Bare Trust

Question

Thanks Julia for your answer to the question about buying shares in children’s names.
I have another question. In your answer you mentioned a Bare Trust. My question is how do set up a Bare Trust orDeclaration of Trust and what are the pros and cons. I understand that if capital is added then a new trust is created and stamp duty is applicable in each instance. Please advise

Cec

I notice the categories do not match the question or subject that I am raising the question about. Does it matter that the category is not relevant?

Answer

Cec,

You are right your question does not match the catagory but there is no catagory for your type of question. It is our intention to limit the topics we cover by setting these catagories. Certainly issues involving trust law should be answered by a solicitor. I was happy to cover the topic of bare trusts in relation to the tax that applies to income of minors, in your previous question, but this question should be answered by a solicitor. I see a bare trust very differently to any other trust arrangement because it is simply holding something in trust for a particular person, so applying the laws applicable to other trusts is probably not appropriate. Nevertheless, you should consult a solcitor on this matter. I will arrange for you payment for this question to be refunded. As it is the first time I have arranged a refund please let me know if it does not work.