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1. Dear *****, the difference between a bare trust, such as awhere a solicitor holds monies for a client and a trust for sale or a trust of land, such as a family settlement is that a bare trust has no positive duties of management and allocation of funds which a trust for sale or a trust of land has. Essentially, they are two very different species of animal.
2. A bare trust simply has an obligation to pay over the monies to the beneficiary of the bare trust. There are no duties of management or allocation of monies amongst beneficiaries. The lack of positive duties means that a bare trust is created whenever and whereever the law wants the fewest duties possible created.
3. A trust for sale or a trust of land, has positive duties of management and control of the rights of the potential beneficiaries amongst those beneficiaries. The trustees must, for example, invest any monies received. They must account to their beneficiary for what happens with the land or whatever is held on trust. Positive duties are owed to the beneficiaries which the beneficiaries may sue upon and enforce.
4. If you have a particular example you wish advice upon, I will be happy to help further. However, please Rate the answer as unless you Rate the answer your Expert will receive no payment for answering your question.
5. Dear *****, it is not correct that you insert "trustee" for solicitor in the reply No.1. I am giving you an example of a bare trust. The solicitor holds the monies as trustee. However, it is an example of a bare trust.
6. The trust is now a bare trust because the trustees merely have on obligation, namely to deliver up to you the assets which were the subject of the trust. Effectively, the trust objects have been performed so there is only a bare trust today. Secondly, all land is held in England & Wales on a trust for sale. This was the effect of the 1925 Land Law and Law of Trustees reforms. So, stating that your land is now held on a trust for sale is merely saying it is held in the usual way all land is held in the UK, namely on a trust for sale.
7. The first line should read the "trustees merely have one obligation.."
8. The overall arrangement was an express trust of which the life tenancy was only part of the express trust. The rest of the express trust was a conveyance to you absolutely.
9. Take your time.
10. No problem
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