What is the difference between a trust and a guardianship?

Trusts and guardianships are both legal arrangements that are used to manage the assets of a person who is not able to do so themselves, either due to age or illness. In Oregon, trust and guardianship laws are overseen by the court system. The primary difference between a trust and a guardianship is the purpose of each. A trust is established to manage property and assets, while a guardianship is established to make decisions and provide care for a person who is unable to do so for themselves. Trusts are used to protect the assets of someone who can no longer manage them, while guardianships are used to protect the person who cannot manage their own affairs. In a trust, a person, often referred to as a trustee, is appointed to manage the assets of the trust. The trustee is responsible for investing and managing the assets according to the rules and guidelines of the trust. The trust will also name beneficiaries, who will inherit the assets upon the death of the trustor. A guardianship, on the other hand, is a legal arrangement in which a court appoints an individual or an organization to make decisions and provide care for someone who is unable to do so for themselves. A guardianship will give the guardian the right to make decisions about medical care, as well as other matters such as where the person should live and how their finances should be managed. In summary, trusts and guardianships are similar in that they are both legal arrangements used to manage the assets of someone who cannot do so for themselves. However, their purposes differ, trusts being used to manage assets and guardianships being used to provide care and manage decisions on behalf of the person who cannot do so for themselves.

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