What is the difference between a guardianship and a trust?

Guardianship and trust are two legal concepts that are often discussed together but their definitions and functions can be quite different. Guardianship is a legal relationship in which someone other than the parent is given the responsibility and authority to care for a minor child. In Nevada, a guardianship is established when a court grants custody of a child to another adult. This could be due to a death, illness, or some other extenuating circumstance. The guardian is granted specific authority to make decisions and act on behalf of the child. They may be responsible for providing the day-to-day care and upbringing of the child and managing their financial affairs. A trust is an arrangement in which assets are managed by one individual (the trustee) for the benefit of another individual (the beneficiary). The trustor sets forth the terms of the trust, which could include instructions on how assets are to be managed, when funds are to be disbursed, and who should receive them. The assets themselves are held by the trustor and the trustee has control over how the assets are managed and distributed. The key difference between a guardianship and a trust is that the guardianship is for the care and upbringing of a minor child while a trust is an arrangement for managing and distributing assets. A guardianship is established through the court, while a trust is established through the trustor.

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What is the difference between a guardianship and a trust?

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