In a declaration where a person signs as trustee and the assets are to be held for a beneficiary, what is the result?

• A. A trust has been created.
• B. No trust because intention is unclear.
• C. It is a simple gift to the beneficiary.
• D. It creates a joint tenancy.

Answer: (A)

When a person signs as trustee and states that the assets are to be held for a beneficiary, a trust is created. The trustee holds the legal title to the assets and administers them for the beneficiary’s benefit, who acquires the equitable interest. This shows clear intention to benefit another person, which is the essential setup for a trust. It isn’t a simple gift, because the trustee remains as the holder of the legal title and must manage the assets for the beneficiary, not transfer full ownership outright. It also isn’t a joint tenancy, which involves co-ownership with survivorship rights, a structure that a trust does not use.