What is the difference between a guardianship and a trust?

A guardianship and a trust are different legal mechanisms used to protect the interests of an individual or their assets. A guardianship is a legal arrangement in which a guardian or caretaker is responsible for making decisions on behalf of the person they are responsible for, called a ward. In New Jersey, guardians are appointed through one of two methods – either through the Superior Court or through a voluntary private guardianship agreement. A trust, on the other hand, is an arrangement in which a trustor places assets into a trust, and a trustee is appointed to manage those assets in the best interest of the trustor. In New Jersey, there are many types of trusts, such as a revocable or irrevocable trust, special needs trust, living trust, and many more. The main difference between a guardianship and a trust is that a guardianship is used to manage a person’s personal wellbeing and a trust is used to manage a person’s assets. In a guardianship, the guardian has the authority to make healthcare decisions, financial decisions, and other decisions for the ward, whereas a trust only has the authority to manage and protect the trustor’s assets such as money, real estate, and other possessions. Additionally, in New Jersey, guardianships must be formally established and supervised by the court, whereas a trust is established and supervised by the trustee.

Related FAQs

What are the duties of a guardian?
How is a conservatorship different than a guardianship?
What is the court process for guardianship?
How does a guardianship end?
What is a guardianship of the minor?
How do you select an appropriate guardian?
What are the legal requirements for guardianship?
What is a guardianship for a child?
What is a voluntary guardianship?
Can guardians be named for minors?

What is the difference between a guardianship and a trust?

Related FAQs

Related Blog Posts