Who holds title and manages the property in a trust?

Who holds title and manages the property in a trust?

• A. Beneficiary
• B. Trustee
• C. Grantor
• D. Heir

Answer: (B)

Trust assets are managed by the trustee, who holds the legal title to the property placed in the trust and administers it according to the trust terms for the benefit of the beneficiaries. The beneficiary benefits from the assets but does not run or title them. The grantor is the person who creates the trust and transfers assets into it (and may even be the trustee in some setups, especially revocable trusts), but the essential holder of title and daily management is the trustee. Heirs come into play if property passes outside the trust, but they aren’t the ones who hold or manage trust property.

Trust assets are managed by the trustee, who holds the legal title to the property placed in the trust and administers it according to the trust terms for the benefit of the beneficiaries. The beneficiary benefits from the assets but does not run or title them. The grantor is the person who creates the trust and transfers assets into it (and may even be the trustee in some setups, especially revocable trusts), but the essential holder of title and daily management is the trustee. Heirs come into play if property passes outside the trust, but they aren’t the ones who hold or manage trust property.