BARE TRUSTS
14/04/2011
If a settlor or testator vests property in trustees to be held on trust for a nominated beneficiary absolutely the trust is a simple bare trust. As there are no conditions attached to the gift the trustees can only hold it to the order of the beneficiary until the beneficiary is competent to give the trustees a valid receipt for capital monies.
It is therefore likely that a bare trust will be expressly granted in respect of gifts to children and chosen for tax purposes in relation to personal injury trusts and arise by operation of law in trusts where the life tenant has died and the trust fund now vests absolutely in the remainder beneficiaries but this has not yet been done.
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