Bare trusts explained: control, tax and when they are used
By Financial Hub Editorial · Published 10 July 2026 · Last reviewed 6 June 2026
The short answer
A bare trust is the simplest type of trust. A trustee holds assets for a single named beneficiary, who is absolutely entitled to both the capital and any income. For tax, the assets are treated as the beneficiary’s — useful for children, who often have unused allowances. The key catch: the beneficiary gains the legal right to take everything outright at age 18 (16 in Scotland), so the person who set it up cannot change their mind or keep control after that point.
The simplest trust there is
In a bare trust, a trustee simply holds assets on behalf of one named beneficiary who is "absolutely entitled" to them. The trustee has no discretion — they hold and hand over, nothing more.
Why people use them
Saving or investing for a specific child or grandchild.
Passing a one-off gift while keeping it invested until the child is older.
Using a child’s own tax allowances, which are often unused.
The catch every parent should know
Because the beneficiary is absolutely entitled, they can take the lot at 18 (16 in Scotland) and do whatever they like with it. If that worries you, a discretionary trust gives more control — at the cost of more complexity and a different tax treatment.
A tax trap to watch
If a parent gifts assets to a bare trust for their own minor child and the income tops £100 a year, that income is taxed on the parent, not the child. Grandparents are not caught by this rule.
Key figures
Trust type
Bare (absolute)Simplest form of trust
Beneficiary access age
18 (England & Wales)16 in Scotland
Who is taxed
The beneficiaryOften a child with unused allowances
Can the settlor change their mind?
NoThe gift is irrevocable once made
Frequently asked questions
Who pays the tax on a bare trust?
Generally the beneficiary, because they are absolutely entitled to the assets. A child can use their own personal allowance and savings/dividend allowances — but anti-avoidance rules can tax a parent on income from gifts they made to their own child above £100 a year.
When can the child access the money?
At 18 in England and Wales (16 in Scotland) the beneficiary can demand the assets outright. There is no way to delay this in a bare trust — if you need more control, a different trust may suit better.
Is a bare trust the same as a Junior ISA?
No, though both are used to save for children. A Junior ISA is a specific tax-free account with annual limits; a bare trust is a general legal structure. They can be used together.
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Important — this is general information, not financial advice. This page covers an FCA-adjacent topic (e.g. pensions, trusts or tax planning) and is provided for education only. It does not account for your personal circumstances and is not a personal recommendation. SSAS, trust and tax decisions can have significant and hard-to-reverse consequences — before acting, get advice from an FCA-authorised adviser, a qualified tax adviser, or a STEP-qualified solicitor. Tax treatment depends on your individual circumstances and may change.