A guardianship is created by a court order that places the business affairs (estate) and/or the health/well-being of a person in the hands of another person, organization or corporation.

Guardianships are ordered for minor children, as well as, any person determined to be mentally incompetent or physically incapable of caring for themselves. The person for whom a guardianship is established becomes a ward of the State of Texas for which the appointed guardian becomes responsible for their estate and the person (well-being). Individuals may execute anticipatory documents naming potential guardians for their minor children, as well as, executing requisite documents identifying a potential guardian for themselves in case of future need.

In certain circumstances, the court may initiate a guardianship action based on an investigation that there may be a need for a guardian for a person who is unable to manage his/her estate or aspects of daily living and/or are potential subjects of exploitation or self-neglect. Letters of Guardianship issued by the court empowers a third party to care for the estate and well-being of the ward.