What is the difference between a guardianship and a trust?

The main difference between a guardianship and a trust in New Hampshire is the legal purpose of each. A guardianship is a court-supervised relationship wherein an adult is appointed by the court to manage the finances and other decisions of a minor or adult who is unable to do so due to physical or mental disability. A trust, on the other hand, is a legal entity in which a person, known as the grantor, transfers assets and property into the trust and appoints a trustee to manage and distribute the trust assets accordingly. Whereas a guardianship is generally intended to provide protection and care for those unable to care for themselves, a trust is used to manage and invest assets for the benefit of the grantor and the trust beneficiaries. Trusts are also used for tax planning and asset protection, whereas guardianships are more limited in their purpose. Guardianships are typically established with the goal of protecting the welfare of the ward, whereas trusts are established to provide for the grantor’s family and other beneficiaries in the future. In New Hampshire, guardianships must be approved by the court, and the guardian must be an adult who is willing to accept the responsibility. Trusts, however, are established by the grantor and do not require court approval. Additionally, the terms of a trust may be modified or revoked by the grantor at any time, while guardianships tend to be more permanent.

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What is the difference between a guardianship and a trust?

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