A fund held in trust is a financial arrangement where money or assets are held by a third party on behalf of two other parties. This type of arrangement is often used in real estate transactions, where the third party, known as an ESCROW, holds the funds until all conditions of the agreement have been met. The term 'ESCROW' is derived from the Old French word 'escroue, ' which means a scrap of parchment or paper that was sealed in a container and used to authenticate a document.