Which of the following defines a Trust?

A trust is fundamentally defined as a fiduciary arrangement where one party, known as the trustee, holds and manages property or assets for the benefit of another party, known as the beneficiary. This definition captures the essence of a trust’s purpose: to safeguard and manage assets in a way that fulfills the beneficiaries' interests.

Option C highlights the discretionary aspect of the relationship between the trustee and the beneficiaries. The trustee has the authority to make decisions regarding the management and distribution of the trust assets, ensuring that they are used in accordance with the wishes of the trust creator or settlor and in the best interests of the beneficiaries.

In contrast, the other options, while related to the concepts of trust and fiduciary responsibilities, do not encapsulate the specific nature of a trust as effectively. A relationship where one party acts on behalf of another describes the basic fiduciary relationship but lacks the specific elements of property management and protection for beneficiaries. A legally binding agreement between parties focuses on contracts, which may or may not involve a trust structure. An arrangement to hold funds until conditions are met may describe some aspects of trusts, especially in conditional trusts, but does not encompass the broader protective and discretionary role that trusts serve. Thus, option C accurately encapsulates the primary definition of