Trust fund structure

Background: I don't really know where to ask this, so here goes nothing. I'm lucky enough to have several sizable irrevocable trust funds and am curious about how distributions usually occur. I heard many people just get the whole lump sum amount on their 21st birthdays or 18, or 25 doesn't matter.... All together, my structure pays out around 0.5%-1% of the total amount of all trusts every year until I'm like 40. And even then I don't get total control ever... Currently Im fortunate that my parents pay for college tuition and living expenses separately but I think that informal arrangement ends once I graduate.. Theoretically, I could live off this small 0.5% but I plan (and my parents very much expect me) to have a full career. 

Question: For people with similar structures, what do you for work? I have planned on going into finance for a long time, well before I knew about my trusts. I would have a decent chance (3.8+ gpa, target school, strong experience and network), but more recently people have been scaring me. Burnout, suicide, depression, poor health... Is it worth working 100 hour weeks in banking when finances are not a large concern, particularly in the long-term? 


Question simplified: While I hate to use this term, what do "trust fund babies" do for work and how many of them do you actually see in finance? 


edit: 0.5% is enough for 1-2 bedrooms in major US downtown, eating all meals out, several nice vacations a year.. not enough for second home (unless I saved for many years), flying business, and bottle service every weekend (but enough for a $16 negroni) 

Comments (7)

  • Prospect in IB-M&A
Feb 9, 2021 - 5:07pm

I hope this doesn't come across as rude, but what does the 0.5% roughly amount to? That might help answer the question.

Feb 9, 2021 - 5:12pm

Im guessing ur trust is between 10-20 million... since 0.5% would be 50k-100k or enough to live on. Most kids with that level of wealth, in my experience break down into 5 buckets.

1- girls who go into fashion- aka stay at home daughter 

2- girls who go into philantrophy often with the family donor advised fund- aka stay at home daughter 

3- coke heads

4- dudes who go into real estate. lighter hours, a little more social and fun,

5- kids who start their on random businesses. (like a distillery, a bar, or an app). fun project, but you will usually loose money 


if you had real balls you'd go to vegas and put it all on black 13 though 

Feb 9, 2021 - 5:38pm

Entrepreneurship but got work experience for a couple years. Try to do something in a high growing industry (tech, blockchain, etc.). You have a luxury not many people have. Maybe you'll become a billionaire if your stars align. 


Feb 9, 2021 - 5:48pm

this guy will probably have a good chance based on his trust alone.. If he is able to return 7%-10% for the rest of his life and keep his expenses middle-class (assuming he has like a 10 million trust fund) he will be a billionaire at least before taxes

Feb 9, 2021 - 6:02pm

Billion is not gonna be worth as much in 50-60 years....


  • 1
Feb 9, 2021 - 5:45pm

I never get why trust fund kids often spiral out of control. If I was given a bunch of money, I would feel so indebted and appreciative towards my parents that I would do anything to make them proud. It would motivate me to get a 4.0 or work 140 hour weeks. 

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