Bare trusts: A halfway house for tax planning

Jeremy Passmore illustrates the benefits of a trust where ownership for tax lies with the beneficiary

clock • 5 min read

Jeremy Passmore, head of wills, trust and tax planning at Thomson Snell & Passmore, illustrates the benefits of a trust where ownership for tax lies with the beneficiary

Bare trusts can be seen as the poor relation in the world of trusts: simple, unambitious and limited in their scope. However, they are a surprisingly useful tool in tax and financial planning, and it pays to be aware of their uses. A bare trust is, in a sense, a halfway house between a full trust and outright ownership. The legal control rests with the trustees and they have the usual trustee responsibilities but ownership for tax and many other purposes is with the beneficiary. A bare trust can arise in different ways: • It may come about unknowingly where, say, a parent simply h...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Tax Planning

HMRC continues to see raft of pension tax overpayment claims

HMRC continues to see raft of pension tax overpayment claims

Claim numbers hit 12,767 in second quarter

Isabel Baxter
clock 30 July 2025 • 2 min read
Economists pen open letter calling for a UK wealth tax

Economists pen open letter calling for a UK wealth tax

‘A progressive wealth tax is a critical step forward’

Isabel Baxter
clock 29 July 2025 • 3 min read
TISA and industry urge government to rethink IHT on pensions

TISA and industry urge government to rethink IHT on pensions

Research proposes simpler alternatives

Isabel Baxter
clock 14 July 2025 • 5 min read