Trust Fund
A trust fund is a financial arrangement that allows a person, known as the grantor, to set aside money or assets for the benefit of another person or group, called the beneficiaries. The grantor often appoints a trustee to manage these assets according to specific guidelines. Trust funds are commonly used for estate planning, to provide for children or dependents, or to support charitable activities. The arrangement can help in managing how and when the beneficiaries receive their inheritance, often with tax advantages.
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A trust fund is a financial arrangement where assets, such as money or property, are managed by a trustee on behalf of a beneficiary. The person who creates the trust, known as the grantor, specifies how and when the assets will be distributed. Trust funds are often established to provide financial support for children or to manage wealth in a way that ensures responsible use. They can offer tax benefits and protect assets from creditors, making them an important tool for estate planning and preserving wealth across generations.