Examlex
Which of the following statements is TRUE?
Trust
(1) A business arrangement in which stock owners appoint beneficiaries and place their securities with a trustee, who manages the company and pays a share of the earnings to the stockholders. (2) An estate-planning arrangement whereby a person transfers property to another person and the property is used for the benefit of a third person.
Transfer Property
The act of legally changing ownership of property or assets from one party to another.
Allocation
The process of distributing resources or assigning tasks among people or projects based on a plan or a set of criteria.
Potential Beneficiary
An individual or entity that stands to receive a benefit or rights under a will, trust, or insurance policy, pending upon certain conditions or events.
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