What type of title arrangement allows a trustee to hold legal title for the benefit of another?

The type of title arrangement that allows a trustee to hold legal title for the benefit of another is legal and equitable title. In this arrangement, the trustee possesses the legal title, meaning they have the legal rights and responsibilities associated with the property, while the beneficiary holds the equitable title, which grants them the right to benefit from the property.

This structure is often utilized in trusts, where the trustee administers the property according to the terms outlined in the trust agreement for the benefit of the beneficiaries. The legal and equitable title distinction ensures that the trustee follows the intentions of the person who created the trust, protecting the interests of the beneficiaries while maintaining the actual control and legal rights to the property.

In contrast, fee simple title denotes complete ownership of the property without any conditions or limitations but does not involve a trustee-beneficiary dynamic. Joint tenancy involves co-ownership among two or more individuals with rights of survivorship. Leasehold title refers to an interest in property for a specified period under a lease agreement, lacking the arrangement between a trustee and a beneficiary.