What is the difference between a guardianship and a trust?

A guardianship and a trust are both legal options that can be utilized to protect children and their assets. In Florida, a guardianship is a court-supervised process that is used to appoint a person or organization to be responsible for the care of a minor child or an individual who is unable to properly manage their own affairs. The guardian makes decisions with respect to the minor’s education, medical care, and other matters. Furthermore, a guardian may be appointed to manage the minor’s assets, like money or property. On the other hand, a trust is an arrangement in which a property owner, called a “settlor,” transfers ownership and control of property to another individual, called a “trustee.” The trustee then manages the property for the benefit of a third party, called a “beneficiary.” A trust can provide the same protection for minors and vulnerable adults as a guardianship and can be used for the management of assets. However, trusts do not require court oversight, and the settlor has more control over the terms of the trust. For example, a settlor can define how trust assets are managed and specify when the assets should be distributed to the beneficiary.

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What is the difference between a guardianship and a trust?

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