The Average Trust Fund Amount (How Do You Compare?)

What’s the average trust fund amount?

In this article, you’ll learn about:

Let’s dig in.

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The average trust fund amount in the United States is $1,227,000.
The total value of trust fund assets in the US is $31.6T.
~10% of US households have a trust fund.
College tuition trust funds have an average trust fund amount of $30,000.
Life insurance trust funds have an average trust fund amount of $285,000.
Business succession trust funds have an average trust fund amount of $2,750,000.
Retirement savings trust funds have an average trust fund amount of $2.5 million.
Tax-deferred trust funds have an average trust fund amount of $10 million.
Spendthrift trust funds have an average trust fund amount of $550,000.
The average trust fund amount for women is lower than that for men, at $942,000 compared to $1,505,000.
Those with graduate degrees have an average of $1.8M in trust funds.
Those with bachelor’s degrees have an average of $1.2M in trust funds.
Trust funds with a value of $5 million or more make up less than 1% of all trusts.
Trust funds with a value of less than $100,000 make up about 45% of all trusts.
Trust funds with a value of $1 million or more make up about 20% of all trusts.
The average trust fund amount for single people is $840,000.
The average trust fund amount for married couples is $1.7 million.
The average trust fund amount for households with children is $985,000.
The average trust fund amount for households without children is $1.4 million.

A trust fund is a legal setup where a trustee holds and manages assets for beneficiaries.

The assets in a trust fund can be in the form of:

Trust funds get set up to give the beneficiaries:

Trust funds can get used for a variety of purposes, including:

Providing for children or grandchildren. Parents or grandparents can use a trust fund to provide financial support. It can get used for things like education, medical expenses, or other living expenses.
Managing inherited assets. Trust funds are often used to manage assets that get inherited by minors. These individuals may not have the financial expertise to manage the assets on their own.
Estate planning. Trust funds can get used as part of an estate plan. They allow you to transfer assets to beneficiaries while minimizing tax liabilities.
Charitable giving. Charities may create trust funds to receive donations and manage assets.
Special needs planning. Trust funds can get used to provide for those with special needs or disabilities. This ensures they have access to necessary care and support throughout their lives.

The average trust fund amount in the United States is $1,227,000.

The total value of trust fund assets in the US is $31.6T.

This table shows the average trust fund amount by type of trust.

Trust Fund Type	Range
College Tuition Trust Funds	$10,000 - $50,000
Retirement Savings Trust Funds	$1 Million - $10 Million
Estate Planning Trust Funds	$250,000 - $1 Million
Charitable Trust Funds	$10,000 - $50 Million
Special Needs Trust Funds	$500 - $100,000
Investment Trust Funds	$100,000 - $10 Million
Life Insurance Trust Funds	$25,000 - $1 Million
Business Succession Trust Funds	$500,000 - $5 Million
Tax-Deferred Trust Funds	$500,000 - $100 Million
Spendthrift Trust Funds	$100,000 - $1 Million

This table shows the average trust fund amount by age group.

There are several advantages to setting up a trust fund, including:

Asset protection. Trusts can protect assets from creditors, lawsuits, and other potential threats. A trust can help protect assets from potential divorce settlements or bankruptcy proceedings.
Tax benefits. Depending on the type of trust, there may be tax benefits. These include avoiding estate taxes or reducing income taxes.
Privacy. Wills become public record after death. But trusts are private documents, which can help keep family affairs confidential.
Control. A trust allows you to control how your assets get managed and distributed after death. This can help ensure that your wishes get carried out.
Flexibility. Trusts can get structured in a variety of ways to meet the needs and goals of the creator and beneficiaries. A trust can provide ongoing support to a beneficiary or distribute assets in a lump sum.

Here are the general steps involved in setting up a trust fund:

Determine the type of trust. Types of trusts include revocable and irrevocable trusts, living trusts, and testamentary trusts. The type of trust you choose will depend on your specific goals and needs.
Choose a trustee. A trustee handles managing the trust assets and carrying out the wishes of the creator. The trustee can be an individual, such as a family member or friend. Or they can be a professional trustee, such as a lawyer or financial institutions.
Identify the beneficiaries. The beneficiaries are the individuals who will receive the assets from the trust. They can be individuals or organizations, such as charities.
Draft the trust document. The trust document is a legal agreement that outlines the terms of the trust. This includes how the assets will get managed and distributed. The document should get drafted by an attorney who is familiar with trust law.
Fund the trust. Once the trust gets established, assets must be transferred into the trust. This can include cash, securities, real estate, or other types of property.
Sign the trust document. The creator of the trust must sign the trust document in the presence of a notary public.
Provide copies of the trust document. Copies of the trust document should be provided to the trustee and all beneficiaries.

Documents needed to set up a trust fund typically include:

The trust document. This is the legal agreement that outlines the terms of the trust.
The asset transfer documents. These documents are needed to transfer assets into the trust. These are things like deeds for real estate or stock certificates for securities.
Identification documents. The creator of the trust and the trustee may be required to provide identification documents. These include a driver’s license or passport, to verify their identity.
Notarization documents. The trust document may need to get notarized to ensure that it is legally valid.

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