Trust Account
Definition
- An account used by a law firm or real estate agent to control funds set aside for costs associated with a real estate transaction. This account also holds any other money put forth by the buyer and seller before the closing.
Synonyms
money, grant, reserved funds, will
Related Terms and Acronyms
- Earnest Money Deposit (EMD) — Acronym,
- Money given by a buyer when making a formal offer to demonstrate that the buyer is serious. Also called a deposit.
➥ A down payment. - Escrow — Definition,
- An account in which money for property taxes and insurance is held until paid. Money is added to the account every time a mortgage payment is made.
- Escrow Account (EA) — Acronym,
- An account in which money for property taxes and insurance is held until paid; money is added to the account every time a mortgage payment is made.
- Escrow Agent — Definition,
- A neutral third party who holds the documents and money in a real-estate transfer until all conditions are met.
- Informal Trust — Definition,
- Also known as in-trust account or "bare" trust, this is an investment account registered in an adult's name in trust for a child. The account is used to save/invest funds for a child, and the funds must be reserved for and used by the beneficiary child.
- Trust — Definition,
- A fund established like a will, specifying how money or property will be disbursed, lists the recipients or beneficiaries and names one or more trustees to manage the assets. An irrevocable trust can't be changed after the terms are finalized; a revocable trust has more legroom in how much can be transferred, but is usually costlier to maintain.
