Bare trusts: main principles and effects: allowable expenditure
In the case of a bare trust, when an asset is disposed of, care needs to be taken in determining the amount of the allowable expenditure. It may include whichever of the following is appropriate.
- The value on the death of the previous owner.
- The value on the date on which the beneficiary became absolutely entitled to the asset.
- The actual cost to the trustees, or
- the actual cost to the beneficiary of the asset where it has been transferred subsequently to bare trustees.