A guardianship is a legal process where a court appoints an adult to care for a child or manage their property if their parents are unavailable due to death, incapacity, imprisonment, or loss of parental rights. There are two types of guardianships - a guardian of the person is responsible for the child's care and custody, while a guardian of the estate manages the child's money and assets. The court considers nominations from the parents and input from others to appoint guardians, so it is important for parents to formally nominate preferred guardians and backups in their wills.