Bare Trust

Question 1

What is bare trust?

Answer 1

A trust for a sole, adult, mentally capable person thatgives the beneficial a vested interest is called “bare trust”:
Beneficiary “absolutely entitled”.
Trustee must handle trust as dictates by beneficiary.
Beneficiary may bring trust to an end at any time
e.g. stockbroker holds porfolio of shares on bare trust for client

Question 2

What are rules to end trust in Saundiers v Vautier?

Answer 2

Beneficiaries can end the trust provided that the beneficiaries:
1. Are in existence and ascertained
2.aged 18 and over, mentally capable
3. All agreed with ending the trust
4. Beneficiaries must have vested interest (contingent interest cannot collapse the trust)