Dennis died recently leaving all his assets in a trust for h

Dennis died recently leaving all his assets in a trust for his wife, Sandy. Dennis was concerned that Sandy would not be able to manage her money adequately to maintain her standard of living. Therefore, Dennis placed the assets into a spendthrift trust and gave Sandy the right to receive a certain amount of income each year. Dennis appointed his good friend Richard to be the trustee of the trust. How is Richard s ownership classified?

a. Richard holds a life estate over the property

b. Richard holds the legal title to the property

c. Richard holds the equitable title to the property

d. Richard does not hold an interest in the property

Solution

The correct answer is (b) that Richard holds the legal title to the property

As a trustee has a fiduciary responsibility for the managing trust . A trustee is a party to whom the gantor is transferred the property and the trustee gets a legal title over the property that is placed in a trust