Question

A minor is named the beneficiary of real property upon the passing of the property's owners, but with the stipulation that the property will be held by another party until certain conditions are met (i.e., the minor is no longer a minor). What is the correct term for this legal arrangement?

Answer 1

A trust is the legal arrangement where a minor is designated as beneficiary with assets held by a trustee until certain conditions, like reaching adulthood, are met.

Step-by-step explanation:

The legal arrangement described where a minor is named the beneficiary of real property with the stipulation that the property will be held by another party until certain conditions are met is known as a trust. In this scenario, the minor is the beneficiary, and the trust is managed by a trustee until the minors reaches adulthood or another specified condition is fulfilled. This is distinct from situations where a person dies intestate, meaning without a will or trust, in which case state intestacy laws determine the distribution of assets. A trust can also offer a level of privacy in estate planning that is not available through the public execution of a will. Trusts can be used to manage not only the distribution of assets but also to stipulate conditions for inheritance, such as reaching a certain age.