What is a trust fund?
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At its core, a trust fund is money or other assets that are given to a person (the beneficiary) with restrictions on how they can retrieve it. The restrictions can be only X withdrawn per month, holding the funds until a certain age, requiring some other performance (as judged by the trust fund manager) to access the money, or something else. This money is said to be “held in trust.”
The big benefit to a trust is that the held asset isn’t actually owned by the beneficiary, so for example if they get sued and owe a lot of money, the trust is legally a separate entity that isn’t liable for the debt.
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