Is delivery to the beneficiary required for trust property to exist?

• A. Yes.
• B. No.
• C. Sometimes.
• D. Only for real property.

Answer: (B)

Delivery to the beneficiary is not required to create a trust. A trust comes into existence when there is clear intention to create one, and the trust property is placed under a trustee’s control for the benefit of identifiable beneficiaries (or for a valid charitable purpose). The trustee holds legal title to the property, while the beneficiary has or will obtain the beneficial interest. This can happen with existing property or future property, and it can be created by a declaration or by transfer to a trustee. For real property, the usual step is transferring the deed to the trustee, which sets up the trust, but that deed or transfer does not require handing the assets directly to the beneficiary at creation. The critical point is shifting control and ownership to a trustee for the benefit of someone, not delivering assets to the beneficiary at the outset.