In November 2026, Grace transferred a duplex 'to Harbor Trust Company, as trustee of the Stone Family Trust, for the benefit of her two children.' Assuming the trust is valid, what interest do the children most likely hold?
Correct Answer
D) Equitable or beneficial interests under the trust
In ordinary trust ownership, the trustee holds legal title and manages the property under the trust terms, while the beneficiaries hold the beneficial or equitable interest. The children therefore benefit from the trust property even though they are not the record title holders.
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Related Topics & Key Terms
Key Terms:
Related Concepts
In a cooperative (co-op), the building is owned by a corporation, and residents purchase shares of stock in the corporation that entitle them to a proprietary lease on a specific unit. Residents are shareholders, not property owners.
Fee simple absolute is the highest and most complete form of property ownership, giving the owner unrestricted rights to use, possess, enjoy, and dispose of the property. It is of unlimited duration and fully inheritable.
Community property is a system where property acquired during a marriage is owned equally by both spouses.
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