A memorial or scholarship fund is a special type of fund that is created in remembrance of someone else to pay future tuition. A scholarship fund is a special type of trust that is setup to deliver scholarships to qualifying individuals, with the person who setup the fund able to create their own qualifications and selection process. Once the scholarship fund is registered appropriately (with its own structure and EIN), it is able to deliver these scholarships under the guidance of a trustee.
Scholarship funds are very frequently made in the memory of a loved one. Usually they are anywhere from $25,000 to $50,000 to start, to be able to give small scholarships out to those who have applied. A scholarship fund can also be larger, and the proceeds from the assets within the fund can be used to disburse scholarships. A financial professional can help in the building of a scholarship fund, and many universities have their own structures for creating one.