Who holds the legal title of the property in a trust?

In a trust arrangement, the trustee holds the legal title to the property. This means that the trustee has the authority to manage the assets within the trust according to the terms established by the grantor, who is the individual that creates the trust. The trustee is responsible for administering the trust’s assets and fulfilling their fiduciary duty to the beneficiaries, who are those that benefit from the trust.

By holding legal title, the trustee has the responsibility to make decisions regarding the property, such as how it is invested or distributed, while ensuring that the benefits flow to the beneficiaries as intended by the grantor. This structure is designed to separate control of the trust property from the benefits of that property, thereby providing an added layer of security and management for the assets involved.