Oregon 30-Hour Real Estate Law Practice Test

Who benefits from the assets managed in a land trust?

1. The financial advisor

2. The beneficiaries designated in the trust

3. The government

4. The original owner only

The correct answer is: The beneficiaries designated in the trust

The beneficiaries designated in the trust are the individuals or entities that benefit from the assets managed in a land trust. A land trust is a legal arrangement where one party holds title to a property for the benefit of another. This means that the designated beneficiaries have the rights to the use, income, and other benefits derived from the property held in the trust. In a land trust, the original owner may still have control and rights over the property, but it is the beneficiaries who will receive the financial and other benefits from the trust assets. The assets are managed by the trustee on behalf of these beneficiaries, who hold an equitable interest in the property. This setup allows for privacy and ease of transfer of interests without the public disclosures typically required in a regular property transaction. The other options, such as the financial advisor, the government, and the original owner, do not directly benefit from the managed assets in the same way the beneficiaries do. The financial advisor may assist in managing the trust but does not have a claim to the benefits of the assets. The government may impose taxes but is not a beneficiary of the trust. The original owner may retain some level of benefit but ultimately, it is the designated beneficiaries who are intended to receive the primary benefits from the assets in