---
title: What are Fiduciary Funds?
description: Montana local governments use fiduciary funds to manage assets held for others. Trust Funds support long-term obligations for external beneficiaries, while Agency Funds handle temporary custodial responsibilities. These funds ensure accountability and proper stewardship of resources not owned by the government.
---

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November 10, 2025

# What are Fiduciary Funds?

## Fiduciary Funds: Managing Resources Held in Trust by Montana Local Governments

Fiduciary Funds are used to account for resources held by the government but that are intended to benefit parties other than the government itself. There are two types of fiduciary funds.  
• Trust Funds — are used to account for assets that the government holds as a trustee for the benefit of parties other than the government itself.  
• Agency Funds —are generally used to account for assets that a government temporarily holds as an agent for other parties.

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