Bare Trustee - Definition - Law Dictionary Home Dictionary Definition bare-trustee

Definition :

Bare trustee, A person holding property in trust for another without any beneficial interest in or duty in regard to it except to transfer it to the person entitled. Under the (English) Law of Property Act, 1925, 1st Sched., Part II., para 3, the legal estate, if any, in a bare trustee (not being a trustee for sale) automatically vested in the person who could call for a conveyance of it. Although this simplified conveyancing where the legal estate in the trustee was only remote, it was found that great inconvenience would be caused in cases where the legal estate in the trustee related to the entirety of the property in question according to its nature, and the Law of Property Amendment Act, 1926, provided that a purchaser for money or money's worth without notice of the trust upon production of the title deeds may accept the conveyance from the trustee or persons deriving title under him. See ACTIVE TRUSTEE.Bare trustee, in relation to a deposit means person holding the deposit on trust for another person who has the exclusive right to direct how it shall be dealt with subject to satisfying any outstanding charge, lien or other right of the trustee to resort to it for the payment of duty, taxes, costs or other outgoings, Halsbury's Laws of England, Vol. 3(1), 4th Edn., Para 116, p. 99.