Bare Trust Law and Legal Definition
In a bare trust, the beneficiary has a right to both income and capital and may call for both to be remitted in his/her own name. Bare trust is also called naked trusts or simple trusts, limit the responsibilities of the trustee under the terms of the contract. In a bare trust, the trustee only has to transfer the assets to the beneficiaries and does not have to manage the assets or property in any other way. Beneficiaries can avoid probate and stiff taxes in a bare trust.
