Bare Trust

Posted in Finance, Accounting and Economics Terms, Total Reads: 366
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Definition: Bare Trust

Bare trust is a trust in which the trustee does not have any active duties or any rights on the capital but the beneficiary is the actual owner with rights and claim. The trustee is mainly namesake.

There can be multiple trustees and multiple beneficiaries but the rule remains the same, the beneficiaries would have right to the asset. 

Example

Mr X had a bare trust for his son Y. Mr X is the trustee on the bare trust but Mr Y has rights to income and can transfer the trust on his name too.




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