What can you tell me about trust funds and how they are managed?

Answer by  patti (29325)

When a trust fund is set up, an executor is appointed. The terms of the trust are spelled out as to what the funds are to be used for and when. The executor makes sure these terms are abided.

Answer by  Att4372 (1704)

A grantor set up a trust (with cash or stock or property). A trustee manages the trust. One or more parties (beneficiaries) are entitled to receive income, and possibly some principal, from the trust. Someone has to pay income tax - depending on setup, either the grantor or beneficiary.

Answer by  Kurt (4579)

Trust funds are set up by wealthy individuals where money is set aside for a special purpose ( for example - an heir that can live on the interest the fund generates, or a charity that receives the funds ). There is legal documents and restrictions that have followed.