What legal document establishes rules for the use of funds?

• A. Will
• B. Trust
• C. Power of attorney
• D. Prenuptial agreement

Answer: (B)

A trust is the instrument that sets the rules for how funds are to be used. The trust document lays out who can receive money, under what conditions, and when, and it designates a trustee who must follow those terms. This creates ongoing governance over assets—whether during the grantor’s lifetime (in a living trust) or after death (in a testamentary trust). By contrast, a will primarily directs what happens to assets after death but doesn’t govern ongoing management of funds, a power of attorney gives someone authority to handle finances while you’re alive and typically ends at incapacity or death, and a prenuptial agreement focuses on property rights in marriage or divorce rather than general instruction on fund use.