scrumpyjack wrote:I have looked at requirements and, whilst it is clearly set out that the beneficiary becomes 'absolutely entitled' to the bare trust assets at age 18, I can't see anywhere a specific requirement to tell them about the assets
The trustees have a duty of care to the beneficiary (where the beneficiary is fixed) - this includes reasonable disclosure.
Here is a discussion on some of the legal issues...
https://www.thegazette.co.uk/all-notices/content/103984and a less good source
https://www.moneymarketing.co.uk/analys ... ficiaries/Also, the trust ends when the beneficiary reaches 18. Although the trustees can continue to hold legal title, they can only act on the instruction of the beneficiary i.e. it's like a nominee account. The trustees have an obligation to seek the instruction of the beneficiary as to administering the trust funds. If they don't, they leave themselves open to claims they have not acted in the beneficiaries best interest - as they have not sought to ask what that interest is (and yes that might be spending it all on a skiing holiday or worse!)
scrumpyjack wrote: I can't see anything to stop one setting up as many 'bare trusts' as you like for the same child. There is no requirement, AFAIAA, for a 'Trust Deed'. The act of giving assets to a minor creates an express bare trust. You can give further assets without creating a second registration or amending the first one.
Indeed you can settle as many trusts as you want. And you don't need a written document - in which case the statutory terms of trusts are applied. The act of "giving" only creates an "express trust" if the "three certainties" are met - there is clear intention to create a trust, the property of the trust is clear and the beneficiary is well defined (for a bare trust). So opening a bare trust account with HL or AJB will meet these requirements.
As I said before, there is nobody who is going to police this - certainly not HMRC. So again it is a question of trust between the settlor and the beneficiary and the trustees.
Personally if my father asked me to be a trustee of a bare trust for my son but asked me not to tell my son that it existed and perhaps even purposely hide it, I would decline. Not because there was any real legal risk but just because I would not want to be not wholly truthful with my son.
Of course different families work in different ways