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 Alabama Agreement and Declaration of Real Estate Business Trust is a legally binding document that establishes the Massachusetts Nominee Realty Trust and outlines the responsibilities and roles of the trustees and beneficiaries. The trust operates under the condition that the trustees can only act as directed by the beneficiaries. The main purpose of this agreement is to provide a framework for real estate investments and management. It allows the beneficiaries to have control over the decision-making process, ensuring their interests are protected. The Alabama Agreement and Declaration of Real Estate Business Trust — Massachusetts Nominee RealtThusus— - Trustees to Act only as Directed by Beneficiaries can be categorized into different types based on the specific requirements and preferences of the beneficiaries. These types may include: 1. Residential Real Estate Business Trust: This type of trust focuses on residential properties and allows beneficiaries to invest in rental houses, apartment complexes, or other residential properties for income generation. 2. Commercial Real Estate Business Trust: Designed for beneficiaries interested in commercial properties, this type of trust enables investment in office buildings, shopping centers, warehouses, or other commercial real estate ventures. 3. Mixed-Use Real Estate Business Trust: This trust combines both residential and commercial properties, aiming to provide a diversified portfolio for the beneficiaries. It allows investment in properties that serve multiple purposes, such as apartment complexes with integrated commercial spaces. 4. Land Development Real Estate Business Trust: This type of trust focuses on undeveloped land or properties with significant development potential. Beneficiaries can invest in land development projects, such as residential subdivisions, commercial complexes, or industrial parks. It is important to note that these are just a few examples of the potential types of trusts that can be formed using the Alabama Agreement and Declaration of Real Estate Business Trust — Massachusetts Nominee RealtThusus— - Trustees to Act only as Directed by Beneficiaries. The specifics of each trust will depend on the goals, preferences, and legal requirements of the beneficiaries. Overall, this agreement and declaration allow for the establishment of a trust that provides flexibility, control, and transparency to beneficiaries interested in real estate investments in Alabama.The Alabama Agreement and Declaration of Real Estate Business Trust is a legally binding document that establishes the Massachusetts Nominee Realty Trust and outlines the responsibilities and roles of the trustees and beneficiaries. The trust operates under the condition that the trustees can only act as directed by the beneficiaries. The main purpose of this agreement is to provide a framework for real estate investments and management. It allows the beneficiaries to have control over the decision-making process, ensuring their interests are protected. The Alabama Agreement and Declaration of Real Estate Business Trust — Massachusetts Nominee RealtThusus— - Trustees to Act only as Directed by Beneficiaries can be categorized into different types based on the specific requirements and preferences of the beneficiaries. These types may include: 1. Residential Real Estate Business Trust: This type of trust focuses on residential properties and allows beneficiaries to invest in rental houses, apartment complexes, or other residential properties for income generation. 2. Commercial Real Estate Business Trust: Designed for beneficiaries interested in commercial properties, this type of trust enables investment in office buildings, shopping centers, warehouses, or other commercial real estate ventures. 3. Mixed-Use Real Estate Business Trust: This trust combines both residential and commercial properties, aiming to provide a diversified portfolio for the beneficiaries. It allows investment in properties that serve multiple purposes, such as apartment complexes with integrated commercial spaces. 4. Land Development Real Estate Business Trust: This type of trust focuses on undeveloped land or properties with significant development potential. Beneficiaries can invest in land development projects, such as residential subdivisions, commercial complexes, or industrial parks. It is important to note that these are just a few examples of the potential types of trusts that can be formed using the Alabama Agreement and Declaration of Real Estate Business Trust — Massachusetts Nominee RealtThusus— - Trustees to Act only as Directed by Beneficiaries. The specifics of each trust will depend on the goals, preferences, and legal requirements of the beneficiaries. Overall, this agreement and declaration allow for the establishment of a trust that provides flexibility, control, and transparency to beneficiaries interested in real estate investments in Alabama.
