Oregon 30-Hour Real Estate Law Practice Test

What statement is true regarding assets in a trust?

1. Only cash can be held in a trust

2. Any asset may be held in a trust

3. Only real estate can be held in a trust

4. Only personal property can be held in a trust

The correct answer is: Any asset may be held in a trust

The statement that any asset may be held in a trust is accurate. Trusts are versatile legal arrangements that allow individuals to place a wide variety of assets into the trust for the benefit of designated beneficiaries. These assets can include cash, real estate, stocks, bonds, personal property, intellectual property, and more. This flexibility in asset types is a key feature of trusts, enabling individuals to manage and distribute their assets according to specific wishes and intentions. The other options are limited in scope. Stating that only cash can be held in a trust or that only real estate or personal property can be held significantly overlooks the broad range of asset categories that trusts can encompass. This versatility serves various financial and estate planning purposes, such as maintaining privacy, avoiding probate, or ensuring controlled asset distribution to heirs.