Wills and trusts are essential components of any estate plan, but they serve distinct purposes. Understanding how they differ is a key step toward creating a solid estate planning strategy.
The Legal Definition and Purpose of a Will
A will is a legally binding document that outlines how you want your assets and property to be distributed after your death. It can also include your preferences for funeral and burial arrangements. Additionally, if you have minor children, a will allows you to name a guardian to care for them in your absence.
Exploring Trusts: Their Legal Definition and Function
A trust is a legal tool designed to manage and distribute your assets during your lifetime and after your death. The person who creates the trust, known as the grantor or trustor, outlines its purpose and appoints a trustee to oversee the assets in line with the trust’s terms.
Unlike wills, which come in a single standard form, trusts are available in many different types. One of the most widely used in estate planning is the revocable living trust, which offers flexibility and control during the grantor’s lifetime.
Breaking Down the Differences: Will vs. Trust
Wills and trusts serve distinct legal purposes and have notable differences. The summary below outlines the primary distinctions.
Probate
In the state of Arizona, property and assets governed by a will are typically subject to probate proceedings. Conversely, assets held within a living trust—and many other types of trusts—are generally exempt from probate.
Privacy
In the state of Arizona, property and assets governed by a will are typically subject to probate proceedings. Conversely, assets held within a living trust—and many other types of trusts—are generally exempt from probate.
Assets & Property
In the state of Arizona, property and assets governed by a will are typically subject to probate proceedings. Conversely, assets held within a living trust—and many other types of trusts—are generally exempt from probate.
Revocation
A person who makes a will is free to revoke or change the will at any time before death. Revocable living trusts also may be revoked or changed by the grantor. Some trusts are irrevocable by their nature and terms, and those trusts cannot be changed or revoked.
When Effective
A will takes effect upon the death of the person who created it, known as the testator. In contrast, a trust becomes active once the grantor transfers assets into it.
While a will is legally valid as soon as it’s properly signed in accordance with Arizona law, a trust isn’t fully functional until it is both signed and funded. Executing the trust document is just one step—the trust also requires asset transfer to be considered fully established.
established.
How Do You Choose Between a Will and a Trust?
In the state of Arizona, property and assets governed by a will are typically subject to probate proceedings. Conversely, assets held within a living trust—and many other types of trusts—are generally exempt from probate.
In many situations, a well-rounded estate plan includes both a living trust and a will. Even with a trust in place, a will serves as an important backup to make sure any assets not formally transferred into the trust are still addressed. This kind of will, known as a pour-over will, directs any remaining assets into the trust after death. Without such a will, any property outside the trust would be distributed based on Arizona’s intestate succession laws, which may not reflect the person’s actual wishes.
A Standalone Will or Trust Does Not Constitute a Complete Estate Plan
Deciding between a will and a trust is just the beginning of building a complete estate plan. To fully protect yourself and your loved ones—both during your life and after—additional key documents are essential.
While online DIY tools may seem convenient or cost-effective, they often fail to capture the complexity and nuance of your unique circumstances. Relying on generic templates can lead to serious oversights, leaving your intentions unclear or unenforceable. In some cases, this could result in legal disputes or probate court involvement that could have been avoided with proper legal guidance.