents. But for most families, a will is not enough to protect your wealth and family.
Why Many Families Use Both
A trust doesn’t replace the need for a will. Our trust-based estate plans include a “pour-over will” that names guardians for minor children and ensures any assets not titled in the trust are transferred into it after death.
But even with a pour-over will, the trust is the main event. It provides instructions for the management of your assets during your life, in the event of your incapacity, and after you pass away.
The Role of Your Estate Planning Attorney
An experienced estate planning attorney helps you:
- Choose the right tools for your goals
- Draft documents that comply with Arizona law
- Transfer assets into your trust (a critical step many people miss)
- Coordinate beneficiary designations on retirement accounts and life insurance
- Update your plan as your life changes and oversee the legal process of managing trust assets
- Create a plan for complicated estates where asset management is a priority.
Without proper guidance, even a well-drafted trust can fail. Your attorney helps you build a plan that works when your family needs it most.
Build a Plan That Works
Trust-based estate planning isn’t reserved for the wealthy. It’s for anyone who wants to:
- Avoid probate fees
- Protect their privacy
- Plan for incapacity
- Control how and when assets are distributed
- Provide for loved ones with special needs
- Reduce taxes
For most Arizona families, a revocable living trust offers a more complete, flexible, and secure way to protect what matters most.
Schedule a Consultation with an Arizona Estate Planning Attorney
At Sorrell Estate & Probate, we help Arizona families create estate plans that work. Whether you’re starting from scratch or updating an old plan, we’ll help you choose the right tools to protect your assets and your loved ones.