Contracts to Leave an Inheritance in Arizona: More Than Just a Will

By Libby Banks, The Law Office of Libby Banks, PLLC

When most people think about passing down their property, they picture a will or a trust. But Arizona law also allows for another tool that doesn’t get talked about as much: a contract to make a will or leave an inheritance. These agreements can shape how your estate is handled—and even specify gifts that must go into a trust.

What Is a Contract to Make a Will?

Arizona law recognizes contracts where a person agrees to make a will or trust, agrees not to revoke it, or leaves a specific gift to someone upon their passing. This means you can put in writing, for example, a promise to leave your home to your niece, or to ensure that a sum of money will go to a beneficiary.

Here’s the key point: the contract we are talking about is not itself a will. A will is a legal document that actually transfers property at death, and it must meet strict requirements to be valid. The contract is to execute that will or trust during life, and the contract doesn’t move property by itself, though it creates a binding obligation that can be enforced against your estate.

Real-World Examples

• Leaving the Family Homestead or Cabin to a Family Member
  John and Mary have a family cabin, but the expenses are now too much for them. One of their children agrees to pay all expenses and costs so Mary and John can continue to enjoy the property, but wants assurance he’ll be reimbursed when they pass away. John and Mary can make a contract with him, agreeing that their wills or trust will have a specific gift reimbursing him for his contributions.
• Business Succession
  Two business partners, Alex and Sam, sign a contract stating that when one dies, that person’s ownership interest will be distributed to the other, and that this provision will be included in the partners’ wills or trusts. The contract makes this binding, so surviving spouses or heirs can’t derail the plan.

What Happens if the Contract Is Ignored?

If someone breaks their promise—for example, leaving assets to someone else despite a contract—the disappointed beneficiary can go to court and enforce the agreement. The contract works, but it can also mean legal battles and added expense.

Bottom Line

In Arizona, a contract to make a will or leave a gift—including one that directs property into a trust—can be a powerful estate planning tool. These agreements are especially valuable in complex family situations, business partnerships, and protective planning for vulnerable loved ones.

The best approach? Consult with a knowledgeable attorney to work through the best way to provide certainty that the promise is binding and that there is smooth administration of your valid will or trust.

We would love to help with this! Call for our free initial consultation: 602-375-6752.