What is the difference between a trust deed and a deed of trust?
A trust deed and a deed of trust are two similar, but different, legal instruments in Arkansas inheritance law. A trust deed is a document that describes how legal title to real property is held by a trustee for the benefit of one or more beneficiaries. With a trust deed, the trustee (or someone else specified in the deed) has the legal right to manage the property and the accompanying obligations, such as collecting rent, taxes, and other payments. A deed of trust, on the other hand, is a document that allows a borrower to transfer legal title to real property to a lender as collateral for a loan. With a deed of trust, the borrower is still legally responsible for making payments on the loan, and if the loan defaults, the lender can take possession of the property. However, the lender does not have control over the property while the loan is in good standing. In summary, a trust deed is often used to transfer ownership of real property to a trustee for the benefit of the beneficiaries, while a deed of trust is used to transfer title of real property to a lender as security for a loan.
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