Alaska Wills vs. Trusts
Estate planning in Alaska can be straightforward with proper guidance. The Last Frontier provides several distinctive advantages, including robust Domestic Asset Protection Trusts (DAPTs), deeds that transfer real estate ownership upon death, and the ability to verify will and trust validity before death. Given Alaska’s streamlined probate procedures for smaller estates and complete absence of state-level estate and inheritance taxation, knowing whether a will or trust better suits your situation is essential. Making informed estate planning decisions helps protect your family from unnecessary expenses, legal complications, and delays while ensuring your assets are distributed according to your wishes.
Table of Contents
US Map For The Different Will and Trust Requirements by State
Interested in other state’s law regarding wills and trusts? Click the ABOVE state you want to be taken to.Â
Alaska Will Requirements
An Alaska Last Will and Testament should include:
- Age and Capacity: Testator must be “of sound mind” and at least 18 years old
- Format: Must be in writing
- Signature: Must be signed by the testator (or signed in the testator’s name by an individual signing at the testator’s direction while in the testator’s conscious presence)
- Witnesses: Must be signed by at least two witnesses who must observe the testator signing the will or hear the testator acknowledge that the will or signature is authentic
Witness Requirements
For Alaska wills:
- Witnesses must sign within a reasonable time after witnessing the testator’s signature or acknowledgement
- The only qualification necessary to witness an Alaska will is that the individual must be generally competent to act as a witness
- An interested witness (i.e., someone who stands to benefit from the will) does not invalidate an Alaska will or any provision of the will
Incorporation by Reference
An Alaska will may incorporate by reference:
- Another document in existence when the will is executed
- The will must clearly manifest the testator’s intent to incorporate the other document and must describe the document sufficiently to allow identification
Self-Proved Wills
Though Alaska does not require notarization of wills, an Alaska will can be made “self-proved” if the testator and witnesses execute notarized “self-proving affidavits”:
- The affidavits confirm that the testator signed the will voluntarily and that—when signing—the testator had adequate legal capacity and was under no constraint or undue influence
- When available, a self-proving affidavit eliminates the need for witness testimony to prove the will before the probate court
- Self-proving affidavits may be executed simultaneously with the will or later and are typically included as attachments to the original will
- The Alaska State Legislature publishes form language for self-proving affidavits at Ak. Stat. §13.12.504
Pre-Death Will Validity Determination
No-Contest Clauses
No-contest (or “in terrorem”) clauses—which penalize a party for contesting a will or initiating other estate-related proceedings—are notionally valid in Alaska, but the clauses are unenforceable if the contesting person has probable cause for instituting the proceedings.
Need help creating the right estate plan for your Alaska family?
Our estate planning specialists can help you navigate Alaska’s unique laws and create a personalized strategy.
THE ULTIMATE FREE DOWNLOAD
The Estate Planners Tactical Guide
Essential Legal Protection for Achievers
Amendment, Revision, and Revocation of Alaska Wills
Amending an Alaska Will
A testator may amend an Alaska will by:
- Executing a codicil (a separate addendum that amends an existing will)
- Executing another will
In either case, a document amending a will must satisfy all legal requirements for execution of an original will.
Revoking an Alaska Will
A testator can revoke an Alaska will by:
- Executing a new will that revokes the prior will expressly or by inconsistency
- Performance of a “revocatory act” by the testator (or by another person acting at the testator’s direction while in the testator’s presence)
Later Wills and Inconsistency
Effect of Marriage After Will Execution
If an Alaska testator marries after executing a will:
- The surviving spouse inherits the same share of the estate he or she would have inherited had the testator died intestate—adjusted for any distributions to children of the testator born before the marriage and who are not children of the surviving spouse
- An omitted later-wed spouse’s presumed share is inapplicable if:
- The will was made in contemplation of the marriage
- The testator intended the will to apply notwithstanding a subsequent marriage
- The testator made other provisions for the surviving spouse outside the will intended in lieu of the will
After-Born Children
If a child is born to or adopted by an Alaska testator after execution of a will:
- The after-born child may inherit a share of the estate
- If the testator had no other living children when executing the will, the after-born child’s share is equal to what the after-born child would have inherited had the testator died with no will
- If the testator had other children who the testator provided for in the will, the after-born child’s share is calculated based on the devises to the other children
- An omitted after-born child’s share is inapplicable if the omission was intentional or the testator made other provisions for the child in lieu of the will
Automatic Revocation by Divorce
Holographic and Oral Wills
Holographic Wills
A document that does not fully satisfy the requirements for an attested Alaska will may be nonetheless valid as a holographic will if:
- It is signed by the testator
- All material provisions of the document are in the testator’s handwriting
Oral (Nuncupative) Wills
Oral (or “nuncupative”) wills are no longer recognized under Alaska law.
Alaska Trust Requirements
Alaska trusts are primarily governed by statutes codified within Chapter 36 of Title 13 of the Alaska Statutes and common law. Alaska has not adopted the Uniform Trust Code approach used by many states—though some Alaska trust statutes are similar to provisions of the uniform act.
Oral Trusts
Trust Parties
The three essential parties to an Alaska trust are:
- The settlor (sometimes called “grantor” or “trustor”) is the person who originally forms the trust and transfers property in trust
- The beneficiary is the person designated to enjoy the benefit of assets held in a trust
- The trustee is the person responsible for administering the trust, managing its assets, and making distributions to beneficiaries
Trustee Appointment and Requirements
- Trustees are ordinarily appointed within the trust instrument or under its terms, though Alaska law allows for appointment of a trustee by a court if necessary
- Alaska law requires that a trustee of a trust primarily administered in Alaska be an Alaska resident—except that a non-resident may serve as co-trustee if another co-trustee is a resident
- A foreign corporation acting as trustee of an Alaska trust must be authorized to transact business in Alaska
Trustee Responsibilities
- Trustees of Alaska trusts are generally considered fiduciaries
- A trustee must administer a trust with prudence, diligence, and discretion—using the judgment exercised by ordinary persons in carrying out their own affairs
- Trustees who manage assets are ordinarily held to the “prudent investor rule”—under which a trustee must manage trust assets prudently considering the purposes, terms, distribution requirements, and other circumstances of the trust
- A trust’s settlor may alter the trustee’s duties and obligations—except that the rules relating to self-dealing and lending trust funds cannot be modified
Trust Registration
The trustee of a trust principally administered in Alaska must register the trust with an Alaska court with jurisdiction at the trust’s principal place of administration. A trustee registers a trust by filing a statement identifying the trust’s settlor (or testator for testamentary trusts), original trustee, and date.
Trust Protectors and Advisors
Alaska law authorizes—but does not require—appointment within a trust instrument of two other parties to the trust:
- The “trust protector” may be appointed and empowered by the trust instrument to—for example—remove and appoint the trustee, amend the trust instrument for favorable tax treatment, or modify beneficiary interests
- A trust advisor appointed within a trust instrument provides the trustee with advice—which the trustee may or may not be required by the trust instrument to follow—regarding management and investment of trust assets
Trust Revocability
An Alaska trust can be revocable or irrevocable:
- The settlor of a revocable trust retains the power to amend or revoke the trust
- The settlor of an irrevocable trust surrenders the power to amend or revoke the trust
- Alaska law assumes that an Alaska trust is revocable unless the trust is expressly made irrevocable
Trust Modification or Revocation
A settlor may modify or revoke a revocable trust:
- Using the method specified in the trust instrument
- Or, if the trust instrument’s method is not the exclusive method, through another signed writing (other than a will) delivered to the trustee
An agent acting under power of attorney may not revoke or modify a trust on the settlor’s behalf unless expressly authorized by the trust instrument.
Living Trusts for Estate Planning
Pre-Death Trust Validity Determination
Court-Ordered Trust Modification or Termination
Under limited circumstances, Alaska irrevocable trusts may be modified or terminated by a court upon petition of the trustee, settlor, or beneficiary. Court-ordered modification or termination may be permissible to:
- Adjust administrative provisions
- Correct mistakes to conform to the settlor’s intent
- Achieve the settlor’s tax objectives
- If the trust’s value is less than $50,000 and the trust is uneconomical to administer
THE ULTIMATE FREE DOWNLOAD
The Estate Planners Tactical Guide
Essential Legal Protection for Achievers
Special Considerations
Estate Taxes
No State Estate or Inheritance Taxes
Alaska does not impose either estate or inheritance taxes. Large Alaska estates may still be liable for federal estate taxes.
Simplified Probate
Informal Administration
Alaska law provides a process for informal administration of uncontested estates:
- An interested person must file a petition requesting appointment of a personal representative for informal probate
- If the appointment is granted, the personal representative administers the estate using a streamlined process that involves less direct supervision by the probate court
Small Estate Affidavit
Alaska has a process by which a rightful successor to personal property within a small estate may obtain possession of personal property outside of probate by executing a compliant affidavit:
- The affidavit sets forth statutorily required information—such as the successor’s relationship to the decedent, the basis of the right to recover the specific property, and the status of any personal representative appointment
- To qualify as a small estate, the probate estate must not include real estate, the decedent’s vehicles must not exceed $100,000 in value, and remaining personal property must not exceed $50,000
Non-Probate Transfers
Transfer-on-Death (TOD) Deeds and Vehicle Titles
TOD Real Estate Deeds
Alaska is among the states that recognize transfer on death designations on real estate deeds (also called “TOD deeds” or “beneficiary deeds):
- Real property subject to a TOD deed automatically transfers to the named beneficiary upon the owner’s death, avoiding the need for probate
No TOD Vehicle Titles
Alaska does not recognize TOD designations on vehicle titles.
Alaska Spendthrift Trusts and DAPTs
Spendthrift Trust Protection
Alaska’s laws regarding “spendthrift trusts”—which restrict transfer of beneficiaries’ interests in a trust—protect trust assets from a beneficiary’s creditors:
- A beneficiary’s creditors cannot attach assets held in a spendthrift trust until actually distributed to the beneficiary
- Real estate or tangible personal property owned by a spendthrift trust and occupied or used by a beneficiary may still be protected from creditors—as long as the use or occupancy is in accordance with the trustee’s discretionary authority under the trust instrument
Settlor Creditor Rights
- Creditors of an Alaska revocable trust’s settlor can attach trust assets during the settlor’s life—regardless of whether the trust includes a spendthrift provision
- If a deceased settlor’s estate is insufficient to satisfy creditor claims, creditors may attach trust assets to satisfy claims against the estate
Domestic Asset Protection Trusts (DAPTs)
Alaska is among the states with the strongest laws authorizing Domestic Asset Protection Trusts (DAPTs)—a form of spendthrift trust that provides exceptionally strong protection from creditors:
- DAPTs are irrevocable, “self-settled” (i.e., the settlor is also beneficiary), and designed for maximum asset protection
- Assets held in an Alaska DAPT are nearly immune from attachment by most creditors
- A creditor must demonstrate that a transfer was made with intent to defraud the creditor to set aside a transfer to a DAPT
Retained Rights in Alaska DAPTs
The settlor of an Alaska DAPT can retain certain rights in the trust without sacrificing the strong protections from creditors:
- Right to act as trust advisor and advise the trustee on investments
- Right to veto distributions from the trust
- Right to appoint or remove a trustee or trust protector
- Right to decide how trust assets will be distributed after the settlor’s death
- Right to receive distributions from the trust (subject to limitations)
DAPT Requirements
Alaska DAPTs must meet precise standards specified in the authorizing statute:
- A trustee resident in Alaska
- A trust instrument expressly incorporating Alaska law
- A discretionary standard for distributions not controlled by the settlor
- A sworn affidavit by the settlor attesting that, for example, the settlor has title to transferred assets, will not be made insolvent by the transfer, does not intend to defraud creditors, and is not delinquent on child support payments
Need help creating the right estate plan for your Alaska family?
Our estate planning specialists can help you navigate Alaska’s unique laws and create a personalized strategy.
Wills vs. Trusts: Comparison
| Feature | Wills | Trusts |
|---|---|---|
| When It Takes Effect | After death | Can be immediate (living trust) or after death (testamentary trust) |
| Probate Process | Requires probate | Assets in trust avoid probate |
| Privacy | Public record | Generally private |
| Challenges | Can be challenged in probate court | More difficult to challenge |
| Cost to Create | Generally less expensive | Usually more expensive |
| Ongoing Administration | None until death | May require ongoing management |
| Protection During Incapacity | None (requires separate power of attorney) | Can provide management if grantor becomes incapacitated |
| Alaska Special Feature | Pre-death validity determination; TOD real estate deeds | Powerful DAPTs; trust protectors/advisors; pre-death validity determination |
Conclusion
Establishing wills or trusts in Alaska can be straightforward and approachable for most residents. Nevertheless, several life situations—including blended families from remarriage, responsibility for stepchildren, caring for elderly parents, providing for beneficiaries with disabilities, selecting guardians for minors, and managing business ownership—may introduce additional layers of complexity that could lead to unexpected outcomes if not properly addressed.
Alaska offers unique estate planning tools including powerful Domestic Asset Protection Trusts, transfer-on-death real estate deeds, community property options, and pre-death validity determinations for both wills and trusts. With no state estate or inheritance taxes and simplified probate for small estates, Alaska provides residents with flexible options to protect their assets and provide for their families.
When any out-of-the-ordinary issues are present, it’s advisable to consult with an experienced attorney familiar with and licensed under Alaska law to ensure your estate plan takes full advantage of the state’s provisions while avoiding potential pitfalls.
Ready to Protect Your Alaska Family’s Future?
Join the thousands of Alaska families who have secured their legacy with our personalized estate planning strategies. Our approach helps you avoid probate, protect assets, and ensure your wishes are carried out exactly as you intend.
- ✓ Avoid costly probate and family disputes
- ✓ Maintain privacy of your financial matters
- ✓ Protect assets during incapacity
- ✓ Create safeguards for children and loved ones
Explore Estate Planning Strategies
Free consultation with our estate planning specialists
THE ULTIMATE FREE DOWNLOAD
The Estate Planners Tactical Guide
Essential Legal Protection for Achievers
FAQs: Alaska Wills and Trusts
Q: What are the requirements for a valid will in Alaska?
A: A valid Alaska will must be in writing, signed by the testator (who must be at least 18 and of sound mind), and witnessed by at least two competent people. The witnesses must observe the testator signing the will or hear the testator acknowledge that the signature is authentic. Alaska also recognizes holographic wills that are signed by the testator with all material provisions in the testator’s handwriting, even without witnesses. A unique feature of Alaska law is that you can petition a court before death to validate your will, preventing future challenges.
Q: What is an Alaska Domestic Asset Protection Trust (DAPT)?
A: An Alaska Domestic Asset Protection Trust (DAPT) is a special type of irrevocable trust that provides exceptional protection against creditors’ claims. Alaska pioneered this type of trust and has some of the strongest asset protection laws in the nation. What makes DAPTs unique is that they can be “self-settled,” meaning you can be both the creator and a beneficiary of the trust while still maintaining creditor protection. The settlor can retain certain rights like advising on investments, vetoing distributions, removing trustees, and receiving discretionary distributions without sacrificing asset protection.
Q: Does Alaska have estate or inheritance taxes?
A: No, Alaska does not impose any state-level estate or inheritance taxes. This means that when assets pass to heirs, they do so without additional taxation at the state level beyond any federal estate tax that might apply to very large estates. The federal estate tax only affects estates worth more than $12.92 million per individual (as of 2023), so most Alaska residents don’t need to worry about estate taxes at all. This tax-friendly environment makes Alaska an attractive state for estate planning.
Q: What is a trust protector or trust advisor in Alaska?
A: Alaska law specifically authorizes the appointment of “trust protectors” and “trust advisors” within a trust instrument. A trust protector can be empowered to remove and appoint trustees, amend the trust for tax advantages, modify beneficiary interests, or make other significant changes without court involvement. A trust advisor provides guidance to the trustee on matters like investment of trust assets. These roles add flexibility to trust administration and allow for adjustments to changing circumstances or laws over time without requiring court proceedings.
Q: Can I transfer my real estate outside of probate in Alaska?
A: Yes, Alaska is among the states that recognize transfer-on-death (TOD) deeds for real estate. With a TOD deed, you can designate a beneficiary to receive your property automatically upon your death, while maintaining complete control during your lifetime. This allows the property to bypass probate completely. Alaska also recognizes tenancy by the entirety for married couples owning real estate, which includes automatic survivorship rights. Additionally, you can place real estate in a living trust or use community property with right of survivorship if you create a community property agreement with your spouse.
Q: How are surviving spouses protected under Alaska law?
A: Alaska protects surviving spouses through an elective share right of one-third of the deceased spouse’s “augmented estate,” even if the will provides otherwise. The augmented estate includes both probate and certain non-probate assets. Alaska also provides a supplemental elective share up to $50,000 if the surviving spouse’s interest is less than that amount. If there’s no will, a spouse receives the entire estate if the decedent had no descendants or if all descendants are also the spouse’s descendants. If the deceased spouse has children from another relationship, the surviving spouse receives $100,000 plus half of the remaining estate.
Q: Can I avoid probate with a small estate in Alaska?
A: Yes, Alaska offers simplified procedures for small estates. For estates without real property where vehicles don’t exceed $100,000 in value and remaining personal property doesn’t exceed $50,000, successors can collect assets using a small estate affidavit without formal probate. Alaska also provides for informal administration of uncontested estates, which involves less court supervision than formal probate. For larger estates or those containing real estate, consider other probate-avoidance strategies like living trusts, transfer-on-death deeds, or joint ownership arrangements.
