In a trust, who holds legal title to the trust property and administers distributions?

• A. Trustee
• B. Beneficiary
• C. Grantor
• D. Testator

Answer: (A)

In a trust, the person who holds legal title to the trust property and administers distributions is the trustee. The trustee acts as a fiduciary, managing the trust assets, making investments, and distributing income and principal according to the terms of the trust instrument. Beneficiaries, by contrast, hold the equitable or beneficial title and are the recipients of distributions, not the ones who manage or hold legal title. The grantor (also called the settlor) creates the trust and transfers property into it, though they may name the trustee and can sometimes be a beneficiary themselves in certain arrangements. The term “testator” refers to someone who creates a will, not a trust.