Bare trusts clarified

Malcolm Finney explores the bare trust and its tax consequences. 
 
It is often thought that a bare trust can only have a single beneficiary; this is incorrect. One or more trustees may hold property as bare trustees for one or more beneficiaries.  
 
The essence of a bare trust with a single beneficiary is that the beneficiary is absolutely entitled to the equitable interest in the trust fund (property) held by the trustee. Once such beneficiary attains majority (i.e., age 18 in England and Wales), is mentally capable and is not an undischarged bankrupt, they have the right to call for the property held by the trustee(s) to be transferred to them (i.e., they can require the transfer of the legal interest or title in the trust property). 
 
In practice, it is often unclear precisely what powers a bare trustee possesses, and it is therefore advisable (although not often done) that any relevant