Guardianship is a court-appointed legal relationship in which a guardian manages personal and/financial affairs for a minor or incapacitated person. In insurance and estate planning,guardianship affects who can consent, sign applications, change beneficiaries, and receive proceeds for minors. Well-drafted plans aim to minimize the need for guardianship by using trusts, durable powers, and beneficiary designations that avoid court supervision.

Advisors help families avoid guardianship by titling assets to trusts and using durable powers. When Guardianship is necessary, they coordinate court approvals for policy changes and claims handling for minors.