Account in Trust

July 19, 2014  |     |     |   0 Comment

An account in trust is an account managed by an individual (or firm) for the use and benefit of another individual (or firm) who is called the beneficiary.

A trust fund can be classified as an account in trust. The fund is set up by a trustor. It is managed by a trustee for the benefit of the beneficiary.

A much simpler example is a parent opening a child’s savings account under the Uniform Gifts to Minors Act. The parent approves all withdrawals until the child reaches legal age.

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Kris Tabetando provides mergers & acquisitions (M&A) advisory and brokerage services to Internet companies. He also partners with investors to acquire & manage Internet businesses.

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