trust fund noun
: money that belongs to one person but is legally held or managed by another person or by an organization
: property (as money or securities) settled or held in trust
Examples of TRUST FUND
- She paid for college out of a trust fund set up for her by her grandfather.
First Known Use of TRUST FUND
trust fund noun (Concise Encyclopedia)
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.
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