This precedent is a basic bare trust deed to be entered into by a trustee and a beneficiary.
A bare trust is a type of trust in which the beneficiary has an absolute right to both income and capital and may call for both to be remitted into his or her own name. Any income received must be distributed within the tax period it is earned. The trustee of a bare trust has no active duties to perform.
Considerations on stamp duty
Stamp duty rates may result from the execution of nominee / bare trust deeds in certain circumstances. General comments regarding stamp duty are set out below; however, certain share transactions (especially ASX listed shares) in many jurisdictions do not attract stamp duty.
A nominee / bare trust deed may attract stamp duty rates and inquiries should be made in this regard prior to execution of the deed (for New South Wales, see section 55 of the Duties Act 1997 (NSW) (Duties Act) and Revenue Ruling DUT 30).
In some states, the use of the word "vested" in the statutory provisions governing the stamp duty concessions for nominee trust deeds would indicate that the deed should not be executed until after completion of the agreement for sale or even until after registration at the Land Titles Office.