How to Use This Checklist
Click each checkbox to mark items as complete. Your progress is automatically saved to your browser. Use this checklist to verify every requirement before, during, and after creating your bare trust deed.
✅ Preparing Your Bare Trust Deed
1. Before starting: Decide on trust type, identify property, confirm trustee agreement
2. While completing: Verify all party details and property descriptions are accurate
3. Before signing: Ensure witnesses are independent adults (18+) and deed is properly executed
⚠️ What Is a Bare Trust?
📚 Simple Trust Structure: The trustee holds assets for the beneficiary who has absolute entitlement to both capital and income.
🎁 Beneficiary Control: At age 18, the beneficiary can demand transfer of all trust assets - the trustee must comply.
💰 Tax Treatment: Beneficiary is treated as owning the assets for tax purposes (income tax and CGT).
⚖ Trustee Act 2000: Trustees have statutory duties and powers under this Act unless modified by the deed.
📝 Common Uses: Holding assets for minor children, property purchases for adult children, tax-efficient gifts from grandparents.
🚫 Parental Settlement Tax Trap?If parent creates bare trust for their own minor child and trust income exceeds £100/year, ALL income is taxed on the parent at their marginal rate. Grandparents, aunts, uncles avoid this rule. Solution: Have grandparent create the trust instead of parent.
Parent Creates Trust for Own Child: If settlor is parent of minor beneficiary and trust generates more than £100/year income, the income is taxed on the parent, not the child. Grandparents Exempt: This rule doesn't apply to trusts created by grandparents, aunts, uncles, or unrelated settlors. Planning Tip: If you want to gift to your minor child, consider having a grandparent make the gift into trust instead.
🔵 Understanding Importance Levels
🔴 Critical: Should have — essential for valid bare trust
🟡 Important: Should have — protects against disputes
🔵 Recommended: Nice to have — best practice for clarity
Bare Trust Is Appropriate Structure?Bare trusts give absolute entitlement at 18. If you want control over when assets pass, consider discretionary trusts (trustees decide) or interest in possession trusts (income now, capital later). Bare trusts are simplest but offer least control.
Confirm a bare trust is the right structure for your needs. Bare trusts give the beneficiary absolute entitlement - they can demand the assets at age 18. If you want to control when and how assets are distributed, a discretionary trust or interest in possession trust may be more appropriate.
🔴 Critical
Tax Implications Understood?Key tax rules: Beneficiary pays income tax and CGT as if they own the assets. EXCEPTION: Parent creates trust for own minor child - if income exceeds £100/year, taxed on parent instead. Grandparents don't have this problem - common reason for grandparent trusts.
Understand that in a bare trust, the beneficiary is treated as owning the assets for tax purposes. Income tax and capital gains tax liability falls on the beneficiary. Special rules apply if a parent creates a trust for their minor child (income over £100/year taxed on parent).
🔴 Critical
All Parties Agree to Arrangement
Ensure the settlor understands they are giving up control of the assets, the trustee agrees to act and understands their duties, and (if over 18) the beneficiary is aware of the trust. For minor beneficiaries, parents/guardians should be informed.
🔴 Critical
Professional Advice Considered
Consider seeking legal and tax advice before creating the trust. Bare trusts have significant tax and legal implications. Professional advice is particularly important for high-value assets, property transfers, or complex family situations.
🟡 Important
Trust Name (Optional)
A descriptive name for the trust (e.g., "The Smith Family Trust" or "Emily Wilson Bare Trust 2025"). While not legally required, a name helps identify the trust in correspondence, tax returns, and asset registrations.
🔵 Recommended
Date of Trust Deed?The date matters for inheritance tax PET (potentially exempt transfer) calculations. If settlor dies within 7 years, some IHT may be due. The 7-year clock starts from the date on the deed. Make sure the date is accurate.
The date on which the deed is executed. This establishes when the trust comes into existence and is important for tax purposes (inheritance tax potentially exempt transfer starts from this date). Must be clearly stated in the deed.
🔴 Critical
Type of Trust Property Specified
Identify the category of property being placed in trust: real property (land/buildings), shares/securities, money/cash, or other assets. Different property types may require different transfer procedures and documentation.
🔴 Critical
Settlor Full Legal Name
The complete legal name of the person creating the trust (the settlor). This must match their identification documents exactly. The settlor is the person transferring assets into the trust.
🔴 Critical
Settlor Current Address
The settlor's full residential address. Required for identification purposes and may be relevant for tax and legal notices. Should be their current permanent address at the time of creating the trust.
🔴 Critical
Settlor Capacity Confirmed?Mental capacity test: Settlor must understand what a trust is, what assets they're transferring, who will benefit, and the effect of creating the trust. If capacity is doubtful due to age/illness, get a doctor's assessment dated same day as signing.
The settlor must have legal capacity to create the trust - they must be at least 18 years old, of sound mind, and acting freely without undue influence. The deed should confirm the settlor is transferring assets voluntarily.
🔴 Critical
Trustee Type Specified
Indicate whether the trustee is an individual or a company (corporate trustee). Individual trustees are common for family trusts; corporate trustees provide continuity and professional management but charge fees.
🔴 Critical
Trustee Full Legal Name?Settlor can also be trustee - very common when parents hold assets for children. Example: "John Smith" is both settlor and trustee, holding shares for his daughter Emily. This is simpler but the trust still works the same way.
The complete legal name of the trustee. For individuals, this is their full personal name. For companies, use the exact registered company name. The settlor can also be the trustee - this is common when parents hold assets for their children.
🔴 Critical
Trustee Address
For individual trustees: their residential address. For corporate trustees: the registered office address. This address is used for legal correspondence and service of documents.
🔴 Critical
Company Registration Details (if corporate trustee)
If using a corporate trustee, include the company registration number. This uniquely identifies the company at Companies House and confirms the trustee is a legitimate corporate entity.
🟡 Important
Trustee Agreement to Act
The trustee must consent to act as trustee. This is confirmed by their signature on the deed. Ensure the proposed trustee has agreed before preparing the deed - you cannot appoint an unwilling trustee.
🔴 Critical
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Beneficiary Full Legal Name
The complete legal name of the person who will benefit from the trust. In a bare trust, there is typically one beneficiary who has absolute entitlement to the trust property. Must match their identification documents.
🔴 Critical
Beneficiary Date of Birth?Critical date - on their 18th birthday, the beneficiary can demand all trust assets be transferred to them. The trustee MUST comply. No negotiation, no delay. Plan accordingly if you want assets held longer.
The beneficiary's date of birth. Critical for determining when the beneficiary can demand transfer of trust assets (at age 18). Also important for tax reporting and identification purposes.
🔴 Critical
Beneficiary Address
The beneficiary's current address. For minor beneficiaries, this is typically the parents'/guardians' address. Used for correspondence and legal notices. Keep updated if the beneficiary moves.
🔴 Critical
Relationship to Settlor?Tax trap: If parent creates trust for own child under 18 and income exceeds £100/year, the income is taxed on the parent, not the child. Grandparents, aunts, uncles avoid this rule. Common workaround: Grandparent creates trust instead of parent.
The beneficiary's relationship to the settlor (child, grandchild, spouse, other family, unrelated). Important for tax purposes - the parental settlement rules apply if the settlor is the beneficiary's parent and the beneficiary is under 18.
🟡 Important
Property Address
The full postal address of the property being placed in trust. Must be complete and accurate to identify the property unambiguously. Include postcode and any unit/flat numbers.
🔴 Critical
Land Registry Title Number?Find your title number: Search HM Land Registry online (£3 fee) or check your property deeds. Format is like "ABC123456". If property is unregistered (rare), you'll need to register it when creating the trust.
If the property is registered with HM Land Registry, include the title number. This uniquely identifies the property in Land Registry records. Required for registering the trust at Land Registry.
🔴 Critical
Property Description
A full legal description of the property being placed in trust. Typically includes "ALL THAT freehold/leasehold property known as [address] together with all buildings, fixtures and fittings thereon." Must clearly identify what is included.
🔴 Critical
Property Type (Freehold/Leasehold)
Specify whether the property is freehold or leasehold. For leasehold properties, additional considerations apply including ground rent obligations and lease length. Include lease details if applicable.
🟡 Important
Company Name
The full registered name of the company whose shares are being placed in trust. For listed companies, use the official name as it appears in share certificates or stockbroker statements.
🔴 Critical
Number of Shares
The exact number of shares being placed in trust. Must be specific and accurate. If placing all shares held in a company, state this explicitly to avoid ambiguity.
🔴 Critical
Share Class
The class or type of shares (e.g., ordinary shares, preference shares, A shares). Companies may have multiple share classes with different rights. Specify the exact class being placed in trust.
🟡 Important
Nominal Value
The nominal (par) value per share if applicable. For UK private companies, shares typically have a nominal value (e.g., £1.00). This is different from market value. Include for completeness.
🔵 Recommended
Cash Amount Specified
For money/cash trusts, state the exact amount being placed in trust. Write in both figures and words (e.g., "£50,000 (Fifty Thousand Pounds)"). Specify the currency if not GBP.
🔴 Critical
Source of Funds (if applicable)
Optionally record the source of funds (e.g., "Gift from savings", "Inheritance from grandmother's estate"). Not legally required but helpful for HMRC queries and anti-money laundering purposes.
🔵 Recommended
Other Assets Fully Described
For other assets (vehicles, art, jewellery, intellectual property, etc.), provide a full description sufficient to identify the asset uniquely. Include serial numbers, valuations, or distinguishing features where applicable.
🔴 Critical
⚡
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Transfer of Property Clause
A clear statement that the settlor transfers (or procures the transfer of) the trust property to the trustee. This is the fundamental act that creates the trust - the settlor must part with ownership of the assets.
🔴 Critical
Declaration of Bare Trust?Key wording: "The Trustee declares that they hold the Trust Property and any income arising from it absolutely for the Beneficiary." This single sentence establishes the bare trust relationship - beneficiary owns everything, trustee just holds legal title.
The trustee's declaration that they hold the trust property and income absolutely for the beneficiary. This establishes the bare trust relationship - the beneficiary has immediate vested interest in both capital and income.
🔴 Critical
Beneficiary's Absolute Entitlement
Statement confirming the beneficiary is absolutely entitled to both capital and income as against the trustee. This is the defining characteristic of a bare trust - the beneficiary can demand transfer of assets at any time after reaching age 18.
🔴 Critical
Right to Demand Transfer at 18?This is "Saunders v Vautier" principle (1841 case). Once beneficiary is adult with absolute entitlement, they can collapse the trust entirely. The trustee has NO discretion to refuse. If you don't want this, use a different trust type.
Statement that the beneficiary can require the trustee to transfer the trust property absolutely after attaining age 18. This is the "Saunders v Vautier" principle - an adult beneficiary with absolute entitlement can collapse the trust.
🔴 Critical
Rights While Under 18
Provisions for how the trust operates while the beneficiary is under 18. The trustee holds assets for the beneficiary's benefit, follows lawful directions of the beneficiary's parent/guardian, and accounts for all income.
🟡 Important
Right to Direct Trustee
The beneficiary's right to direct the trustee regarding trust property dealings. For adult beneficiaries, they can direct investment, sale, or transfer. For minors, their parent/guardian exercises this right on their behalf.
🟡 Important
Duty to Hold Legal Title
The trustee's primary duty is to hold the legal title to the trust property. In a bare trust, the trustee's role is purely administrative - they have no discretion over how assets are managed or distributed.
🔴 Critical
Duty to Transfer on Demand
The trustee must transfer the trust property to the beneficiary when lawfully required to do so (i.e., when the beneficiary is 18+ and makes the demand). The trustee cannot refuse or delay unreasonably.
🔴 Critical
Duty to Follow Directions
The trustee must follow the lawful directions of the beneficiary (or their guardian if under 18) regarding the trust property. The trustee cannot act independently - they are essentially a "holding" trustee only.
🟡 Important
Duty to Keep Records
The trustee must keep proper records of the trust property and any dealings with it. This includes accounts of income received, expenses paid, and any transactions. Records support tax reporting and beneficiary queries.
🟡 Important
Investment Powers?In bare trusts, investment is typically subject to beneficiary direction - the trustee can't invest however they want. If beneficiary (or guardian) says "keep it in cash", trustee must comply. Different from discretionary trusts where trustee decides.
Whether the trustee has power to invest trust funds. Options: standard investment powers (Trustee Act 2000), limited to beneficiary's directions only, or no investment powers. In bare trusts, investment is typically subject to beneficiary direction.
🟡 Important
Power to Delegate
Whether the trustee may appoint agents or advisers to assist with trust administration. Useful for professional investment management or legal/accounting services. Subject to Trustee Act 2000 delegation provisions.
🔵 Recommended
Power to Insure
Whether the trustee may insure trust property against loss or damage. Essential for real property trusts. The trustee should maintain appropriate buildings insurance and, where applicable, contents insurance.
🟡 Important
Power to Maintain Property
Whether the trustee may carry out necessary repairs and maintenance on trust property. For property trusts, this is essential to preserve the asset's value. Specify whether major works require beneficiary approval.
🔵 Recommended
Appointment of New Trustees
Provisions for appointing new or additional trustees. Specify who has the power to appoint - typically the settlor during their lifetime, then the beneficiary (if over 18) or their parent/guardian.
🟡 Important
Retirement of Trustees
Procedure for a trustee to retire from the trust. Typically requires written notice (e.g., 28 days) to the settlor and beneficiary, provided at least one trustee remains or a replacement is appointed.
🟡 Important
Trustee Remuneration?Family trustees usually unpaid - grandparent holding shares for grandchild doesn't charge. Professional trustees (solicitors, trust companies) charge fees - typically 0.5-1.5% of assets per year, or hourly rates. Specify clearly in the deed.
Whether the trustee is entitled to remuneration. Options: no remuneration (voluntary/family trustee), professional trustee fees apply, or custom arrangement. Most family bare trusts have unpaid trustees; professional trustees charge fees.
🟡 Important
Trustee Indemnity
Protection for the trustee from personal liability for expenses and liabilities properly incurred in administering the trust. Standard indemnity from trust assets is usual; extended provisions may be needed for commercial trusts.
🟡 Important
Governing Law Specified
The legal jurisdiction governing the trust: England and Wales, Scotland, or Northern Ireland. Different rules apply in each jurisdiction. Scottish trusts have different requirements under Scottish trust law.
🔴 Critical
Executed as a Deed?A deed requires: (1) Clear statement it's a deed ("signed as a deed"), (2) Signature in presence of witness, (3) Witness signs and provides details, (4) "Delivery" (handing over or clear intention to be bound). Deeds provide stronger legal protection than simple contracts.
For property trusts and most formal trusts, the document should be executed as a deed. This requires clear words indicating it is a deed ("signed as a deed"), proper witnessing, and delivery. Provides stronger legal foundation.
🔴 Critical
Settlor Signature
The settlor must sign the deed. The signature should be in the designated space, in permanent ink (black or blue). If the settlor cannot sign, provisions exist for signing by another person in their presence and at their direction.
🔴 Critical
Settlor's Witness Signature
The settlor's signature must be witnessed by an independent witness aged 18+. The witness must be present when the settlor signs, then sign and provide their name, address, and occupation.
🔴 Critical
Trustee Signature
The trustee must sign the deed, confirming their agreement to act as trustee. If the trustee is a company, the deed must be executed in accordance with the Companies Act 2006 (typically by a director or company secretary).
🔴 Critical
Trustee's Witness Signature
The trustee's signature must be witnessed by an independent witness aged 18+. Can be the same witness as for the settlor if they are present for both signatures. Full witness details required.
🔴 Critical
Safe Storage of Original Deed
Store the original signed deed safely - with a solicitor, in a safe deposit box, or secure home storage. Keep copies for the settlor, trustee, and beneficiary. The original may be needed for property registration or legal proceedings.
🟡 Important
⚡
Instant Download
You've Done the Research. Now Finish It.
Complete bare trust deed template — all clauses included, professionally drafted.
Fill in your details in minutes and you're done.
£45 — Own It Forever
Create Your Bare Trust Now
→
✅ 30-day money-back guarantee*
Preview before you buy • Lifetime updates • No subscription
Next Steps
Now that you've reviewed the compliance checklist, you have two options:
✅ Use Our Ready-Made Template
Create your bare trust deed with our professionally drafted template. Covers all 55 compliance points with settlor/trustee/beneficiary provisions, property schedules, trustee powers, and execution requirements. Available in both Smart Interview (guided) and Classic Editor (direct editing) modes for just £45. Preview the full template with watermark before you buy. Get the template →
📝 Create Your Own Bare Trust Deed
Use this checklist as your guide, but remember errors can create problems — e.g. unclear property descriptions may lead to disputes, missing trustee powers may require court applications, improper execution may not create valid deed. Professional advice recommended for high-value assets or complex situations.
🔗
Official Government Resources
Frequently Asked Questions
General information about bare trusts in England & Wales
Do I need a solicitor to create a bare trust deed?
Many create straightforward bare trusts without one. Our template is based on UK trust law and includes clear guidance for typical situations. Consider professional advice for high-value assets, property trusts, or complex tax situations.
What is the difference between a bare trust and other trust types?
In a bare trust, the beneficiary has absolute entitlement to the trust assets and can demand transfer at age 18. Discretionary trusts give trustees power to decide distributions. Interest in possession trusts give income to one beneficiary with capital to another. Bare trusts are simplest but offer least control.
What are the tax implications of a bare trust?
The beneficiary is treated as owning the trust assets for tax purposes. Income tax and capital gains tax liability falls on the beneficiary (or their parents if under 18 and parent is settlor with income over £100/year). Creating the trust may be a potentially exempt transfer for inheritance tax purposes.
Can the settlor also be the trustee?
Yes, this is very common. A parent can transfer assets to themselves as trustee, holding for their child as beneficiary. The trust is still valid - the settlor/trustee holds legal title while the beneficiary has beneficial ownership.
Does a bare trust need to be registered?
Most bare trusts need to be registered with HMRC's Trust Registration Service within 90 days of creation if they have UK tax obligations. Exceptions apply for some simple bare trusts. If the trust holds land, the trust interest should also be registered at HM Land Registry.
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Disclaimer: This checklist is for general informational purposes only and does not constitute legal advice. While we strive to keep information accurate and up to date, the law is complex and subject to change. Every situation is unique. Last updated: May 2026.
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