A bare trust is usually evidenced by a trust deed which will set out the parties involved (i.e. the person setting the trust up, the trustees and the beneficiary) and what assets are being transferred into it. The trust deed is signed by the person setting the trust up and the trustees, but not by the beneficiary.

They are also useful from a taxation perspective. Your initial gift into a Bare Trust arrangement is a potentially exempt transfer (unless covered by an exemption) and providing you survive seven years there is no charge to inheritance tax1.

Bare trusts This means the assets set aside by the settlor will always go directly to the intended beneficiary. Bare trusts are often used to pass assets to young people - the trustees look after them until the beneficiary is old enough. Example: You leave your sister some money in your will.

A bare trust is established using a deed of settlement or a declaration of trust. ... There are key differences between a bare trust and other types of trusts. Income generated from trust assets in the form of interest, dividends, and rent is taxed to the beneficiary because he or she is the legal owner of these assets.

A bare trust is established using a deed of settlement or a declaration of trust. In the simplest form of a bare trust, the assets bequeathed by the individual who set up the bare trust are owned by the trustee and beneficiary. But the trustee, in a bare trust, has no responsibilities or powers.

A bare trust (sometimes known as a 'simple trust') is one where the beneficiary, the person who benefits from the trust, has an immediate and absolute right to both the trust capital and the income received by the trust from that capital. ... Bare trusts are commonly used to transfer assets to minors.

A bare trust arises where the trustee simply holds property of and on behalf of the beneficiary. The trustee has no discretion and no active duties other than to transfer the property to the beneficiary when required. ... Moreover, the GST Act does not set out any special rules relating to certain trusts, but not others.

Note, recent tax case law has confirmed that a bare trust does not need to be created by written agreement. As stated above, the assets of the bare trust are held by the bare trustee on behalf of the beneficiary who is absolutely entitled to the income and capital of the assets.