What exactly is a trust-fund baby?
the fool on the hill asked:
I know it means the parents set up some kind of financial aid for the child, but what does it entail?
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Filed Under Personal Finance |
Tagged With Financial Aid, Parents, Trust Fund Baby
Comments
One Response to “What exactly is a trust-fund baby?”
It’s a description of someone who was born into money. His parents, grandparents, great grandparents had money. The child never had to work and probably won’t have to in the future because his relatives put aside enough money to support him/her for the rest of his/her life. The money is usually put into a trust so that the child cannot spend the capital, but merely the interest on the funds, then the capital passes on to the child’s child.