A Massachusetts nominee trust is (a) in writing, (b) has one or more persons or corporations named as trustees, (c) has an identified corpus, (d) has beneficiaries identified on a written schedule held by the trustees but not disclosed to the public, and (e) contains various trustee powers as to corpus dispositions that can only be exercised when authorized by the beneficiaries.
The beneficiaries are the owners of the corpus for all purposes, including income, gift and estate taxation, except being the owners of record of the corpus. There is a Principal/Agent relationship between the Trustees and the Beneficiaries, and it is somewhat the reverse where usually in a Grantor Trust, the Trustee instructs the Beneficiaries on what he will/is allowed to do for them, but in a Nominee Trust the Beneficiaries direct the Trustee.
The nominee trust was conceived as an estate-planning vehicle to allow a decedent's real estate to pass to beneficiaries without the necessity of it being probated, e.g., the undisclosed beneficiaries would be also be the trustees of the Nominee trust (you can't have the same trustee be the only beneficiary, but the same two trustees can be the same two beneficiaries!)
The trustees have liability in tort but not in contract if the trust has appropriate language stating that those dealing with the trust may look only to trust property when a dispute arises with the trustee and giving the trustee ostensible authority to deal with the trustee.
The Orange California Agreement and Declaration of Real Estate Business Trust is a legal document that establishes a trust structure for managing and conducting real estate business in Orange County, California. This trust is specifically implemented by the Massachusetts Nominee Realty Trust, with the primary purpose of acting as a nominee for legal and administrative purposes related to owning and managing real estate properties. The Trustees of the Massachusetts Nominee Realty Trust are bound by the terms of this agreement and are required to act only as directed by the beneficiaries, who are the individuals or entities that have a beneficial interest in the trust. This ensures that the trustees do not have the authority to make independent decisions or act in their own discretion. Any actions or transactions related to the trust must be authorized and directed by the beneficiaries. Different types or variations of the Orange California Agreement and Declaration of Real Estate Business Trust may exist depending on the specific requirements or preferences of the beneficiaries. Some possible variants may include: 1. Limited Power of Trustee: This type of agreement may allow the beneficiaries to grant limited decision-making power to the trustees in certain areas or for specific purposes. It ensures that the trustees have the authority to act within specified boundaries while still requiring direction from the beneficiaries for major decisions. 2. Discretionary Trust: In this type of agreement, the beneficiaries may grant the trustees broader decision-making powers, allowing them to exercise discretion in managing and conducting the real estate business. The trustees would still have a duty to act in the best interests of the beneficiaries but would have more flexibility in day-to-day operations. 3. Revocable Trust: This agreement could also be structured as a revocable trust, allowing the beneficiaries to modify or terminate the trust and its provisions at any time. This type of trust provides flexibility for beneficiaries who may want to make changes to the trust structure in the future. 4. Irrevocable Trust: Conversely, an irrevocable trust would restrict the ability of the beneficiaries to modify or terminate the trust without the consent of all parties involved. This type of trust offers more certainty and stability in the management and conduct of the real estate business. It is important to consult with legal professionals when establishing or entering into the Orange California Agreement and Declaration of Real Estate Business Trust or its variants to ensure that all legal requirements are met and that the trust structure adequately reflects the intentions and desires of all parties involved.The Orange California Agreement and Declaration of Real Estate Business Trust is a legal document that establishes a trust structure for managing and conducting real estate business in Orange County, California. This trust is specifically implemented by the Massachusetts Nominee Realty Trust, with the primary purpose of acting as a nominee for legal and administrative purposes related to owning and managing real estate properties. The Trustees of the Massachusetts Nominee Realty Trust are bound by the terms of this agreement and are required to act only as directed by the beneficiaries, who are the individuals or entities that have a beneficial interest in the trust. This ensures that the trustees do not have the authority to make independent decisions or act in their own discretion. Any actions or transactions related to the trust must be authorized and directed by the beneficiaries. Different types or variations of the Orange California Agreement and Declaration of Real Estate Business Trust may exist depending on the specific requirements or preferences of the beneficiaries. Some possible variants may include: 1. Limited Power of Trustee: This type of agreement may allow the beneficiaries to grant limited decision-making power to the trustees in certain areas or for specific purposes. It ensures that the trustees have the authority to act within specified boundaries while still requiring direction from the beneficiaries for major decisions. 2. Discretionary Trust: In this type of agreement, the beneficiaries may grant the trustees broader decision-making powers, allowing them to exercise discretion in managing and conducting the real estate business. The trustees would still have a duty to act in the best interests of the beneficiaries but would have more flexibility in day-to-day operations. 3. Revocable Trust: This agreement could also be structured as a revocable trust, allowing the beneficiaries to modify or terminate the trust and its provisions at any time. This type of trust provides flexibility for beneficiaries who may want to make changes to the trust structure in the future. 4. Irrevocable Trust: Conversely, an irrevocable trust would restrict the ability of the beneficiaries to modify or terminate the trust without the consent of all parties involved. This type of trust offers more certainty and stability in the management and conduct of the real estate business. It is important to consult with legal professionals when establishing or entering into the Orange California Agreement and Declaration of Real Estate Business Trust or its variants to ensure that all legal requirements are met and that the trust structure adequately reflects the intentions and desires of all parties involved.
Para su conveniencia, debajo del texto en español le brindamos la versión completa de este formulario en inglés. For your convenience, the complete English version of this form is attached below the Spanish version.
