Structures
Trust Fund
A legal arrangement where assets are held by a trustee for the benefit of one or more beneficiaries, often used to protect wealth, manage succession, and align assets with family governance or philanthropic goals.
Created: 2026-05-25
A trust fund is not a type of investment product; it is a legal structure that holds assets under the control of a trustee for the benefit of designated beneficiaries.
Trust funds are commonly used to:
- protect family wealth from direct ownership risks
- preserve assets for future generations
- provide controlled distributions for education, lifestyle, or charitable purposes
- maintain privacy and mitigate probate exposure
How a trust fund works
A trust is created by a settlor (also called a grantor or donor) who transfers assets into the trust. The trustee then holds and manages those assets according to the trust document, following instructions for how and when beneficiaries receive income or capital.
A trust fund may hold many different kinds of assets, including cash, securities, real estate, company shares, insurance policies, and art.
Common purposes for trust funds
- Succession planning — using the trust to pass wealth to children or later generations without forcing immediate ownership changes.
- Governance and control — allowing the settlor to define distribution rules, invest according to agreed principles, and appoint trustees or advisors.
- Tax and jurisdictional structuring — placing assets in the right legal vehicle and location as part of wider Wealth Planning & Structuring and cross-border estate architecture.
- Philanthropy — establishing a charitable trust or donor-advised vehicle to align family wealth with social impact.
Trust funds and family office services
In a family office context, trust funds are often one component of a broader wealth architecture. A family office or advisory team will typically coordinate trust administration, trustee selection, reporting, and compliance alongside investment oversight and governance support.
For clients already working with a family office-style advisory model, trust funds are a natural complement to services like Investment & Wealth Architecture and Wealth Planning & Structuring.
This entry is part of PWA’s plain-language glossary of terms used in modern family office architecture.