What is the term for the appropriation of funds from trust for specific purposes?

The term for the appropriation of funds from a trust for specific purposes is accurately referred to as "appropriation of funds." This phrase captures the essence of taking funds from a trust account and using them for designated purposes, which can be legitimate or improper depending on the context and legality. It conveys a sense of intentionality in the usage of the funds, which is critical in legal discussions surrounding trust management.

In legal settings, the terminology surrounding the management of trust funds is essential. Appropriation indicates that there is a specific intention behind the movement of funds, distinguishing it from more general mismanagement or misuse. This means that if someone intentionally takes money from a trust to benefit a specific cause or purpose without proper authority or justification, it falls under this definition.

Conversion of funds typically refers to the unauthorized taking of someone else's property, and misappropriation more narrowly addresses the illegal or wrongful handling of funds for personal gain. Trust mismanagement is a broader term that can cover various failures to fulfill fiduciary duties but does not specifically indicate the purposeful allocation of funds. Thus, "appropriation of funds" is the most precise term for the situation described.