Question

Khatija intends to transfer some investments to be held in trust for the benefit of her minor children, Ali and Oren. The trust will be known as the Khatija Family Trust. She intends to appoint her brother Aaron as trustee. Who will hold the legal title to the investments?

Answer 1

Aaron, the trustee, will hold the legal title of the Khatija Family Trust's investments intended for her children, with a fiduciary responsibility to manage them in the beneficiaries' best interests.

Step-by-step explanation:

When Khatija places investment assets into a trust for her children, Ali and Oren, by naming the Khatija Family Trust, the legal title to these investments will be held by Aaron, her brother, whom she intends to appoint as the trustee. As a trustee, Aaron will have the legal authority to manage the trust's assets on behalf of the beneficiaries, Ali and Oren, who will be the equitable owners. The trustee's role involves fiduciary responsibilities, requiring Aaron to act in the best interests of the beneficiaries according to the trust's terms.