Bare trust
Encyclopedia
A bare trust is a trust
in which the beneficiary
has a right
to both income
and capital and may call for both to be remitted into his own name. He is also entitled to take actual ownership
and control of the trust property
. Although there are trustee
s, they are only effectively nominees and must act according to the beneficiary's instructions.
Trust law
In common law legal systems, a trust is a relationship whereby property is held by one party for the benefit of another...
in which the beneficiary
Beneficiary (trust)
In trust law, a beneficiary or cestui que use, a.k.a. cestui que trust, is the person or persons who are entitled to the benefit of any trust arrangement. A beneficiary will normally be a natural person, but it is perfectly possible to have a company as the beneficiary of a trust, and this often...
has a right
Right
Rights are legal, social, or ethical principles of freedom or entitlement; that is, rights are the fundamental normative rules about what is allowed of people or owed to people, according to some legal system, social convention, or ethical theory...
to both income
Income
Income is the consumption and savings opportunity gained by an entity within a specified time frame, which is generally expressed in monetary terms. However, for households and individuals, "income is the sum of all the wages, salaries, profits, interests payments, rents and other forms of earnings...
and capital and may call for both to be remitted into his own name. He is also entitled to take actual ownership
Ownership
Ownership is the state or fact of exclusive rights and control over property, which may be an object, land/real estate or intellectual property. Ownership involves multiple rights, collectively referred to as title, which may be separated and held by different parties. The concept of ownership has...
and control of the trust property
Property
Property is any physical or intangible entity that is owned by a person or jointly by a group of people or a legal entity like a corporation...
. Although there are trustee
Trustee
Trustee is a legal term which, in its broadest sense, can refer to any person who holds property, authority, or a position of trust or responsibility for the benefit of another...
s, they are only effectively nominees and must act according to the beneficiary's instructions.