Account in Trust
July 19, 2014 | | Kris Tabetando | 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.
Author: Kris Tabetando
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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