“We’re Not Rich — Do We Still Need a Trust?”
Trusts, Estate planning
Why Estate Planning Still Matters in Arizona, Even With the ‘Big Beautiful Bill’
A lot of Arizona families are hearing about the so-called “Big Beautiful Bill” and thinking, “Well, that’s great news — the estate tax exemption is going up. We’re not millionaires, so I guess we don’t need to worry about estate planning.”
That reaction is understandable. If the federal exemption is increasing, and Arizona doesn’t have its own estate tax, it’s tempting to believe estate planning is only something the very wealthy need to worry about.
But that’s never been the full picture.
Estate Planning Was Never Just About Taxes
Federal estate tax applies only to a tiny fraction of estates — and even fewer if the proposed exemption increase goes through. That doesn’t mean most families can skip estate planning. It means their planning isn’t about taxes — it’s about everything else.
Incapacity. Probate. Guardianship. Family conflict. Delays accessing accounts. Outdated beneficiary designations that don’t match current wishes. Those are the issues most Arizona families will actually face — and they can’t be fixed by doing nothing.
Probate Is Still the Default If You Don’t Plan
If you die in Arizona with more than a certain amount of property titled in your name, your family will go through probate. That’s true even if you have a will.
Arizona recently raised its small estate thresholds to $200,000 for real estate and $300,000 for personal property (these limits will take effect later this year), which will help in some cases. But even with those higher limits, most homeowners and many retirees will still exceed those values — especially once life insurance or retirement accounts are considered.
And even when your family can technically use a small estate affidavit, that’s not always smooth sailing. Banks and title companies sometimes reject them. Title insurance may be unavailable without a formal probate order. If beneficiary designations are outdated or inconsistent, your loved ones could end up in court anyway.
What a Trust Actually Solves
A revocable living trust avoids probate entirely by keeping your assets out of your name at death. That means no court supervision, no forced delays, and no public records.
It also allows you to:
Name someone you trust to manage your affairs if you become incapacitated
Protect minor children by avoiding court-appointed guardianships
Prevent unintended distributions from outdated or conflicting paperwork
Provide clear instructions to avoid family disputes
It’s not about being rich. It’s about being prepared — and making things easier for the people you love.
The Hidden Costs of Doing Nothing
When families put off estate planning, they often leave behind confusion and conflict. Even if they avoid probate, outdated beneficiary forms or conflicting documents can cause assets to pass in ways they never intended. Joint accounts can accidentally disinherit children. Old transfer-on-death deeds can tie up real estate for months.
The cost of cleaning up those issues — legally, emotionally, and financially — almost always exceeds the cost of a proper plan.
Bottom Line: The Exemption May Be Going Up, But the Risk Is Still There
If you’ve been putting off estate planning because you heard estate tax isn’t a concern anymore, you’re not alone. But the tax isn’t the reason most people need a plan.
Most Arizona families — especially those with a home, children, or any amount of savings — still benefit from a well-drafted trust, up-to-date powers of attorney, and a clear, coordinated plan.
That way, you stay in control of what happens. Not the court. Not an outdated form. And not a state statute written for people who never planned ahead.
Ready to Talk?
If you’re not sure whether you need a trust, or just want to ask some questions, we offer a no-pressure consultation to walk through your options. No sales pitch — just straight answers.
You’ve worked hard for what you’ve built. Let’s make sure it’s protected.