TeachMeFinance.com - explain trust fund
trust funds -- Government funds that are designated by law as trust funds (regardless of
any other meaning of that term). Trust funds display the revenues, offsetting receipts or offsetting
collections, and outlays that result from implementation of the law that designated the fund as a
trust fund. The federal government has more than 200 trust funds. The largest and best known finance
major benefit programs (including Social Security and Medicare) and infrastructure spending (the
Highway and the Airport and Airway Trust Funds).
trust fund -- an amount of capital which a person (the trustor) places in custody of a trustee to be administered for the benefit of another (the beneficiary).
About the author
Copyright © 2005 by Mark McCracken, All Rights Reserved. TeachMeFinance.com is an informational website, and should not be used as a substitute for professional financial or legal advice. TeachMeFinance.com and its owner recommend consultation with a professional financial advisor prior to any investment or financial decision. Please read our disclaimer.