As an example, let’s say that the beneficiary made a large bet at the roulette table, lost, and was not able to repay the debt. The casino probably would not be able to touch the trust fund’s principal when it goes to collect the money owed to them. Income Tax. Power of Attorney: Allowing One Person to Act on Behalf of Another Power of attorney is a legal document giving a person broad or limited legal authority to make decisions about the principal’s property, finances, or medical care. Generally speaking, there are three parties involved in all trust funds:. First, the donor establishing the trust contributes assets and immediately receives charitable-contribution tax credits. Tax benefits: Trust funds can be used in a way that maximizes estate tax bypasses so you can get more cash to more generations further down the family tree.