Kim and Kanye Set 7-Year-Old Daughter North West Up With A $10 Million Trust Fund

North West, the firstborn daughter of Kanye West and Kim Kardashian, probably will not experience many financial worries over the course of her life. North turned seven years old in June 2020, but her parents are apparently already planning decades into her financial future. According to a source who spoke to Hollywood Life, Kim and Kanye intend to establish a trust fund worth $10 million that North will be able to access when she turns 21. That means North could receive an eight-figure financial windfall on June 15, 2034, before she has even graduated from college. The money is supposedly intended to ensure that North has the freedom to pursue her interests without worrying about earning a living. According to the source:

"He wants her to create, innovate, and leave her mark on this world. And he's planning for her future as we speak."

In other words, Kanye does not necessarily expect his daughter to spend her adult life sitting beside a swimming pool doing nothing. The idea is apparently to give her enough financial independence to focus on creative projects, businesses, fashion, music, art, or whatever else she chooses to pursue.

Just a Little Spending Money

For almost any other family, a $10 million trust fund would represent a life-changing fortune capable of supporting several generations. In the Kardashian-West family, the money is apparently viewed as little more than a very generous 21st birthday present. The source explained:

"It's simple. He wants her to always live the life she's going to be accustomed to. That's just spending money for her when she reaches 21. They got a whole lot more set up for her in case something were to happen to both he or Kim."

That last sentence is especially interesting. It suggests the $10 million account is not North's entire future inheritance or her family's only financial protection. Kim and Kanye have presumably also established wills, insurance policies, estate-planning vehicles, and other trusts for their children.

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How Will the Trust Reach $10 Million?

Kim and Kanye have supposedly already set aside $5 million toward North's trust fund, with plans for the account to contain $10 million by the time she turns 21. It is not clear whether they plan to contribute the remaining $5 million over time or expect some of the increase to come from investment returns. If the entire $5 million were invested and left untouched for 14 years, it would need to earn an average annual return of roughly 5% to grow to around $10 million. That is mathematically possible, although actual investment returns are never guaranteed. Kim and Kanye could also simply deposit more money into the account whenever they choose. Considering their combined wealth and annual earnings, contributing another $5 million over the next 14 years would not be especially difficult.

What Exactly Is a Trust Fund?

A trust allows someone to place money or other assets under the control of a trustee for the benefit of another person. The trust documents establish when the beneficiary can receive the money and what conditions, if any, must be satisfied. Kim and Kanye could structure North's trust so that she receives the entire balance at 21. They could also allow her to withdraw only a portion at that age, followed by additional distributions when she turns 25, 30, or 35. The trust might also limit withdrawals to specific expenses such as education, housing, healthcare, starting a business, or making investments. Without access to the actual documents, there is no way to know whether North will receive an unrestricted $10 million payment or a more carefully controlled series of distributions.

What About Kim and Kanye's Other Children?

North is the oldest of Kim and Kanye's four children. Her younger siblings are Saint, Chicago, and Psalm West. It is not known whether the couple has created identical $10 million trusts for the other three children. Presumably, Kim and Kanye would want to establish comparable financial arrangements for each child, even if the amounts and distribution dates are not exactly the same. Setting aside $10 million for each of their four children would require a total of $40 million. That is obviously an enormous amount of money, but it would represent only a fraction of the couple's combined fortune.

North Could Build a Fortune of Her Own

North may not need to rely exclusively on her parents' money. She has been famous since birth, has appeared on "Keeping Up with the Kardashians," and is growing up with direct access to the worlds of television, music, fashion, beauty, and consumer products. Should she eventually launch a clothing line, beauty brand, television project, social media business, or music career, North could begin accumulating significant personal earnings years before she receives anything from the trust. And even if she never follows her parents into entertainment or business, a $10 million payment at 21 should give her plenty of options.