What is the difference between a guardianship and a trust?

A guardianship and a trust in North Carolina are two different legal tools used to protect and manage assets and/or care for minors or incapacitated individuals. A trust is a legal agreement created by the individual prior to his or her incapacity, which is used to manage finances and/or assets of an estate or trust for a designated beneficiary. A trust is usually created to help ensure that assets are managed in a specific way or to provide financial protection for a minor or other beneficiary. In contrast, a guardianship is a legal arrangement where a court will appoint an individual, typically a close family member, to make decisions for and provide care for an incapacitated individual or a minor. In North Carolina, guardians are responsible for managing the incapacitated individual’s assets and finances. They can also make decisions regarding medical care and general day-to-day care. The biggest difference between a guardianship and a trust is that a guardianship is established by a court while a trust is created and managed by the individual prior to his or her incapacitation. In addition, a guardianship is typically a more long-term solution than a trust, as it can last until the individual regains capacity or until a minor reaches adulthood. Furthermore, guardianships require court approval and oversight, while trusts generally do not require court involvement.

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What is the difference between a guardianship and a trust?

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