A bare trust agreement, also known as a nominee agreement, is a legal arrangement where the legal title of assets is transferred to a trustee but the beneficiary, who holds the real ownership of the assets, remains unchanged.

In simple terms, a bare trust agreement is a trust where the trustee has no discretion over the trust property. Instead, they have a legal obligation to follow the instructions of the beneficiary.

As the name suggests, this type of trust is `bare` because there are no discretionary powers given to the trustee. The trustee holds the assets in a fiduciary capacity and cannot act independently of the beneficiary.

An example of a bare trust agreement is when a parent purchases property for their child but would like to have it held in trust until the child is of age. The parent would transfer legal ownership of the property to a trustee, who would hold the property in trust for the child.

In this scenario, the trustee has no discretion over the property and must follow the instructions of the child (or the child`s legal guardian) once they become of age.

Bare trusts are often used for simple, straightforward arrangements where the beneficiary does not need or want the additional protection of a discretionary trust. They are commonly used in estate planning, where the beneficiary has certain assets they would like to pass on to their heirs.

In conclusion, a bare trust agreement is a legal arrangement where the trustee holds assets on behalf of the beneficiary, but has no discretion over the trust property. It is a simple and straightforward way to hold assets in trust, and is often used in estate planning.