Property (e.g, money or securities) held in a trust; that is, property held legally by one party (the legal owner) for the benefit of another party (the equitable owner). The legal owner, or trustee, has the right of possession and the right of use of the property, but must exercise those rights to the benefit of the equitable owner, or beneficiary. In Anglo-American law, trust funds are set up principally for family settlements and for charitable giving. In the commercial sector, trust funds are often set up to provide for employee pensions and profit-sharing programs.
This entry comes from Encyclopædia Britannica Concise.
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