Describe termination by merger of legal and equitable title in a trust.

• A. Termination occurs when a single person holds both legal and equitable title and may lead to closing the trust.
• B. Termination occurs automatically after a fixed term.
• C. Termination by merger is impossible.
• D. Termination by merger occurs only in charitable trusts.

Answer: (A)

In a trust, the legal title to the property is held by the trustee, while the beneficiaries hold the equitable (beneficial) title. Termination by merger occurs when a single person comes to hold both kinds of title. When that happens, there’s no longer a separate fiduciary relationship to manage or enforce for others, so the trust ends and the property can pass to that person as full, outright ownership. This is why a merger of legal and equitable title is the classic route to terminating the trust.

The other statements don’t fit because a fixed-term ending describes a time-based stop to a trust, not the merger mechanism; merger is a recognized way trusts terminate and isn’t restricted to charitable trusts; and it isn’t an impossibility—merger is a valid and common concept in trust law.