When people say trust fund…

[Ginjp]

I imagine six figures. Is this incorrect? I assume it’s a case by case basis and massively varies but do others have the assumption it’s a huge sum rather than 10 or 20k?

I think it depends on the context - the govt gave lump sums of £ between certain years of birth, these were ‘trust funds’, which could then be topped up.
DSS had one that us and his mum topped up, had about 8k in it when he turned 18

Yeah it can mean two things.

Money a rich family lets their kids have when they reach maturity. This could be limitless wealth.

A finite amount the Labour government invested for all new borns in the early 21st century. This is likely be a few grand.

Normally it implies someone has access to lots of money e. G wealthy trust fund babies- the type from wealthy families. But a trust fund can be any amount of money e. g if we die before our daughter is 18, her inheritance will go into a trust for her. We're not wealthy.

In the context you describe I’d say 6 or even 7 figures. I know people who pay for school fees from trust funds - so definitely 6 figures and I’ve come a cross a few living off trust funds but also living in mortgage free million pound houses and very much living the high life…..so 7 figures. DH also has a very good friend who has a significant trust fund, gifted central London home and also earns well into 6 figures.

Traditionally trust funds were a way of passing down generational wealth.

They are also government topped up funds set up around the 2000s that parents can add to.

My dsd recently got really excited because she thought her trust fund meant she was getting ££££ 🤣🤣

When I think trust fund I think 6-7 figures yeah. If it’s in the 5 figures I’d refer to it more as savings for a child/gift. That’s just my personal interpretation though.

I thought a trust fund paid out a sum, perhaps several hundred, each month to wealthy children/teens. This is based on US TV shows though 😂I'm not sure what I thought happened after that though. Is that a thing or have I totally misunderstood? The old govt child trust funds were just savings to me.

A trust fund to me is the few hundred quid DC we're given from the government.

If I hear 'trust fund' I think of anything from 50k -> 7 figures.

For the government scheme I'd expect to hear 'child trust fund' and they can have anything from £500 upwards depending on how much parents added.

CTFs are accessible at 18, normal trust funds can have whatever age desired set or be discretionary (ie no definite right of access).

Any amount of money left to a minor in a will is held in trust !

The "child trust fund" I consider just to be a child savings vehicle (cemented by the fact that they all become ISAs.

I'd consider a trust fund to be money put away for a child until they were a certain age, possibly with people assigned to oversee its use while the child was younger, and likely to be a fairly substantial sum (it it was less substantial sum, I think you would just give it to the child!).

‘Trust fund’ I would assume lots of money/wealth.

If it’s the government one I’d expect people to say Child Trust Fund.

A thread yesterday showed the majority of posters assumed the first when ‘Trust Fund’ was used when it was actually the second being discussed.

My eldest has a child trust fund. Set up by the Labour Government and we've paid in to it since then. It's currently at about £25k.

The Tory / Libdem coalition government then abolished the scheme so my youngest has an ISA. We have to pay in more to keep up as the trust fund earns more money.

We didn't pay in extra to our CTF as no way did I want my DDs to get access to get unfettered access to money at 18.

It varies completely

I know people with trust funds who don’t need to work and live very well, and others who get 15 or 20k a year

My children had some compensation which went into a trust fund so it’s not just government trust funds (aswell as generational wealth trust funds)

I benefit from a trust fund from my grandparents before they passed away which is split between myself, my siblings and my cousins on that side. 8 of us in total.

I think the total in the pot is in the region of £2million, I get about £10k a year.

No my bank was going to put few grand on trust. For me it was mainly to ensure the money was safe for her and no one could nab it haha mainly for security if anything happened to me.

Any amount of money can be placed in trust, but I know what you mean - the whole idea of a ‘trust fund baby’ suggests someone who is set up for life. In reality though most family trusts are for much smaller amounts!

It can be for any amount, we have left our money between our children, with a set percentage into a trust fund for each grandchild deducted before the split into our children if that makes sense. but if a child dies before us their portion will be divided between their children and be added to their trust fund. So each fund could be enough for perhaps a house deposit or a small house depending who dies when and how much is left when we die !