Endowment vs. Trust — What's the Difference?

A donation to institutions for sustained support.

Entity for estate planning and asset distribution.

Fund intended to generate income while preserving principal.

Legal arrangement for asset management.

Investment fund for a specific purpose.

Tool for achieving specific financial or estate goals.

A legacy gift to benefit future generations.

Framework for managing specific assets.

Permanent financial asset for organizations.

Protective measure for assets and beneficiaries.

The act of endowing.

Firm belief in the integrity, ability, or character of a person or thing; confidence or reliance

Funds or property donated to an institution, individual, or group as a source of income.

The condition and resulting obligation of having confidence placed in one

A natural gift, ability, or quality.

One in which confidence is placed.

Something with which a person or thing is endowed.

Custody; care

Property or funds invested for the support and benefit of a person or not-for-profit institution.

Something committed into the care of another; a charge

(insurance) Endowment assurance or pure endowment.

Reliance on something in the future; hope

(Mormonism) A ceremony designed to prepare participants for their role in the afterlife.

Reliance on the intention and ability of a purchaser to pay in the future; credit

The act of bestowing a dower, fund, or permanent provision for support.

A legal relationship in which one party holds a title to property while another party has the entitlement to the beneficial use of that property.

That which is bestowed or settled on a person or an institution; property, fund, or revenue permanently appropriated to any object; as, the endowment of a church, a hospital, or a college.

The confidence reposed in a trustee when giving the trustee legal title to property to administer for another, together with the trustee's obligation regarding that property and the beneficiary.

That which is given or bestowed upon the person or mind; gift of nature; accomplishment; natural capacity; talents; - usually in the plural.

The property so held.

Natural qualities or talents

An institution or organization directed by trustees

The capital that provides income for an institution

A combination of firms or corporations for the purpose of reducing competition and controlling prices throughout a business or industry.

The act of endowing with a permanent source of income;

To have or place confidence in; depend on

To have confidence in allowing (someone) to use, know, or look after something

To expect with assurance; assume

To give credence to; believe

To place in the care of another person or in a situation deemed safe; entrust

To extend credit to.

To have or place reliance; depend

To be confident; hope.

Confidence in or reliance on some person or quality.

Dependence upon something in the future; hope.

Confidence in the future payment for goods or services supplied; credit.

That which is committed or entrusted; something received in confidence; a charge.

That upon which confidence is reposed; ground of reliance; hope.

(rare) Trustworthiness, reliability.

The condition or obligation of one to whom anything is confided; responsible charge or office.

(legal) The confidence vested in a person who has legal ownership of a property to manage for the benefit of another.

(legal) An arrangement whereby property or money is given to be held by a third party (a trustee), on the basis that it will be managed for the benefit of, or eventually transferred to, a stated beneficiary; for example, money to be given to a child when he or she reaches adulthood.

A group of businessmen or traders organised for mutual benefit to produce and distribute specific commodities or services, and managed by a central body of trustees.

(computing) Affirmation of the access rights of a user of a computer system.

(transitive) To place confidence in, to rely on, to confide in.

To have faith in; to rely on for continuing support or aid.

(transitive) To give credence to; to believe; to credit.

(transitive) To hope confidently; to believe (usually with a phrase or infinitive clause as the object)

(transitive) to show confidence in a person by entrusting them with something.

(transitive) To commit, as to one's care; to entrust.

(transitive) To give credit to; to sell to upon credit, or in confidence of future payment.

To rely on (something), as though having trust (on it).

To risk; to venture confidently.

(intransitive) To have trust; to be credulous; to be won to confidence; to confide.

To sell or deliver anything in reliance upon a promise of payment; to give credit.

(obsolete) Secure, safe.

(obsolete) Faithful, dependable.

(legal) of or relating to a trust.

Assured resting of the mind on the integrity, veracity, justice, friendship, or other sound principle, of another person; confidence; reliance; reliance.

Credit given; especially, delivery of property or merchandise in reliance upon future payment; exchange without immediate receipt of an equivalent; as, to sell or buy goods on trust.

Assured anticipation; dependence upon something future or contingent, as if present or actual; hope; belief.

That which is committed or intrusted to one; something received in confidence; charge; deposit.

The condition or obligation of one to whom anything is confided; responsible charge or office.

That upon which confidence is reposed; ground of reliance; hope.

An estate devised or granted in confidence that the devisee or grantee shall convey it, or dispose of the profits, at the will, or for the benefit, of another; an estate held for the use of another; a confidence respecting property reposed in one person, who is termed the trustee, for the benefit of another, who is called the cestui que trust.

An equitable right or interest in property distinct from the legal ownership thereof; a use (as it existed before the Statute of Uses); also, a property interest held by one person for the benefit of another. Trusts are active, or special, express, implied, constructive, etc. In a passive trust the trustee simply has title to the trust property, while its control and management are in the beneficiary.

A business organization or combination consisting of a number of firms or corporations operating, and often united, under an agreement creating a trust (in sense 1), esp. one formed mainly for the purpose of regulating the supply and price of commodities, etc.; often, opprobriously, a combination formed for the purpose of controlling or monopolizing a trade, industry, or business, by doing acts in restraint or trade; as, a sugar trust. A trust may take the form of a corporation or of a body of persons or corporations acting together by mutual arrangement, as under a contract or a so-called gentlemen's agreement. When it consists of corporations it may be effected by putting a majority of their stock either in the hands of a board of trustees (whence the name trust for the combination) or by transferring a majority to a holding company. The advantages of a trust are partly due to the economies made possible in carrying on a large business, as well as the doing away with competition. In the United States severe statutes against trusts have been passed by the Federal government and in many States, with elaborate statutory definitions.

Held in trust; as, trust property; trustmoney.

To place confidence in; to rely on, to confide, or repose faith, in; as, we can not trust those who have deceived us.

To give credence to; to believe; to credit.

To hope confidently; to believe; - usually with a phrase or infinitive clause as the object.

To show confidence in a person by intrusting (him) with something.

To commit, as to one's care; to intrust.

To give credit to; to sell to upon credit, or in confidence of future payment; as, merchants and manufacturers trust their customers annually with goods.

To risk; to venture confidently.

To have trust; to be credulous; to be won to confidence; to confide.

To be confident, as of something future; to hope.

To sell or deliver anything in reliance upon a promise of payment; to give credit.

Something (as property) held by one party (the trustee) for the benefit of another (the beneficiary);

Certainty based on past experience;

The trait of trusting; of believing in the honesty and reliability of others;

A consortium of independent organizations formed to limit competition by controlling the production and distribution of a product or service;

Complete confidence in a person or plan etc;

A trustful relationship;

Have confidence or faith in;

Allow without fear

Be confident about something;

Expect and wish;

Confer a trust upon;

Extend credit to

It provides a stable, ongoing source of funding, supporting the institution's mission, programs, or maintenance over the long term.

Yes, a trust can have multiple beneficiaries, and the terms can specify how and when the assets are distributed among them.

Generally, endowments are intended to be permanent, but modifications can sometimes be made with legal approval or if the terms allow flexibility.

Trusts are regulated by state laws and must operate according to the terms of the trust agreement and applicable legal statutes.

A term endowment is one that exists for a specified period before its principal is available for use, as opposed to a permanent endowment.

Yes, a trust can hold an endowment as part of its assets, especially if the trust's purpose includes supporting charitable activities.

No, trusts can be useful for anyone interested in managing their assets, protecting wealth, or planning for the future, regardless of the estate size.

Yes, individuals can create endowments, often through a significant donation to an institution, designated for a specific purpose.

Yes, charitable trusts are specifically designed to benefit charitable organizations or causes, providing tax benefits and supporting philanthropy.

The main difference lies in their purpose: endowments support institutions indefinitely, while trusts manage assets for beneficiaries according to specific terms.

Once its terms are fulfilled, a trust can be dissolved, or it may continue if it has ongoing purposes or additional beneficiaries.

Donations to endowments, particularly those associated with nonprofit organizations, are often tax-deductible to the extent allowed by law.

Trustees are appointed by the settlor based on trustworthiness, ability to manage the trust, and willingness to serve in the role.

Many endowments come with donor-imposed restrictions on their use, but unrestricted endowments also exist to support the institution's general needs.

Setting up an endowment involves donating to an institution with specific terms, while creating a trust requires legal documentation and may involve an attorney to ensure it meets the settlor's goals and legal requirements.