What is a trust?

• A. A Single Person Owning Property
• B. Ownership Arrangement Where Property is Held by a Trustee for the Benefit of One or More Beneficiaries
• C. A Type of Corporate Entity
• D. A Plan for Shared Ownership Among Tenants

Answer: (B)

A trust is an arrangement where property is held by a trustee for the benefit of one or more beneficiaries. The person who creates the trust (the settlor) transfers assets to the trustee, who manages and distributes those assets according to the terms set out in the trust document. The key idea is the separation of legal ownership (with the trustee) from beneficial ownership (with the beneficiaries). This structure allows control over how assets are used and distributed, can provide privacy and probate advantages, and is a common tool in estate planning.

This differs from outright ownership by a single person, where one person holds full title and control; from a corporate entity, which is a separate legal person created for business or other purposes; and from shared ownership among tenants, which involves co-ownership rights among multiple people without a trustee managing assets for beneficiaries.