What is the arrangement under which the trustee holds legal title to property for the benefit of the beneficiaries?

The correct answer is the trust arrangement, where the trustee holds legal title to property specifically for the benefit of designated beneficiaries. In a trust, the trustee manages the assets according to the terms set forth in the trust document, ensuring that the beneficiaries receive the benefits derived from those assets as intended by the grantor.

A trust is a fiduciary relationship allowing the trustee to manage and administer the trust’s assets for the beneficiaries, who hold equitable title to those assets. This arrangement provides for various practical advantages, such as avoiding probate, providing clear directives for asset management, and facilitating the distribution of assets upon the grantor's death or under specific conditions.

In contrast, a will is a legal document that outlines how an individual's assets should be distributed upon their death but does not allow for the ongoing management of those assets like a trust does. An estate refers to all the assets owned by an individual at the time of their death, encompassing everything from properties to bank accounts, but does not denote a management structure like a trust. A power of attorney is a legal document that allows one person to act on behalf of another in legal or financial matters but does not involve the holding of assets for beneficiaries. Thus, the trust structure is uniquely suited for the arrangement described in