A trust is a:
A) form of property ownership created by the common law that separates the legal and beneficial ownership of property
B) form of property ownership created by the tort law that separates the legal and beneficial ownership of property
C) form of property ownership created by the common law that combines the legal and beneficial ownership of property
D) form of property ownership created by the common law that prevents people from stealing inheritance money from their co-inheritors
E) none of the other choices are correct

Question

Quizplus · Accepted Answer

A trust is a legal arrangement that separates the legal and beneficial ownership of property. It is a form of property ownership created by the common law. In a trust, the legal ownership of property is held by the trustee, who has a legal duty to manage the property for the benefit of the beneficiary. The beneficiary holds the beneficial ownership of the property and is entitled to receive the income or proceeds from it. Trusts are commonly used for estate planning, to provide for minors or people with special needs, or to protect assets from creditors.

A Trust Is A