A trust fund is a fund held in a trust by a trustee or trust company; a legal entity that holds property or assets for the benefit of another (the beneficiary).
[Last updated in August of 2021 by the Wex Definitions Team]...
wex definitions
trust fund recovery penalty (TFRP)
A trust fund recovery penalty (TFRP) is a hefty fine charged for an employer knowingly or willfully keeping employee FICA and income taxes owed to the IRS. Employers retain taxes owed by an employee to the IRS from their paychecks and submit...
trust fund taxes
Trust fund taxes (also known as payroll taxes) are FICA taxes paid by an employer on employee wages which include the Social Security and Medicare taxes. The employer is required to keep their share and the employee share of FICA taxes in a...
trust instrument
A trust instrument is a writing declaration or agreement to allocate a settlor’s property to their beneficiaries. It consists of the trust and regulates how the trust is executed. Trust instruments can be amended or revoked by the settlor at...
trust intent
Trust intent refers to the specific intention or purpose behind the creation of a trust by the settlor (the person who establishes the trust). This intent determines how the trust’s assets are to be managed, distributed, and used for the...
trust merger
Trust merger is when the sole trustee and the sole beneficiary of the trust are the same person or institution. When this occurs, there is no longer separation between the trustee’s legal ownership of the trust property and the beneficiary’s...
trust property
Trust property, also known as trust corpus or trust res, refers to the assets and property placed into a trust by the grantor (also called the settlor or trustor). It is the property that is the subject of the trust and must be presently...
trust protector
A trust protector is a role with specific duties that is assigned by the trust document in order to fulfill the purpose of the trust. In the Uniform Trust Code Section 808, the trust protector is defined as “a person other than the trustee or...
trust res
Trust res, also named as trust corpus, principal, subject matter, or trust property, is the property that is transferred into a trust. The term “corpus” is Latin for "body.” A trust corpus is the "body" of the trust. It is the property that...
trustee
A trustee is a third party who is authorized by a settlor to execute and manage trust assets. A trustee holds the title of the trust asset. A trustee is a requirement of an express trust along with trust property, trust intent, and definite...