What is the difference between a guardianship and a power of attorney?

In Utah, a guardianship and a power of attorney are two separate legal tools used for different purposes. A guardianship is a court-appointed arrangement where a guardian is legally responsible for making decisions on behalf of an incapacitated adult, or minor. The court will appoint a guardian after a finding of legal incapacity that produces a showing of need to have a guardian. The guardian has the same legal rights of a parent and is responsible for all decisions related to the individual’s care, medical decisions, and financial matters. A power of attorney is a legal document that allows someone to appoint an agent or “attorney-in-fact” to manage their financial matters, such as managing bank accounts, writing checks, or paying bills. The person signing the power of attorney document is called the principal, and the agent they appoint is the attorney-in-fact. A principal must have the legal capacity to enter into a power of attorney agreement, unlike a guardianship which is typically ordered by a court for incapacitated individuals. Both legal instruments must be established correctly – a power of attorney by signing the document and a guardianship by filing the documents with the court. It is important to understand the difference between these two legal instruments as they can have major implications for the principal and/or guardianship.

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What is the difference between a guardianship and a power of attorney?

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