What is the difference between a trust and a guardianship?
A trust and a guardianship are both legal arrangements that allow for someone to manage the assets of an individual. However, they are distinct in certain aspects. A trust is a legal document that is established by the trustor, which is the person in charge of the trust. It provides the trustor with control over the assets in the trust and how they are managed. The trust is managed by a trustee, someone selected by the trustor. The trustee will be responsible for managing the trust in accordance with the trustor’s wishes. The trustor will not have direct control over the trust, as the trustee will be responsible for all decisions. A guardianship, on the other hand, is a legal arrangement established by the court. This is usually put in place when the person who needs assistance (the ward) is incapacitated and unable to make decisions for themselves. A guardian is then appointed by the court and will be responsible for managing the ward’s assets and making decisions on their behalf. This is usually done for the benefit of the ward, as they are not able to make decisions for themselves. In conclusion, the major difference between a trust and a guardianship is the way in which they are established. A trust is established by the trustor and is managed by a trustee, whereas a guardianship is established by the court and is managed by a guardian.
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