When it comes to estate planning, two of the most common tools you’ll hear about are wills and trusts. While they’re often mentioned together, they serve very different purposes—and understanding those differences can make a big impact on how your assets are handled and how easy things are for your loved ones.

Let’s break it down in a simple, practical way.

What Is a Will? A will is a legal document that outlines your wishes for what happens after you pass away. With a will, you can decide who receives your assets, name a guardian for minor children, and appoint an executor to carry out your wishes

A will only goes into effect after your death and must go through a legal process called probate, where the court validates the document and oversees distribution.

What Is a Trust? A trust is a legal arrangement that allows a third party (called a trustee) to hold and manage assets on behalf of your beneficiaries. Unlike a will, a trust can take effect while you’re still alive and continue after your death. With a trust, you can control how and when assets are distributed, potentially avoid probate, maintain more privacy and plan for incapacity (if you become unable to manage your affairs).