What is a trust fund?

A trust fund is a legal agreement that allows an individual or organization to manage assets on behalf of another person. In the context of elder law in Virginia, a trust fund is established by a senior citizen to manage their finances, typically after they become unable to do so for themselves. The trust fund is governed by the terms of the trust document and is managed by a designated trustee. Trusts are a beneficial financial tool for seniors because they empower them to decide how their finances are managed and protected. With a trust fund, a senior can specify how their investments are used, how the funds are spent, and who to leave them to upon their death. Depending on the setup, the trust may also provide tax benefits. In Virginia, there are various types of trusts that seniors can choose from to meet their needs. Revocable trusts offer flexibility while irrevocable trusts are more secure and can be useful for disability planning. The Virginia Department of Aging and Rehabilitative Services is a great source of more information about trust funds and other elder services.

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What is a trust fund?

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