A trust fund is a fund comprised of a variety of assets, established by a grantor, to provide financial security to an individual, most often a child or grandchild - or organizations, such as a charity or other non-profit organization.A trustee manages the assets for the designated beneficiary. The grantor is the person who creates the trust and contributes the assets, and can be the same person as the trustee. The assets held in a trust fund usually consist of liquid assets like cash and marketable securities, but can also be real estate and/or privately held stock of a family business. Theoretically, a trust can hold any type of assets. Most often, a trust agreement spells out what the trustee can and cannot do with the assets, and how he or she is to use them for the beneficiaries. The agreement can be very simple, with the trustee merely dispensing funds, or quite complex, with the trustee responsible for making investment decisions. State and federal law further governs how the trustee will manage the trust fund for the beneficiaries. While trust funds are often thought of as a tool only for the very wealthy, they are a useful way for a person of any means to protect assets and inheritance from potential misuse, and provide tax benefits as well. The legal documents required to establish various trust funds are quite complex, so it’s always best to consult with an attorney or financial adviser before establishing one.