A bare trust is a very straight-forward trust structure in which the beneficiary has the absolute right to capital and assets that are held within the trust. The beneficiary also has absolute right to any income generated from those assets. These assets are held in the name of a trustee who has the responsibility of managing those assets held in the trust.

The beneficiaries are entitled to the assets and income from the bare trust as long as they are above the age 18. This simple form of trust is often used by parents and grandparents to transfer assets to their children or grandchildren. These structures are also used in Superannuation Limited Recourse Borrowing arrangements. Bare trusts are also used to hold assets for the real owner whilst legitimately concealing the true ownership of the property. There may be good reason why the true ownership of an asset should be concealed from the public domain.

We can assist you:

  • Identifying your requirements and specific circumstances that allow us to ensure the most appropriate trust structure is established;
  • Advise you on the nature, benefits and risks associated with establishing a bare trust structure;
  • Drafting the trust deed and accompanying documents in accordance with legal requirements;
  • Informing you of your duties and obligations prescribed by the drafted trust deed;
  • Obtaining the relevant consents that will be required, such as an appointer and the beneficiaries;
  • Consideration of all potential creditors and debtors in relation to the trust;
  • Consideration and compliance with all potential tax obligations associated with the trust.

Our expert trust lawyers provide practical and technical advice on how to establish a bare trust structure, and the administration of a bare trust.

Talk to one of our expert lawyers today.