Glossary
Trust Fund
A trust fund is a legal arrangement where assets—such as money, property, or investments—are held by a trustee on behalf of a beneficiary. It is commonly used to manage and protect wealth, ensure proper distribution, and sometimes reduce estate taxes.
Who sets up a trust fund?
A trust fund is created by a grantor (or settlor), who places assets into the trust and names a trustee to manage them for one or more beneficiaries.
What types of assets can go into a trust fund?
Trust funds can hold cash, stocks, real estate, business interests, life insurance proceeds, and other valuable assets.
What’s the difference between a revocable and irrevocable trust?
A revocable trust can be changed or canceled by the grantor during their lifetime, while an irrevocable trust cannot be altered without the beneficiary's consent or a court order.
Do trust funds avoid probate?
Yes. Assets held in a trust generally bypass probate, allowing for faster, private, and more controlled distribution to beneficiaries.
Are trust funds only for the wealthy?
No. While often associated with high-net-worth families, trust funds can be useful for anyone who wants to manage how assets are distributed—especially in blended families, special needs planning, or charitable giving.
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