What is the difference between a trust and a guardianship?
A trust and a guardianship are two types of legal structures that are often used in inheritance law in Alabama. Both are designed to ensure that assets are managed in the best interests of an individual. A trust is an arrangement in which a person, known as the trustee, holds legal title to property on behalf of another person or a group of people, known as the beneficiaries. The trustee is responsible for managing the trust property, typically in accordance with the wishes of the settlor (person creating the trust). A trust in inheritance law can be used to protect assets and ensure that they are distributed to the beneficiaries according to the settlor’s wishes. In contrast, a guardianship is a legal arrangement in which a court appoints an individual to manage the personal and financial affairs of someone who is unable to do so, typically due to age or disability. The guardian is responsible for managing the protected person’s assets and making decisions about their health and wellbeing. A guardianship in inheritance law can be used to ensure that a person’s assets are protected, and that they receive the care and attention they need. In summary, a trust is an arrangement in which a trustee holds legal title to property on behalf of beneficiaries, while a guardianship is a legal arrangement in which a court appoints an individual to manage the personal and financial affairs of someone who is unable to do so. Both can be used in inheritance law in Alabama to protect assets and ensure that they are managed in the best interests of an individual.
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