What is the difference between a guardianship and a trust?

A guardianship is a legal arrangement that places an individual in charge of another person’s financial and personal affairs. This arrangement is typically used when the person in need of a guardian is a minor or an adult who is unable to make decisions for themselves due to mental or physical disability. The guardian has legal authority to make decisions for the person in need such as deciding where they should live, who will take care of them, and how the person’s finances should be managed. A trust is a legal arrangement that allows one person or entity to hold assets for the benefit of another individual or entity. This means that the trustee holds the assets, and can manage them according to the instructions in the trust. This arrangement is typically used when an individual wants to transfer assets to a beneficiary, without having to go through the probate process. The trustee is responsible for managing the assets, and following the instructions specified in the trust. In summary, a guardianship is a legal arrangement that gives an individual authority to manage the affairs of another person, while a trust is a legal arrangement that allows one person or entity to manage assets for the benefit of another person.

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What is the difference between a guardianship and a trust?

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