What is the difference between a trust and a guardianship?
In Florida, the primary differences between a trust and a guardianship are the individuals who create, maintain, and benefit from them. Trusts are created by a person or legal entity, such as a business, while guardianships are created by a court. Trusts are maintained and managed by a trustee, who is appointed by the creator, whereas guardianships are maintained by a guardian who is appointed by the court. Lastly, trusts provide assets or resources to a beneficiary who is designated by the creator, whereas guardianships provide protection and care to a ward who is also designated by the court. Trusts are commonly used for estate planning, such as distributing assets to specific individuals or organizations after the creator’s death. Guardianships, on the other hand, are often used when an individual, such as an elderly person or a minor, is unable to make decisions for themselves and requires an appointed individual to make decisions on their behalf. In both cases, trust and guardianship funds are safeguarded from creditors, and all assets or resources must be managed in accordance with the law. Additionally, trustees and guardians must report to the court on how they are maintaining the trust or guardianship. Ultimately, trust and guardianship funds are used to provide protection and care to individuals who are unable to provide for themselves.
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