Bare Trust Agreement
PROTECTION FOR YOUR REAL ESTATE ASSETS
A bare trust agreement allows a company or individual to hold assets on someone else’s behalf - separating legal and beneficial ownership. It’s typically used for real estates, such as when an individual or a nominee holding company (aka the ‘bare trustee’) owns a property and wishes that the receipt of income and responsibility for expenses (and tax) are borne by the beneficiary. Frequently one entity will serve as the “nominee corporation” that is on the title for the property while transferring the beneficial interest in the property to another corporation or individual.
The Benefits of Bare Trust Agreements
A bare trust agreement explains in detail how your assets can be held by another party for management (or other terms stated in the agreement). By establishing a bare trust agreement, you can benefit from certain tax savings and shield yourself from liability while protecting your assets from creditors or lawsuits.
FAQ
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Without a bare trust, you may pay more taxes than necessary on your real estate holdings.
Where can I learn more about Bare Trust Agreements?
Watch this video.
Want to Set Up a Bare Trust Agreement?
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When it’s time to create a bare trust for your real estate assets, Parr Business Law can help. Our lawyers have the specialized knowledge to provide you with reliable and candid legal advice so you can protect your interests and avoid conflict down the road. Schedule a free consultation call with us today to learn more.