Guardianship and Power of Attorney are legal tools that enable a person to manage another individual’s assets, responsibilities, and personal affairs. While both allow someone to make decisions on behalf of another, these documents are not the same, as they grant different statuses and levels of control to the document holders. It is essential to understand the distinctions between these documents to determine which is better suited for various situations.
Key Takeaways
- Power of Attorney is a legal document that allows a person to assign decision-making responsibilities to someone they trust, such as a close friend or relative. This can include financial and medical decisions.
- Guardianship is a legal document that appoints another person as a guardian or caretaker for an individual (the ward). A court grants guardianship, which allows the guardian to make personal and financial decisions on behalf of the ward. Guardianship is necessary when someone is incapacitated.
- The main differences between Guardianship and Power of Attorney include the costs involved, who decides if the arrangement is necessary, and the revocation process. Power of Attorney is typically less expensive and can be revoked by the principal, while Guardianship requires court involvement and can only be revoked by a court.
