Document background
The Bare Trust and Agency Agreement is a crucial document in Canadian trust law, commonly utilized when there is a need to separate legal and beneficial ownership of assets while maintaining direct control by the beneficiary. This arrangement is particularly valuable for tax planning, property management, and certain commercial transactions. The document establishes a bare trust where the trustee holds legal title but has no independent powers or discretion, combined with an agency relationship that facilitates efficient administration. It's frequently used in real estate transactions, investment structures, and corporate reorganizations. The agreement must comply with both federal legislation (such as the Income Tax Act) and provincial trust laws, making it essential to tailor the document to the specific province of operation. Key elements include detailed provisions for asset management, clear delineation of trustee and agent duties, instruction mechanisms, and liability protections.
