What is a Bare Trust? Filing Requirements with CRA, Purpose, and Compliance

In the world of estate planning and asset management, bare trusts emerge as a powerful tool for safeguarding wealth and facilitating asset transfers. Unlike discretionary trusts, bare trusts grant beneficiaries absolute rights to both income and capital, making them a straightforward yet effective option. This article explores the essential aspects of bare trusts, including their filing requirements with the Canada Revenue Agency (CRA), their various purposes, and the compliance obligations that trustees must uphold. Discover how bare trusts can enhance your financial strategy and protect your assets while ensuring compliance with legal standards.