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 Lima Arizona Agreement and Declaration of Real Estate Business Trust is a legally binding document that outlines the terms and conditions of a trust formed in Lima, Arizona. This trust, known as the Massachusetts Nominee Realty Trust, operates under the principle that the trustees involved will only act in accordance with the directives given by the trust beneficiaries. The primary purpose of the Lima Arizona Agreement and Declaration of Real Estate Business Trust — Massachusetts Nominee Realty Trust is to establish a real estate business trust structure in which the trustees are not granted absolute authority, but rather have a fiduciary duty to carry out the wishes of the beneficiaries. This ensures that the trust is managed in a manner that aligns with the beneficiaries' best interests. There are several types of Lima Arizona Agreement and Declaration of Real Estate Business Trust — Massachusetts Nominee Realty Trust structures, each with its own specific characteristics and objectives. Some common types include: 1. Revocable trust: This type of trust allows the beneficiaries to alter or revoke the trust agreement during their lifetime. It provides flexibility and control over the trust's assets. 2. Irrevocable trust: In an irrevocable trust, the beneficiaries relinquish their ability to modify or terminate the trust once it is established. This type of trust offers potential tax advantages and asset protection. 3. Testamentary trust: A testamentary trust is created as part of a will and does not take effect until after the granter's death. It allows for the distribution of assets to beneficiaries according to the specified terms. 4. Charitable trust: A charitable trust is established for the purpose of benefiting a specific charitable cause or organization. It allows individuals to support charitable endeavors while potentially receiving certain tax benefits. 5. Special needs trust: A special needs trust is designed to provide financial support for individuals with disabilities without affecting their eligibility for government assistance programs. It ensures that the trust funds are used to enhance the beneficiary's quality of life. Regardless of the specific type, the Lima Arizona Agreement and Declaration of Real Estate Business Trust — Massachusetts Nominee Realty Trust emphasizes the importance of the trustees acting solely in accordance with the directives given by the beneficiaries. This ensures transparency, accountability, and effective management of the trust's assets and operations.The Lima Arizona Agreement and Declaration of Real Estate Business Trust is a legally binding document that outlines the terms and conditions of a trust formed in Lima, Arizona. This trust, known as the Massachusetts Nominee Realty Trust, operates under the principle that the trustees involved will only act in accordance with the directives given by the trust beneficiaries. The primary purpose of the Lima Arizona Agreement and Declaration of Real Estate Business Trust — Massachusetts Nominee Realty Trust is to establish a real estate business trust structure in which the trustees are not granted absolute authority, but rather have a fiduciary duty to carry out the wishes of the beneficiaries. This ensures that the trust is managed in a manner that aligns with the beneficiaries' best interests. There are several types of Lima Arizona Agreement and Declaration of Real Estate Business Trust — Massachusetts Nominee Realty Trust structures, each with its own specific characteristics and objectives. Some common types include: 1. Revocable trust: This type of trust allows the beneficiaries to alter or revoke the trust agreement during their lifetime. It provides flexibility and control over the trust's assets. 2. Irrevocable trust: In an irrevocable trust, the beneficiaries relinquish their ability to modify or terminate the trust once it is established. This type of trust offers potential tax advantages and asset protection. 3. Testamentary trust: A testamentary trust is created as part of a will and does not take effect until after the granter's death. It allows for the distribution of assets to beneficiaries according to the specified terms. 4. Charitable trust: A charitable trust is established for the purpose of benefiting a specific charitable cause or organization. It allows individuals to support charitable endeavors while potentially receiving certain tax benefits. 5. Special needs trust: A special needs trust is designed to provide financial support for individuals with disabilities without affecting their eligibility for government assistance programs. It ensures that the trust funds are used to enhance the beneficiary's quality of life. Regardless of the specific type, the Lima Arizona Agreement and Declaration of Real Estate Business Trust — Massachusetts Nominee Realty Trust emphasizes the importance of the trustees acting solely in accordance with the directives given by the beneficiaries. This ensures transparency, accountability, and effective management of the trust's assets and operations.
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.
