Bare Trust
A bare trust is a structure where legal title is held by a trustee but the beneficiary retains full control and benefits of the property.
September 30, 2025
What is a Bare Trust?
A bare trust is a trust arrangement in which the trustee holds legal title to property on behalf of a beneficiary, who retains all rights to income, control, and decision-making. The trustee has no independent power beyond following the beneficiary’s instructions.
Why Bare Trusts Matter in Real Estate
Bare trusts matter in real estate because they allow property to be held for tax planning, estate planning, or privacy purposes. They can also simplify transactions where ownership is separated from beneficial interest.
Example of a Bare Trust in Action
An investor places a property into a bare trust with a trustee holding legal title. The investor remains the beneficial owner, directing all decisions and receiving all income.
Key Takeaways
- Trustee holds legal title on behalf of beneficiary.
- Beneficiary retains control and income rights.
- Used for tax planning, privacy, and estate purposes.
- Common in investment and succession planning.
- Trustee acts only under beneficiary’s instructions.
Related Terms
- Trust
- Beneficial Ownership
- Estate Planning
- Property Transfer
- Legal Title
National average resale-price growth and housing-starts growth, smoothed over three months. The comparison illustrates the cycle; it does not establish how much a price change causes construction to change.
Trailing 12-month starts in centres of 50,000 or more remove the usual monthly seasonality. Ownership combines the homeowner and condominium categories; rental is shown separately.
Six-month averages of provincial starts, expressed at annual rates. The smoothing reduces the influence of individual apartment projects.
The same August benchmark compared with two different starting points. Three-month changes are not annualized.
Average sale prices show the difference in purchase costs across markets. They do not measure affordability relative to local incomes or construction costs.
Newfoundland and Labrador remains above its pre-pandemic sales pattern, but August activity was below last year. Historical lines retain their original release vintages.
Average and median describe different aspects of the same month’s transactions. Both are affected by the mix of homes sold.
Category averages compare different homes and locations; the gaps are not estimates of the cost to upgrade an otherwise identical property.
The five categories shown account for 5,000 of the board’s 5,057 sales. The remaining 57 transactions were in other housing categories.
Monthly observations are not seasonally adjusted. Active listings count properties available at month-end; they are not construction inventory.
Average and median prices share one dollar axis. These unadjusted transaction measures do not control for changes in the homes sold.
TRREB’s 416/905 categories compare the apartments sold in each area. The difference does not isolate a location premium for equivalent units.
5680 Oak Street in Vancouver and its surrounding context. (MCMP Architects)
Ground-level renderings of the tower proposed for 5680 Oak Street in Vancouver. (MCMP Architects)
