orphanage

After Raine died, little Squall and Ellone were sent (I'm a little unclear on this) to Edea's orphanage on the cost of the Centra continent. The orphanage was full of little children left orphans after the Sorceress War (Squall, Quistis, Seifer, Zell, Selphie, Irvine), and Ellone became a sort of a big sister figure to them, since she was older than them for a couple of years.

I know Laguna was aware of this arrangement at one point or another, because he is seen talking to Edea about Ellone. After seeing that the kids were taken good care of, he decided to leave them there and return to his presidential duties. He had a whole empire to rebuild after Adel, after all.

About five years later Edea, whose knight had left her, sent Ellone to the White SeeD ship in fear of losing control should Ultimecia possess her. Ellone was not to be hurt, whatever the cost.