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Question: Bare Trust

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Asked on Mon 07, Jul 2008 10:48am for $39.95:
Thanks Julia for your answer to the question about buying shares in
children's names.
I have another question. In your answer you mentioned a Bare Trust. My
question is how do set up a Bare Trust orDeclaration of Trust and what are
the pros and cons. I understand that if capital is added then a new trust
is created and stamp duty is applicable in each instance. Please advise

Cec 

I notice the categories do not match the question or subject that I am
raising the question about. Does it matter that the category is not
relevant? 
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Answer:

Answer by julia on Mon 07, Jul 2008 01:06pm:
Cec,

     You are right your question does not match the catagory but there is
no catagory for your type of question.  It is our intention to limit the
topics we cover by setting these catagories.  Certainly issues involving
trust law should be answered by a solicitor.  I was happy to cover the
topic of bare trusts in relation to the tax that applies to income of
minors, in your previous question, but this question should be answered by
a solicitor.  I see a bare trust very differently to any other trust
arrangement because it is simply holding something in trust for a
particular person, so applying the laws applicable to other trusts is
probably not appropriate.  Nevertheless, you should consult a solcitor on
this matter.  I will arrange for you payment for this question to be
refunded.  As it is the first time I have arranged a refund please let me
know if it does not work.

 

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