Document background
The Deed of Bare Trust is a specialized legal instrument utilized in Canadian jurisdictions when there's a need to separate legal and beneficial ownership of property while maintaining the beneficiary's complete control over the assets. This document is particularly valuable in real estate transactions, corporate structuring, and asset protection strategies. It establishes a trust relationship where the trustee holds legal title but must act solely on the beneficiary's instructions, without any independent discretion. The deed must comply with provincial trust legislation and federal tax laws, including proper execution requirements and registration where necessary. Common applications include holding property for foreign investors, facilitating property development projects, and implementing tax-efficient business structures. The Deed of Bare Trust must be carefully drafted to ensure it creates a genuine bare trust relationship and doesn't inadvertently establish a more complex trust arrangement.
