It’s one of the most common questions in estate planning: do I need a will, or a living trust? Both let you decide who gets what. The difference is how your property gets there. A will works through the probate court after you die. A funded living trust lets a successor trustee you choose step in privately, without court supervision, either after your death or upon your incapacity. But a trust only works if you actually put your assets into it. Find out how wills and living trusts compare under Arizona law, and how to decide which fits your family.
What is a will?
A will is your written set of instructions for who receives your property, who serves as your Personal Representative, and who should raise your minor children. It takes effect only at your death, and in most cases it has to go through probate, the court-supervised process for settling an estate.
What is a living trust?
A revocable living trust is an arrangement you create during your lifetime. You usually serve as your own trustee, managing your assets for your own benefit, and you name a successor trustee to take over if you become incapacitated or when you die. Unless the trust says it’s irrevocable, you can change or revoke it at any time (A.R.S. § 14-10602).
The important part is funding. A trust controls only the property that actually belongs to it. It owns nothing without a person or entity giving the trust its property (aka funding it). Under A.R.S. § 14-10401, a trust is created by transferring property to a trustee, or by an owner declaring that they hold identifiable property as trustee. In practice, that means signing and recording a new deed for your home and retitling your bank and brokerage accounts in the trust’s name.
How do wills and living trusts compare?
| Will | Living Trust | |
|---|---|---|
| Probate | A will generally has to go through probate. | A funded trust avoids probate for the assets it holds. |
| Privacy | Probate filings are public court records. | A trust’s terms generally stay private. |
| Time | Arizona probate includes a creditor claim period of at least four months after notice is published (A.R.S. § 14-3801), and many estates take longer. | A trust administration can usually move faster, though the trustee still has to pay debts and keep beneficiaries informed. |
| Incapacity | A will does nothing while you’re alive. | A successor trustee can manage trust assets if you become incapacitated, without a court-supervised conservatorship. |
| Cost | A will usually costs less up front. | A trust costs more to set up and requires funding. |
| Out-of-state property | If you own real estate in another state, your family may face a second probate there. | A trust that holds the out-of-state property can spare your family a second probate in another state. |
| Guardians for minor children | Your will is where you appoint a guardian for your minor children (A.R.S. § 14-5202). | A trust can’t appoint a guardian, which is one reason people with trusts still need a will. |
Do you always need probate without a trust?
Not always. Arizona offers simplified procedures for smaller estates. Under A.R.S. § 14-3971, the people entitled to a decedent’s property can collect personal property by affidavit 30 days after death if its total value, less liens, doesn’t exceed $200,000 and the funeral and last-illness expenses have been paid. They can claim Arizona real estate six months after death if its full cash value on the county assessor’s rolls (less liens) doesn’t exceed $300,000 and the funeral expenses, last-illness expenses, and unsecured debts have been paid. That affidavit is certified by the probate court and recorded, a short filing instead of a full probate case. Assets with beneficiary designations, payable-on-death accounts, joint ownership with survivorship, and beneficiary deeds (A.R.S. § 33-405) also pass outside probate. For families whose estates fit these numbers, a will combined with these tools can let them avoid much of the probate process without the fuss of a trust.
Common mistakes with living trusts
Never funding the trust. The most common, and most expensive, mistake. An unfunded trust is an empty box, and everything outside it may have to go through probate anyway.
Funding it halfway. Buying a new home or opening a new account in your own name after the trust is signed puts that asset right back outside the plan.
Putting a beneficiary deed on trust property. A beneficiary deed signed for a home your trust already owns is invalid, because only an individual owner can sign one. If the home is in your trust, the trust’s terms decide who receives it.
Skipping the pour-over will. A pour-over will (A.R.S. § 14-2511) catches anything left outside the trust and sends it in. It still requires probate, but without one, those assets pass under Arizona’s default inheritance rules instead of your trust.
Mismatched beneficiary forms. Naming individuals directly on accounts can bypass protections in your trust, like holding money for young beneficiaries.
An unprepared successor trustee. If your successor trustee doesn’t know the trust exists, or where the documents are, or worse, doesn’t want the responsibility, the plan stalls when it’s needed most.
How to fund a living trust
Deed your real estate. Sign and record a deed transferring your Arizona home and other real estate to yourself as trustee.
Retitle your accounts. Change the ownership of bank, brokerage, and investment accounts to the trust’s name.
Coordinate beneficiary designations. Decide whether each life insurance policy and retirement account should name individuals or your trust. The right answer depends on your goals, the type of account, and taxes.
Assign personal property and business interests. A written assignment can move household items, collectibles, and business interests into the trust.
Sign a pour-over will. Your safety net for anything you miss.
Keep funding. Title every new home, account, or investment in the trust’s name from the start.
Review it regularly. Look at your trust and its funding every few years, and after every major life event. And then do it again.
Frequently Asked Questions
Does a living trust avoid probate in Arizona?
Yes, for the assets the trust owns. And only those assets. Anything still titled in your own name at your death, without a beneficiary designation or other non-probate transfer, may need to go through probate, even if you have a trust.
Is a will enough for most Arizona families?
Sometimes. If your estate is under the small-estate limits, your real estate passes by beneficiary deed, and your accounts have up-to-date beneficiary designations, a will may be all you need. A trust becomes more valuable with larger estates, real estate in multiple states, blended families, beneficiaries who need ongoing management, or concerns about incapacity. It’s also the strongest choice for people who want to keep as much as possible out of probate.
Do I still need a will if I have a trust?
Yes. People with a trust still need a “pour-over” will. It catches assets you never got into the trust, and it’s where you name a guardian for minor children (A.R.S. § 14-5202).
Does a living trust protect my assets from creditors or nursing home costs?
Generally, no. Under A.R.S. § 14-10505, the property in a revocable trust is subject to your creditors’ claims during your lifetime, because you still control it. A revocable trust is considered an extension of you, not something separate from you. Protecting assets from long-term care costs or creditors requires different planning, sometimes involving irrevocable trusts.
Does a trust save taxes?
Arizona has no state estate tax, and most estates owe no federal estate tax. A basic revocable living trust doesn’t reduce income or estate taxes on its own.
What happens if I become incapacitated?
Your successor trustee can step in and manage the trust’s assets without going to court. Assets outside the trust still need someone with authority, usually an agent under a financial power of attorney, or else a court-appointed conservator.
Next Steps
The right choice between a will and a trust depends on your family, your property, and your goals. Either way, a plan only works if it’s finished: signed correctly, funded, and coordinated with your beneficiary designations.
See what happens when a trust is signed but never funded in The Horrors of Es Tate’s Planning: The Trust Fund That Wasn’t (coming Friday!)
We’ll help you decide whether a will, a living trust, or a combination fits your family, and we’ll make sure your trust is actually funded. Schedule your Free 30-Minute Peace of Mind Session with the Danza Law Office. 100% virtual and deeply personal, from anywhere in Arizona.
This post is for informational purposes only and does not constitute legal advice. Reading it does not create an attorney-client relationship. Laws change, and every situation is different, so please consult an attorney about your specific circumstances.
