trust-fund

Vocabulary Word

Definition

A 'trust fund' is a financial tool set up to hold assets, like cash or property, to benefit a person or organization. The person who gets it usually can't use all the money whenever they want.

Examples in Different Contexts

In wealth management, trust funds are used as a tool for managing and protecting family wealth across generations. A wealth manager might explain, 'Trust funds help in tax planning and preserving wealth for future heirs by providing structured distributions.'

Practice Scenarios

Finance

Scenario:

Let's discuss your wealth management strategy. Given your financial goals, we need to consider tax-efficient arrangements.

Response:

Great, let's discuss setting up a trust fund as part of the wealth management plan to achieve my financial goals.

Law

Scenario:

With the legal dispute resolution, there's a substantial financial outflow to manage. We need to formulate an arrangement to streamline it.

Response:

Yes, setting up a trust fund would be a prudent course of action to manage settlement payouts.