What is the difference between a trust and a guardianship?
A trust and a guardianship are two types of legal processes that involve the inheritance of property. In Michigan, a trust is an arrangement established by an individual, known as the trustor, to legally transfer their property to someone else, usually a relative or friend. This is done through a trust document, such as a will. The property is typically transferred from the trustor to the trustee, who then distributes the property to the beneficiary, as instructed by the trustor. A guardianship, on the other hand, is a legal process that gives an adult, known as the guardian, authority over a minor’s property and financial affairs. The guardian makes decisions for the minor in regards to their finances, and is responsible for protecting and managing the minor’s assets until they reach the age of majority. The guardian must keep accurate records of how the minor’s money is being spent and must ensure that the money is used in the minor’s best interests. The primary difference between a trust and a guardianship is that a trust is used to transfer property from a trustor to a beneficiary, while a guardianship is used to manage property on behalf of a minor. A trust is usually created to ensure that the trustor’s wishes are met after they pass away, while a guardianship is typically established to protect the minor’s assets until they reach adulthood.
Related FAQs
What is the difference between a trust and a guardianship?When can a will be challenged in court?
What is an upgrade/downgrade provision?
What is an inter vivos trust?
What is the purpose of a living trust?
What is an Asset Protection Trust?
What is the purpose of trust administration?
What are the taxation implications of a trust?
What is the doctrine of contra proferentem?
What is the difference between heirship and intestacy?
Related Blog Posts
Understanding the Basics of Inheritance Laws: A Guide to Successfully Navigating State and Federal Statutes - July 31, 2023How to Ensure Your Estate Plan Reflects Your Wishes Through Inheritance Laws - August 7, 2023
Protect Your Rights as a Beneficiary: Understanding Your Legal Rights After Beneficiary Inheritance - August 14, 2023
Comprehending the Duties and Responsibilities of Executors of Estates: How to Properly Administer an Estate and Fulfill Inheritance Law Requirements - August 21, 2023
Maximizing the Benefits of Inheritance Law for Family Heirs of Estates - August 28, 2023