What is a trust fund?
In: 9
My brother had a trust fund! Basically, mom (rightfully) didn’t think he’d be able to handle a big inheritance. So instead of just passing his share of her estate to him, she set up a trust fund (I got to be a co-trustee!)
All the money got put into a separate bank account and brokerage account; the trustees then handed over a certain amount of money each month.
The trustees are required to spend money only on things that match the trust requirements. In my brother’s case, that was anything for his health, welfare and happiness, so it was a pretty broad category.
The trustees also have a duty to be careful with the money. We didn’t invest in bitcoin, for example, and picked investments that were more likely to maintain their value over time. We also had to consider his likely needs.
Latest Answers