Property OwnershipIntermediateCalifornia Exam

When a property is held in trust, who holds legal title?

AThe beneficiary
BThe trustor
CThe trusteeCorrect
DThe court

Why The trustee Is Correct

Answer C: The trustee

In a trust arrangement, the trustee holds legal (bare) title to the property for the benefit of the beneficiary. The beneficiary holds equitable title.

Exam Tip: Property Ownership

Property ownership questions test the bundle of rights and different forms of ownership. Know the differences between joint tenancy, tenancy in common, and community property, including the right of survivorship.

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