Mary wants to be able to take care of her sons when she is away. She decides to give an amount of money to a friend, Melanie, with the instructions that she is to use that money to care for the children when she is away. The money given to Melanie is called and Melanie is a .
A) fund; trustee
B) trust; trustee
C) endowment; money caretaker
D) deposit; trustee
E) fund; constructive trust

Question

Quizplus · Accepted Answer

The term "trust" refers to the funds or assets that are given to someone (the trustee) to manage and use for a specific purpose, usually for the benefit of another person (the beneficiary). In this scenario, Mary is giving money to Melanie with specific instructions to use it for taking care of her sons, which fits the definition of a trust. Therefore, the correct answer is B. The other options either use incorrect terminology or do not accurately describe the situation.

Mary Wants to Be Able to Take Care of Her