A trust fund baby is a person who is born into a family with money. Often, this person is privy to a large inheritance of money, generally through a trust fund. The phrase became popular with the emergence of wealthy American families in the 20th century, and the rise of a generation of children born into inherited money. The term is most notably used to describe 21st century socialites like Paris Hilton and Nicole Ritchie, born respectively into the fortunes of the Hilton Hotel empire and the earnings of father Lionel Ritchie.

In the case of many rich families in the United States, like the Hiltons, who are worth billions of dollars, a trust is established early for the child. The property or holdings of the parents are put into a trust and managed by the parents until the child is of age to manage the wealth themselves, often 18, 25, or until the original holder is deceased. Before this age, the trust fund baby will live at home on the money of the parents, who often obey every purchasing whim of the child.

The trust fund baby may emerge as a prominent socialite, as in the cases already mentioned. They may, conversely, further the wealth of their families and establish themselves in the business communities of their parents. Because of the wealth and the name possessed by the trust fund baby, endless college opportunities are available to them. The motivated trust fund baby may find themselves at any of a number of Ivy League schools, pursuing any of a number of prominent careers, popular among them being law or business.

The trust find baby, however, may fall into the trap of early wealth and big city life. Like Paris Hilton, this kind of trust fund baby is equally loved and hated by the media and the population. Often described as spoiled and lazy, the person may not be very in tune with the life lived by the people around them, sensitive to the feelings of the helpers and workers who make their comfort possible, or possessing of an ability to handle a job or a level of independence.

The money inherited by the trust fund baby is often spent on tropical estates, lavish living arrangements, countless vehicles, or long nights out on the town. Trust fund babies are often accused of buying friends or buying their way into the spotlight. Often the name attached with the trust fund baby carries with it a level of fame and opportunity for success, as well as a certain degree of respect, awe, resentment, and envy.