where independent decision-making powers and responsibilities relating to the management and administration of the trust are given to the trust. On the other hand, in cases where the powers and responsibilities to manage and/or dispose of the trust assets are reserved to the beneficial owner, the trust is a bare trust. The bare trustee does not have any independent power or discretion pertaining to the trust assets.
There are two main types of true personal trusts: inter vivos and testamentary. Inter vivos trusts are those that take effect during the lifetime of the settlor. Testamentary trusts are created by a will that only takes effect after the death of the settlor.