An arrangement that allows a third party to hold and control assets on behalf of a beneficiary is called what?

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Multiple Choice

An arrangement that allows a third party to hold and control assets on behalf of a beneficiary is called what?

Explanation:
A trust is the arrangement where someone transfers assets to a trustee to hold and manage for the benefit of a beneficiary. The trustee, a third party, holds legal title and has a fiduciary duty to manage the assets according to the trust terms, making distributions to or for the beneficiary as specified. The beneficiary is the person who ultimately benefits from the trust. A trustee is the individual who actually holds and controls the assets, but the mechanism itself is called a trust. A beneficiary is the recipient, and a codicil is simply an amendment to a will.

A trust is the arrangement where someone transfers assets to a trustee to hold and manage for the benefit of a beneficiary. The trustee, a third party, holds legal title and has a fiduciary duty to manage the assets according to the trust terms, making distributions to or for the beneficiary as specified. The beneficiary is the person who ultimately benefits from the trust. A trustee is the individual who actually holds and controls the assets, but the mechanism itself is called a trust. A beneficiary is the recipient, and a codicil is simply an amendment to a will.

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