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Bare Trust Agreement Template

A bare trust agreement is a legal document that sets out the terms of an arrangement between a trustee and a beneficiary. The purpose of a bare trust is to hold assets for the benefit of the beneficiary, who has a right to the income and capital of the trust. This type of trust is often used for estate planning or as a way of transferring assets to minors.

If you are considering setting up a bare trust, it is essential to have a written agreement in place. This agreement will outline the rights and responsibilities of both the trustee and the beneficiary, as well as the terms of the trust. To help you get started, we have put together a bare trust agreement template to guide you through the process.

Bare Trust Agreement Template

1. Parties

This section should state the names and addresses of the trustee and beneficiary.

2. Purpose of Trust

This section should describe the purpose of the trust, including the assets to be held and the rights of the beneficiary.

3. Powers of the Trustee

This section should outline the powers of the trustee, including the power to invest and manage the trust assets.

4. Rights of the Beneficiary

This section should describe the rights of the beneficiary, including the right to receive income and capital from the trust.

5. Termination of Trust

This section should set out the circumstances under which the trust can be terminated.

6. Dispute Resolution

This section should describe the process for resolving disputes between the trustee and beneficiary.

7. Governing Law

This section should state the governing law of the trust agreement.

8. Execution

This section should include signatures and dates for both the trustee and beneficiary.

In conclusion, a bare trust agreement is an essential document to have in place if you are planning to establish a bare trust. This agreement will set out the terms of the trust and ensure that both the trustee and beneficiary understand their rights and responsibilities. Use our bare trust agreement template to create a comprehensive and legally binding document that meets your needs.