What is a trust fund?

A trust fund is a legal arrangement in which one person or organization (the “trustee”) holds assets or property (the “trust assets”) for the benefit of another person or organization (the “beneficiary”). In Washington, trust funds are often used in Elder Law to ensure that the elderly are taken care of financially and have access to important resources. Trusts can provide for medical and long-term care needs, protect assets from creditors and reduce the amount of taxes that may be due. Trusts can be revocable or irrevocable, depending on the wishes of the person or organization that establishes the trust. In revocable trusts, the person or organization (the “grantor”) can make changes to the trust or dissolve it at any time, while irrevocable trusts are permanent. Trust funds can also be used to provide for beneficiaries after the grantor has passed away. Trusts can be established to provide for financial support during the beneficiary’s lifetime, or they can be set up to provide for their future needs such as college tuition or retirement. In the state of Washington, trust funds are regulated by the Uniform Trust Code, which provides guidelines and restrictions on how trust funds may be used.

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What is a trust fund?

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