A trust fund is simply a fund that holds assets, like cash or investments, typically set up by a parent. Trust-fund babies, the recipients of that windfall, are often stereotyped as over-privileged, spoiled twenty-somethings with no responsibilities. While trust-fund babies may have the security of reliable income, some do not live lavishly or have the sense of superiority society assumes. Trust-fund babies — a group of over-privileged, spoiled, adult-children that people love to hate. At least, that's what society is led to believe.