Provided by Carol Anderson, Anderson Wealth Advisors

What is guardianship?

A guardianship can help you manage your property if you are unable to care for your possessions yourself. A court proceeding to appoint a guardian occurs after you have become incapacitated. Someone, usually a relative or friend, must petition the court for guardianship. The court hears the facts and, if it finds that you are physically or mentally unable to manage your own financial affairs, it will appoint a guardian of the estate. (Guardianship of the person refers to making personal and medical decisions for that person. Guardianship can also refer to the legal care of children.)

Provided by Carol Anderson, Anderson Wealth Advisors

 

What is a living trust?

A living trust is a separate legal entity that you create to own property for you (like a house, boat, or mutual fund shares). You transfer all or some of your property to the living trust as soon as it is established (this is called funding the trust). People generally adopt living trusts to avoid probate entirely or to pass specific property outside the probate process, but it is also a tool you can use to give someone the power to manage your property for you if you become incapacitated. The following is a limited discussion about how a living trust can be used as such a tool. There are many other factors about living trusts that you may also want to consider.