What is a trust fund?

A trust fund is a legal arrangement through which a trustor (the individual setting up the trust) sets aside funds or assets to be managed by a trustee (the individual responsible for managing the trust) for the benefit of a beneficiary (the individual receiving the benefit of the trust). In South Carolina, trust funds may be established for any lawful purpose, including providing for a child’s education, healthcare expenses, and retirement. Trust funds may also be used to provide for the care of a pet or other asset after the death of the trustor. Trust funds can be funded with a variety of different assets, including cash, stocks and bonds, real property, and other valuable personal property. The trustor has the ability to provide instructions to the trustee on how to manage the trust fund and how its assets are to be used to benefit the beneficiary. When establishing a trust fund in South Carolina, a trustor can choose whether the trust will be revocable or irrevocable. A revocable trust allows the trustor to modify or revoke the trust at any time. An irrevocable trust is more permanent and cannot be changed or revoked without the consent of the beneficiary. Trust funds provide an important tool for families, particularly those with young children, to provide for their future needs. They also serve as a way to ensure that one’s assets are managed and distributed according to their wishes in the event of their death.

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