Upon creation of a trust with multiple trustees, who holds legal title to the trust property?

• A. The beneficiaries hold legal title.
• B. The trustee holds legal title, and co-trustees share title jointly with right of survivorship.
• C. The court holds title until a successor is appointed.
• D. The grantor retains legal title.

Answer: (B)

In a trust, legal title to the trust property sits with the trustees in their fiduciary capacity, while the beneficiaries hold the beneficial (equitable) ownership. When there are multiple trustees, they hold that legal title together as co-trustees. They manage and control the property for the benefit of the beneficiaries, and the trust continues despite changes in who serves as a trustee because the title remains held by the trustees as a group for the trust.

So, the trustees collectively hold the legal title to the trust property, not the beneficiaries or the grantor, and the trust instrument governs how successors are appointed and how the property is managed. The statement reflects that the co-trustees share the legal title as part of their duties as trustees.