Quote Originally Posted by fungus pudding View Post
The current ownership of an asett does not benefit a beneficiary until the title or ownership passes; which may never happen for various reasons, like predeceasing the settlor, or discovering previously unknown debt, or some similar claim. Try mortgaging a property you don't own but are a beneficiary to and the bank will soon show you the door. Until the estate is settled the trust may not be worth any more than an undrawn lotto ticket.
Sure the beneficiary may or may not get eventually the legal title to the property when the trust assets are finally distributed. However it does not affect their current position of having a beneficial interest in the property. The property’s legal ownership is held on behalf of the beneficiaries.