What is a trust?

A trust refers to a legal framework in which one individual, known as the trustee, holds the title to property for the benefit of another individual or group, referred to as the beneficiaries. This arrangement allows the trustee to manage and control the property according to the terms set out in the trust agreement, ensuring that the interests of the beneficiaries are protected. Trusts are commonly used in estate planning to facilitate the transfer of assets, provide for minors or individuals with special needs, and offer potential tax benefits.

The other options define different concepts: the second option describes a will or testamentary instrument that conveys property after death, which is distinct from the ongoing management of property seen in trusts. The third option pertains to a title search summary, which provides a history of property ownership and encumbrances, and is not related to a legal relationship regarding property management. The fourth option refers to associations that create standardized documents for title insurance, which does not represent the fundamental nature of a trust as a legal relationship involving property ownership and management.