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 estate planning, a trust fund is a legal entity created to hold assets, such as money, property, or investments, for beneficiaries. An estate planner might say, 'A trust fund can be set up to ensure your assets are distributed according to your wishes after your passing.'

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.

Business

Scenario:

The inheritance has significant potential for the company's future. We might need to secure the assets in a legal structure.

Response:

I agree. We should set up a trust fund for the assets. It would provide financial security for our company.