bare trustee

Bare trustees are not obliged to complete trust returns.

The administration of the estate was completed and the executors now held the shares as bare trustees for two beneficiaries.

A bare trustee is someone who holds assets for the benefit of a third party purely on personal trust, no legal agreement or documentation existing.

This may have been the feoffees carrying out the secret wishes of the king, expressed to them verbally as his bare trustees.

The person to whom the interest is paid, for example a person holding a power of attorney or third party mandate, or a bare trustee.

The beneficiary gets credit for UK Income Tax that the bare trustee has paid.

Bare trustees are not chargeable on any capital gains they make and do not make a return of those gains to HMRC.

Instead of being a bare trustee his position is analogous to that of a trustee of a settlement of which he is one of the beneficiaries.

The case is a proposition that an oral declaration to a bare trustee to transfer the trust property to a third party absolutely for his own benefit is a valid disposition.

That is to say the King must have had absolute confidence in him that he would not misappropriate the funds, for as a bare trustee no written agreement would have existed.

It is clear that Denys re-invested these funds in real-estate as a bare trustee for the King, using a group of feoffees many of whom were close to the King.

Thus, if a trustee of a family trust or a nominee or bare trustee or even an agent receives rent there can be a liability to income tax on him (normally just at the basic rate but sometimes at the additional rate).

Towards the end of his life, and of the King's, when the Privy Chamber financial system was in operation, Hugh Denys purchased interests in several manors, in some possibly as a bare trustee for another beneficial owner.

Trustees in 1 above are generally treated as a wholly separate entity for tax purposes; in the case of a bare trustee, nomineeship and agency, the acts of those persons will generally be treated as the acts of the beneficial owners or principals.

'Where a deposit is held for any person or for two or more persons jointly by a bare trustee, that person or, as the case may be, those persons jointly shall be treated as entitled to the deposit without the intervention of any trust.