What is the difference between a guardianship and a trust?

The difference between a guardianship and a trust in Colorado is an important distinction to understand. A guardianship is a legal relationship established by court order between an individual or institution (the guardian) and a minor or incapacitated adult (the ward). The guardian has the authority to make decisions about the ward’s health, safety and well-being. A trust is a legal arrangement in which one person (the trustee) holds title to property for the benefit of another person (the beneficiary). The trustee is responsible for managing the trust property for the beneficiary’s benefit. A guardianship usually involves a court-appointed guardian whose responsibility is to make decisions about the ward’s care. The ward may be a minor or an adult incapable of making decisions for themselves. The guardian must act in the best interests of the ward and follow the court’s instructions. A trust is usually established by a written document, such as a will or an affidavit. The trust is managed by a trustee who is appointed by the document’s creator, and who has a fiduciary duty to the beneficiary. In Colorado, a guardian is appointed by a court, and a trust is generally created by an individual. The guardian is responsible for making decisions on behalf of the ward, while the trustee is responsible for managing the trust property for the beneficiary’s benefit. A guardianship can be terminated by court order, while a trust can be terminated by the document’s creator, or upon the occurrence of a specific event (such as the death of the beneficiary).

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What is the difference between a guardianship and a trust?

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