Which is Better: Will or Trust?

As the population ages, the question is whether you need a will or a trust.   If you think you are going to avoid taxes by having either a will or a trust, neither will help you on that.  The best reason to create a trust is to avoid probate.  Probate in Arizona usually takes at least one year, even if it is not contested.  Plus, it is expensive.   

If you have only the basic house and a couple of bank accounts, then you could use a will and avoid probate by completing a beneficiary deed on your house and a payable on death or transferable on death beneficiary with your bank.  However, you most likely need a trust if you have complicated assets.  So you ask what is “complicated.”  Complicated can be if you have 3-4 bank accounts, retirement accounts, more than one house/rentals, or whether you have real estate in another state.

Further, you might want to consider a trust if you have an heir/family member that is not so good with his/her money.  In that case, with a trust, you can make provisions for someone else to be in charge of their money and/or give the heir trust money at particular intervals.   

On the other hand, if you believe your estate is very small, your heirs can use an affidavit for collection of personal property to distribute those assets when you pass.  If your house is worth less than $100,000, then you can file an affidavit for transfer of real property.   If your debts are more than your assets, then you may want to consider a will instead of a trust so that the creditor doesn’t try to make your heirs responsible for your debt.  Whether you need to have a will or trust just depends on your circumstances.

Karla Wyrostek, AZCLDP #80663, Karla's Paralegal Services, Inc., AZCLDP #80664