Trust vs. Beneficiary Deed: How to Protect Your Home from Probate

When it comes to estate planning, your home isn't just a place to live—it’s one of your most valuable assets and a key part of the legacy you leave behind. In Arizona, homeowners have a unique choice: place your home in a revocable trust, or use a beneficiary deed (also known as a Transfer on Death Deed) to pass it directly to heirs without probate.

To help break down the pros and cons, I’ve invited Aaron Fransua, Esq., an Arizona-based estate planning attorney, to share his expert perspective. His guide below explores the practical, legal, and often-overlooked differences between these two popular tools—and why the “simple” route isn’t always the smartest one.

Should You Put Your Arizona Home in a Trust or Just Use a Beneficiary Deed?

By Aaron Fransua, Esq., Guest Contributor

For many Arizona homeowners, the home is more than just a place to live. It is often your largest asset and a key part of your legacy. So, it is no surprise that one of the most common questions we hear is:

“Should I put my home in a trust or just use a beneficiary deed to avoid probate?”

The short answer: It depends on your long-term goals and whether simplicity today could create costly surprises later.

Let’s break it down.

Why People Put Their Home in a Trust

A revocable living trust is one of the most effective tools for estate planning in Arizona. When your home is titled in the name of your trust, your family can avoid probate, and a trusted person (your “successor trustee”) can take control quickly and privately if something happens to you.

Other reasons Arizona families choose a trust include:

• Smooth transition in case of incapacity

• Ability to control how and when your heirs receive the home

• Protection for minor children or blended family situations

• Integration with your broader estate or business plan

• Continuity of insurance and title protection

Trusts are especially valuable for entrepreneurial families with layered assets and the need for coordination.

When a Beneficiary Deed Works in Arizona

Arizona is one of a handful of states that allows homeowners to record a Beneficiary Deed (also called a Transfer on Death Deed). This document names who should receive your home when you pass—automatically, and without probate.

Benefits of a beneficiary deed:

• Cost-effective (often under $500 to create and record)

• Avoids probate court

• Keeps you in full control during your lifetime

• Can be revoked or updated at any time

If you own just one home, have no mortgage issues, and are leaving it to a single person, this can be a smart and simple tool.

3 Hidden Risks of Using a Beneficiary Deed in Arizona

Even though a beneficiary deed skips probate, there are important risks most people don’t know about—until it’s too late.

1. Lapse in Homeowner Insurance Coverage
When you pass, your homeowner’s insurance does not automatically transfer to the people named in the deed. If there is a fire, flood, or break-in during that gap, the beneficiaries may be left paying out of pocket.
➡ In a trust, the home is typically covered continuously because the trust is listed as an additional insured.

2. Loss of Title Insurance Protection
Title insurance does not always transfer with a beneficiary deed. This means any defects in title discovered after your death—like a recording error or unknown lien—may not be covered.
➡ Most title policies include extended coverage to a revocable trust.

3. Heirs Must Agree to Sell
If you name multiple beneficiaries, they must all agree to sell, refinance, or manage the property. Disagreements can stall or even derail a smooth transfer, and often require court intervention to resolve.
➡ With a trust, a designated trustee can manage or sell the property without needing unanimous consent.

Quick Comparison: Trust vs. Beneficiary Deed in Arizona

Bottom Line

A beneficiary deed can be a useful probate-avoidance tool, but it has limitations most people only learn about during a crisis. If you want full control, continuity of protection, and flexibility to plan for minor children or family dynamics, a revocable trust is almost always the better fit.

Whether you are in growth mode, mid-career, or thinking about legacy planning, the best estate plans are built before there is a problem—not during one.

Have questions about your Arizona home, trust, or estate plan? Let’s talk. The conversation is free, and the peace of mind is priceless.

-Aaron Fransua, Esq.

My Final Thoughts

Choosing how to pass on your home isn’t just a legal decision—it’s a personal one. I’m grateful to Aaron, for breaking down the options so clearly. While this blog focuses on Arizona, the deeper message applies everywhere: simple choices can have complex consequences.

Whether you’re just starting to think about legacy planning or updating an existing strategy, now is the time to get it right—before life happens.