What type of assets are typically placed in a third-party self-settled trust?

A third-party self-settled trust is designed to hold a variety of assets for the benefit of an individual, often in a manner that protects those assets from creditors or certain legal claims. The term "self-settled" generally refers to a trust where the individual who creates the trust (the settlor) can also benefit from it.

The correct answer indicates that all types of assets can be placed in such a trust, provided they are in accordance with the terms set forth in the trust agreement. This can include real estate, cash, liquid assets, personal property, and other forms of value. The flexibility in asset inclusion allows for strategic planning in wealth management and protection.

The other choices suggest a limited scope of asset types that can be included in a third-party self-settled trust. For instance, stating that only real estate or only liquid assets can be placed in such a trust would restrict the trust’s capacity to meet the diverse needs of the beneficiary, thus not reflecting the comprehensive nature of what can be included according to trust laws and practices.