Wills and trusts are two of the most important tools in building an estate plan. While most people understand the purpose and function of a will, many people are not familiar with how trusts work. Wills and trusts are used for similar purposes, but they operate very differently.

A will is a legal document that specifies your wishes for your estate after your death. In it, you describe your assets, prescribe what will happen to those assets, appoint a guardian for minor children and dependents, and appoint an executor to carry out your wishes. If your will goes into probate, the court determines the validity of the will and administers the property of estate.

A trust differs from a will in that property does not go through probate after your death. With a trust, your assets are transferred into the trust while you are alive. You retain control of the trust and all assets until your death. Upon your death, your appointed trustee is responsible for distributing your trust pursuant to its terms.