When a person executes a will as the sole indication of their last wishes, their entire estate will go through the probate process at the end of their life. As many people know, there are certain disadvantages associated with the process of probating a will. It can take a lot of time and is also costly.
To dodge the costs of probate, some people decide to create trusts. That way, at least the portion of their assets held within the trust can bypass the probate process. When a person funds a trust, it will go through the administration process at the end of their life.
What are the advantages of trust administration versus probate?
The trust administration process is not supervised by the courts, which simplifies the process. As long as everything is in place, the transfer of assets over to the beneficiary will be much less expensive. The process also is far more private, as the details of the trust will not become part of the public record.
What about the disadvantages?
It could be argued that the lack of court supervision can be a disadvantage if a dispute arises between the beneficiaries. In a dispute, beneficiaries will have to seek assistance from the courts themselves, but in the probate process the assistance is automatically available.
If you are considering starting a trust in the state of Arizona, it is important that you research the entire process so that you will know if it's the right decision for you. Knowing that you have done all that you can to streamline the process for your heirs can give you peace of mind.