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KembaraXtra – Legal Terms – Naked Trust
A naked trust, more commonly called a bare trust, is a trust in which the trustee holds property solely for the benefit of the beneficiary without active duties or discretionary powers.
The beneficiary possesses the full beneficial interest in the trust property.
The trustee’s role is generally limited to holding and transferring the property according to the beneficiary’s instructions.
Once the beneficiary reaches full legal capacity, he may demand transfer of the trust property outright.
Bare trusts are commonly used in family arrangements, investments, and property management.
A naked trust, more commonly called a bare trust, is a trust in which the trustee holds property solely for the benefit of the beneficiary without active duties or discretionary powers.
The beneficiary possesses the full beneficial interest in the trust property.
The trustee’s role is generally limited to holding and transferring the property according to the beneficiary’s instructions.
Once the beneficiary reaches full legal capacity, he may demand transfer of the trust property outright.
Bare trusts are commonly used in family arrangements, investments, and property management.
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