Bare Trustee Declaration Clause (Simple) (ON)

Summary

This clause is a bare trustee declaration which declares that the named property owner holds the specified property in trust as bare trustee. This clause includes practical guidance and drafting notes. A bare trust is one in which the trustee (also called a bare trustee or nominee) holds property without any further duty but to convey the trust property to the beneficiary(ies) or as the beneficiary(ies) direct(s). The main attraction of the bare trust is to effect wealth transfer without attracting probate fees and related expenses. Bare trusts are common arrangements for holding title to real property. Bare trusts are not recognized as trusts for the purposes of the Income Tax Act, R.S.C. 1985 (5th Supp), c. 1 ("Income Tax Act"), and so, where property is held by a bare trustee, the beneficiary is deemed the owner of the property for tax purposes. However, after December 30, 2023, there are new reporting requirements that all trusts are required to file an annual T3 return with the ...