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When you hear the word “will,” you might picture an old movie with a British lawyer droning, “To my beloved Agatha, I leave my diamond collection.” But wills aren’t just for the uber-wealthy or drama-filled families. They’re for anyone who cares what happens to their worldly possessions – and their family – after they’re gone. And that’s pretty much everyone. What all wills have in common is that they’re your chance to speak from beyond the grave about what you want.

Wills don’t work alone – they need to be part of your estate plan and even more broadly, your estate plan should be part of your financial plan. But there’s more than one type of will, and picking the right one for you could make life a whole lot easier for your loved ones. The opposite is also true – doing it “wrong” could make life very difficult. That’s why we think you should always work with an estate planning attorney, in collaboration with a tax professional and financial advisor.

As a first step, it’s smart to become familiar with the language of wills. Let’s get started.

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WHAT IS A WILL, AND WHY DOES IT MATTER IN FINANCIAL PLANNING?

A will is a document that shares your wishes for:

• Who should receive your money and possessions when you’re gone (the heirs)
• Who should oversee this process on your behalf (the executor or personal representative)
• Who should raise any minor children you leave behind (the guardian)

Wills are one component of an estate plan that should also include powers of attorney (to handle your financial affairs if you can’t), health care proxies (to make health care decisions if you can’t) and beneficiary designations (on assets like retirement accounts and life insurance, which are not controlled by your will).

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COMMON TYPES OF WILLS EXPLAINED

SIMPLE WILL

Think of a simple will as the “classic” option – the vanilla ice cream of estate planning. It’s straightforward: you say who gets what, name an executor (and guardian if you need one) and you’re done. After your estate is settled (the assets gathered, bills paid, income tax return filed) ... Poof! The executor sends the money and it lands in your heir’s bank account.

It can do the job if your estate isn’t complicated and you just want to make sure your kids don’t have a falling out over grandma’s china.

Bonus: It’s usually the most affordable and easiest to draft.

TESTAMENTARY TRUST WILL

A simple will lets you dictate who gets your stuff, but not when or how. A testamentary trust created within a will gives you more control. It sets up an irrevocable trust after you pass away, which means you can say how and when everything is distributed. Want your kids to get their inheritance at 30 instead of 18? Or make sure they use it for college and not a sports car? This will has got your back.

Keep in mind, trusts are more complex to set up, and you’ll also need to designate a trustee to manage the trust.

JOINT WILL

Joint wills are options in some states, but they are rare and not generally recommended. A joint will, typically used by spouses, lays out what happens when one partner dies and then the other. Sounds romantic, right? Well, here’s the catch: They’re hard to change once the first person dies. So, it’s better to have your own will.

MIRROR WILL

Mirror wills are like joint wills’ more flexible cousin. They’re two separate wills that “mirror” each other – usually made by couples who share wishes, like leaving everything to each other and then to the kids. The beauty? Unlike a joint will, each person can change their own will later if life throws a curveball.

There could be a downside, though. There is no protection from the possibility that your spouse may remarry after you die, change his beneficiaries and disinherit your kids.

POUR-OVER WILL

Sounds like fancy coffee, but this is a kind of will you should have in conjunction with a living trust, which is a trust you set up while you’re still alive. It ensures that at your death, all your assets and possessions are distributed according to the terms set in your living trust, so nothing gets missed.

HOLOGRAPHIC WILL

A holographic will is a handwritten will that is written and signed by the testator (person creating the will). It sounds simple, but it is legally risky and unreliable. They are typically only used in emergency situations. Think of an individual that has been in an accident or has a sudden illness and they fear they can’t get a will drafted before they pass away.

LIVING WILL (ADVANCE DIRECTIVE)

This kind is not truly a will like the others. It’s used for a different purpose: to share your health care wishes if you can’t speak for yourself. Think of it as your voice in tough medical situations. Do you want life support? Organ donation? A living will answers those questions so your loved ones don’t have to guess.

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CHOOSING THE RIGHT TYPE OF WILL FOR YOUR FINANCIAL SITUATION

Not all wills are one-size-fits-all. The right choice depends on your life stage, assets and family dynamics. If you’re single with a few assets, a simple will might be enough. Got young kids or want to control when they inherit? A testamentary trust created in your will could be your best bet, or possibly a pour-over will in conjunction with a living trust. The key is to match your will to your financial complexity and future goals.

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WILLS VS. REVOCABLE LIVING TRUSTS: UNDERSTANDING THE DIFFERENCE

Here’s the short version: Wills go through probate – a public and potentially expensive court process. Revocable living trusts, on the other hand, can help your designated representative skip probate and keep things private and more streamlined. Revocable living trusts also give your designated representative – called a successor trustee – quick access to your assets after you’ve passed away. This enables the successor trustee to pay your bills and keep the lights on in your house while your estate is being administered.

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HOW A FINANCIAL ADVISOR CAN HELP WITH ESTATE DOCUMENTS

A financial advisor can’t tell you how to structure your estate plan or draw up the documents for you, but they can be a valuable partner in this process, looking to ensure everything is working together to help you reach your goals, during your lifetime and beyond.