Harper is reviewing trust ownership before the August 2026 exam. Each statement below accurately describes ownership through a trust EXCEPT.
Correct Answer
A) The beneficiary always signs deeds because beneficiaries hold the record title to trust real estate
In a trust the trustee holds legal title and signs the deeds and other instruments that deal with trust real estate, while the beneficiary holds an equitable interest and does not appear in the record chain of title. The statement that the beneficiary always signs deeds because beneficiaries hold record title is therefore the exception. The remaining statements describe trust ownership correctly: title may be conveyed to a named trustee to hold and manage under the trust terms, the trustee commonly holds legal title, and the beneficiary's interest is beneficial or equitable.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Joint tenancy is a form of co-ownership in which two or more persons hold equal, undivided interests in property with the right of survivorship. When one joint tenant dies, their interest automatically passes to the surviving joint tenants.
A leasehold estate grants the right to possess and use property for a defined period of time, without conferring ownership.
A life estate is a freehold estate that grants ownership rights for the duration of someone's life.
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