What is a trust fund?

A trust fund is a legal arrangement that is used to manage assets for the benefit of a particular person or group. In Kansas, trusts are created when someone known as the grantor sets aside assets such as money, real estate, or stocks for the benefit of another person or group, known as the beneficiary. The grantor appoints a trustee to manage the trust assets and act in the best interests of the beneficiary, typically according to specific instructions in the trust document. Trust funds can be used to provide financial support for a beneficiary, usually in the form of regular payments or cycles of payments. They are often used to provide for the long-term health and welfare of a designated beneficiary. The trust fund is generally established as part of the grantor’s estate plan, and may include provisions for inheritance tax planning or to protect assets from creditors. Trust funds can also be established for charitable purposes. In this case, the grantor sets aside assets for the benefit of a particular charity or causes, with the trustee managing the assets for this purpose. In any case, the trustee must adhere to the instructions provided in the trust document, and has a fiduciary responsibility to act in the best interests of the beneficiary or cause.

Related FAQs

What is a living trust?
What is a family trust?
Can I set up a trust without legal help?
What are the duties of a trustee?
How can I create a trust?
What is a trust modification?
How do I choose a trustee for my trust?
What is a revocable trust?
How do I transfer real estate into a trust?
What is a tax-free trust?

What is a trust fund?

Related FAQs

Related Blog Posts