lilypadfrog
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Simple English definitions for legal terms
bare trustee
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A quick definition of bare trustee:
A bare trustee is someone who holds property for someone else and only has the duty to give it to the beneficiary. They don't have to do anything else with the property. There are other types of trustees, like corporate trustees who are companies that can act as trustees, and testamentary trustees who are appointed by a will. In bankruptcy cases, a trustee is appointed to manage the debtor's assets and finances. Trustees can also be appointed to audit an organization's finances.A more thorough explanation:
Definition: A bare trustee is a trustee of a passive trust who has no duty other than to transfer the property to the beneficiary.
Example: John creates a trust for his daughter, Jane, and appoints his friend, Tom, as the bare trustee. Tom's only responsibility is to transfer the trust property to Jane when she reaches a certain age.
This example illustrates that a bare trustee has no active role in managing the trust property and only acts as a custodian until the property is transferred to the beneficiary.