Naked Trust

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Naked Trust

A trust in which the grantor leaves assets to the care of a trustee, whose only duty is to transfer those assets to a stated beneficiary. This contrasts with most other trusts, in which the trustee invests or otherwise safeguards the assets and gives the income they generate to the beneficiary.
References in periodicals archive ?
The Government welcomes the release of the Board of Taxation's report Review of the Tax Treatment of Bare Trusts and Similar Arrangements, which follows the completion of a self-initiated review.
Explaining further, he said the case of Imran Khan involved a bare trust.
If you put assets into a bare trust for someone who is not your child, the income and capital gains are taxed as the beneficiary's income and gains.
A Under intestacy, what is set up is known as a bare trust for the benefit of your daughter.
QI waS reading your section recently in which you mentioned unit trust and bare trust saving plans for children.
If the grandparents put money into a bare trust for a child, the investment is taxed as if it is the child's, so there is unlikely to be income tax to pay.
It is often held in a bare trust for legal reasons designating the child's initial on the application form.
While it was set up under a will it could be a bare trust, for example for minors yet to come of age, or for the benefit of someone with a life interest or a form of discretionary trust.
These have the advantage of being taxfree and can be held in what is known as a bare trust for the benefit of the child when he or she reaches 18.
For example, a popular arrangement where investments are bought in the name of an adult but with a designation to a particular child is an Implied Bare Trust
Any income from a Bare Trust is taxable at a child's rate, and a child has a tax-free personal allowance of up to pounds 6,475 in the present tax year.