TSEM1035 - Introduction to trusts: whether a bare or simple trust: Example 3 - a bare trust

The trustees of a pension scheme decide under their discretionary powers to grant the sum of £20,000 to the child of a deceased member of the pension scheme. Because the child is only 9 years old they decide to appoint trustees to administer the fund and protect the child’s interests until she attains age 18 years. The terms of the appointment from the pension scheme were in favour of the child absolutely. This is a bare trust. The income ought to be returned as the child’s own income and not that of the trustees.