An absolute trust, is also know as a ‘bare’ or ‘simple’ trust.
It is effectively a trust in which each beneficiary has an immediate and abolute right to both capital and income, with the right to take actual possession of the trust property.
Put another way, it is the sole duty of the trustee to hold the property for the beneficiary and transfer it when required. Although the property is held in the name of the trustee, the trustee has no discretion over what income to the beneficiary.
So to summarise the trustee is a nominee in whose name the trust property is held and they have no active duties to perform.
An Example Of An Absolute Trust
Anthony leaves his sister Joanne some money in her Will. This is to be held in trust, with Joanne entitled to the money and any interest it earns. She has a right to take possession of any of the money at any time.
