Revocable family trusts and wills are both essential tools for estate planning. While they share the goal of distributing assets, they differ in how they operate and the benefits they offer. Understanding these differences can help individuals in Arizona make informed decisions about their estate plans.
How a revocable family trust works
A revocable family trust allows individuals to manage their assets during their lifetime and transfer them to beneficiaries after death. The trust creator, known as the grantor, can modify or revoke the trust at any time. Assets in the trust avoid probate, allowing for a quicker and more private distribution process.
Revocable trusts can help protect assets from lengthy probate proceedings and reduce associated costs. They also provide continuity if the grantor becomes incapacitated, as a named trustee can manage the trust without court intervention.
How a will functions
A will is a legal document that outlines how to distribute an individual’s assets after death. Unlike a trust, a will must undergo probate, which is a court-supervised process. Depending on the complexity of the estate, probate in Arizona can take several months or even years.
A will also allows individuals to name guardians for minor children and specify final wishes, such as burial preferences. However, it does not provide the same level of privacy as a trust, as probate records are public.
Choosing the right option
The choice between a revocable family trust and a will depends on individual circumstances. Many people use both tools to create a comprehensive estate plan. For example, a trust can handle the transfer of significant assets, while a will can address guardianship and smaller personal items.
Planning for peace of mind
Estate planning is an important step in ensuring assets are distributed according to personal wishes. Understanding the differences between trusts and wills helps individuals create plans that align with their goals, providing peace of mind for themselves and their loved ones.