Plain meaning
An arrangement where a trustee holds legal title to property while another person is generally treated as the beneficial owner.
Also called
bare trust arrangement
bare trustee
Key points
- Bare-trust treatment depends on the legal rights and obligations in the arrangement.
- Bare trusts can arise in family, real estate, nominee, and business-title arrangements.
- Trust reporting rules have changed in recent years and can affect bare-trust filing obligations.
- The tax result can depend on beneficial ownership, documentation, and provincial property-law context.
Why it comes up
Bare trusts appear in trust-reporting changes, real estate ownership structures, and CRA administrative announcements.