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Answer: A major characteristic of trusts is duality of ownership. Duality of ownership refers to the situation where legal ownership and beneficial ownership co-exist. For example, if Y is the name of a property purchased and invested by X, X has beneficial ownership and Y has legal ownership. In the case of a trust, the beneficiary has beneficial ownership and the trustee has legal ownership. As a result, the trust can be expected to be an extremely useful mechanism for tax purposes, inheritance purposes, and future or potential creditor avoidance measures due to the dual nature of ownership.