Delivery of trust property to the beneficiary is required to create a trust.

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Multiple Choice

Delivery of trust property to the beneficiary is required to create a trust.

Explanation:
A trust comes into existence when someone clearly intends to hold property for another’s benefit and places that property under the control of a trustee (or declares the trust over property they already own). The key action is transferring control of the property to the trustee, not giving the property directly to the beneficiary. Delivering to the trustee establishes the trust relationship, with the trustee holding legal title for the benefit of the beneficiary who has the equitable interest. If property is delivered to the beneficiary, that would typically be a gift, not a trust. There are two common paths: an inter vivos transfer to a trustee to hold in trust, or a declaration of trust by the settlor over property they already own. In either case, the beneficiary’s rights flow from the trust arrangement, not from taking possession at creation.

A trust comes into existence when someone clearly intends to hold property for another’s benefit and places that property under the control of a trustee (or declares the trust over property they already own). The key action is transferring control of the property to the trustee, not giving the property directly to the beneficiary. Delivering to the trustee establishes the trust relationship, with the trustee holding legal title for the benefit of the beneficiary who has the equitable interest. If property is delivered to the beneficiary, that would typically be a gift, not a trust. There are two common paths: an inter vivos transfer to a trustee to hold in trust, or a declaration of trust by the settlor over property they already own. In either case, the beneficiary’s rights flow from the trust arrangement, not from taking possession at creation.

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