Trust Fund Legal Meaning and Definition

Here is a simplified definition of the legal term Trust Fund.

Trust Fund (noun)

A Trust Fund refers to a financial arrangement that allows a third party, known as a trustee, to hold and direct assets on behalf of a beneficiary. The assets can include real estate, money, stocks, bonds, or other forms of financial resources. The trust fund comes into existence through the generous contributions of donors or the accumulation of profits. This legal structure is commonly used to manage wealth across generations, protect assets, or support charitable organizations.