What is a separate legal entity that holds property or assets for the benefit of a specific person or group?

A trust is a separate legal entity that is established specifically to hold property or assets for the benefit of designated individuals or groups, known as beneficiaries. In a trust arrangement, the person who creates the trust, referred to as the grantor or settlor, transfers ownership of certain assets to the trust. A trustee, appointed by the grantor, is responsible for managing those assets according to the terms outlined in the trust document, which dictates how and when the assets will be distributed to the beneficiaries.

This arrangement allows for greater control over the distribution of assets, often providing benefits such as tax efficiency, confidentiality, and the ability to dictate terms for asset management. Trusts can be utilized for various purposes, including estate planning, charitable giving, and asset protection.

The other options represent different legal structures with distinct purposes. A corporation is a legal entity designed for business purposes and provides liability protection to its owners but does not operate primarily to manage or hold assets for individuals. A partnership involves two or more individuals sharing ownership and profits of a business but does not primarily aim to hold assets for beneficiaries. An estate refers to the total assets owned by an individual at the time of their death, which may be distributed through a will or trust, but it does not itself