Who are the essential parties involved in an estate in trust?

Who are the essential parties involved in an estate in trust?

• A. Owner, trustor and lawyer
• B. Owner, trustor and trustee
• C. Trustee, title company, and beneficiary
• D. Trustor, trustee and beneficiary

Answer: (D)

In an estate held in trust, three parties are essential: the trustor, who creates the trust and places assets into it; the trustee, who holds the legal title to those assets and manages them according to the trust terms and for the benefit of the beneficiary; and the beneficiary, who is entitled to receive the benefits from the trust assets. The property within the trust is owned by the trust as a entity, not by the individual outside the trust, once the transfer to the trust occurs, so the owner is not an essential participant in the ongoing trust arrangement. A lawyer or title company may assist in establishing or administering the trust, but they aren’t core parties to the trust itself.

In an estate held in trust, three parties are essential: the trustor, who creates the trust and places assets into it; the trustee, who holds the legal title to those assets and manages them according to the trust terms and for the benefit of the beneficiary; and the beneficiary, who is entitled to receive the benefits from the trust assets. The property within the trust is owned by the trust as a entity, not by the individual outside the trust, once the transfer to the trust occurs, so the owner is not an essential participant in the ongoing trust arrangement. A lawyer or title company may assist in establishing or administering the trust, but they aren’t core parties to the trust itself.