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.
Real estate trust in Massachusetts, specifically for Hampden County, refers to a legal arrangement where a trusted trustee manages and holds property assets on behalf of beneficiaries. This allows for the efficient distribution, protection, and administration of real estate assets within the county. Hampden County offers several types of real estate trusts that individuals and organizations can utilize to meet their specific needs. These include: 1. Living Trust: Also known as inter vivos trust, this form of real estate trust allows individuals to transfer their property into a trust during their lifetime. The trust creator (granter) can maintain control over the assets until their death, at which point the property is smoothly passed down to designated beneficiaries, avoiding probate. 2. Revocable Trust: A revocable trust, as the name suggests, can be modified or revoked by the trust creator during their lifetime. Property held in this trust remains under the granter's control until they pass away. Upon death, the assets are transferred to the designated beneficiaries without the need for probate. 3. Irrevocable Trust: Unlike a revocable trust, an irrevocable trust cannot be modified or terminated by the granter. Once assets are transferred into this trust, they are effectively removed from the granter's estate. Irrevocable trusts offer potential tax benefits while providing asset protection from creditors. 4. Charitable Trust: This type of real estate trust allows individuals to designate a portion of their assets to charitable organizations. It provides a way to support causes and receive potential tax benefits. Charitable trusts can be either revocable or irrevocable, depending on the individual's objectives. 5. Testamentary Trust: Rather than being established during the granter's lifetime, a testamentary trust is created through a person's will. It comes into effect upon their death and allows for the management and distribution of their real estate assets according to their stated intentions. 6. Special Needs Trust: Hampden County also offers special needs trusts, which are designed to provide support for individuals with disabilities. These trusts secure the financial future of a disabled person while potentially preserving their eligibility for government benefits. Real estate trusts in Hampden County, Massachusetts, provide various advantages, including avoiding probate, maintaining privacy, managing assets efficiently, potential tax benefits, and ensuring the smooth transfer of property. It is crucial to consult legal and financial professionals who specialize in trust planning to determine the most suitable type of trust based on individual circumstances and goals.
