Which term describes signs that the grantor still possesses ownership of an asset transferred to a trust?

• A. Indicia of ownership
• B. Retained interest
• C. Remainder interest
• D. Income-producing assets

Answer: (A)

Indicia of ownership describes signs that the grantor still has ownership of assets that have been transferred to a trust. In estate planning, a grantor may move assets into a trust but retain certain rights or control—such as the power to revoke the trust, to direct distributions, or to influence investments. Those continuing signs of ownership show that, for purposes like tax or probate, the grantor’s ownership characteristics persist even though the legal title sits in the trust. That’s why this term fits best: it specifically refers to the evidence or indicators that ownership remains with the grantor.

The other concepts don’t fit as neatly. A remainder interest is a future interest held by a beneficiary after the trust ends, not a sign the grantor still owns the asset. A retained interest describes ongoing rights in the asset or trust, but the term that captures the observable signs of ongoing ownership is indicia of ownership. Income-producing assets categorize the type of asset, not whether ownership persists.