Ace the California Real Estate Exam 2026 – Unlock Your Dream Career Today!

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How is property owned under a trust arrangement?

The beneficiary owns the title directly.

The title is held by the trustee on behalf of the beneficiary.

A trust arrangement involves a trustee holding the title of the property on behalf of the beneficiary. This allows the trust to protect and manage the property for the benefit of the beneficiary. Option A is incorrect because the beneficiary does not directly own the property. Option C is incorrect because ownership is not transferred to a non-profit organization. Option D is incorrect because there is typically a trustee involved in the ownership of trust property.

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Ownership is transferred to a non-profit organization.

It is owned jointly by all beneficiaries without a trustee.

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