Guardianship
Estate planningGlossary term
Definition
A legal arrangement in which a court appoints a person to make personal, financial, or healthcare decisions for someone who is unable to care for themselves, such as a minor child or an incapacitated adult. In estate planning, parents typically name a preferred guardian for their minor children in their will. Without a designated guardian, a court will decide who will care for your children, which may not reflect your wishes.
Related terms
- WillA legal document that outlines how you want your assets distributed and your affairs handled after your death. A valid will typically names an executor to carry out your wishes, designates beneficiaries to receive your property, and can also name guardians for minor children. Without a will, state laws determine how your estate is divided, which may not align with your preferences.
- ConservatorshipA court-ordered arrangement in which a judge appoints a person or organization, called a conservator, to manage the financial and personal affairs of an adult who is deemed unable to care for themselves. Conservatorships are typically established for individuals with severe cognitive impairments, mental health conditions, or physical disabilities. They involve significant court oversight and can be difficult to reverse, making them a measure of last resort when less restrictive options like power of attorney are not in place.
- Power of AttorneyA legal document that grants another person, called an agent or attorney-in-fact, the authority to make decisions and act on your behalf in financial, legal, or healthcare matters. A power of attorney can be limited to specific transactions or broadly cover all financial affairs, and it can take effect immediately or only upon your incapacitation. Having a power of attorney in place ensures that someone you trust can manage your affairs if you become unable to do so yourself.
- Healthcare ProxyA legal document that designates a trusted person to make medical decisions on your behalf if you become unable to make or communicate those decisions yourself. The person you choose, sometimes called a healthcare agent, should understand your values and wishes regarding medical treatment. A healthcare proxy works in conjunction with a living will to ensure your healthcare preferences are honored.
Get advice that uses your real numbers
Warren reads your accounts and explains what terms like this mean for your plan. Free to start, no credit card required.