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 Arkansas Agreement and Declaration of Real Estate Business Trust, also known as the Massachusetts Nominee Realty Trust, is a legal document that outlines the establishment and operation of a real estate business trust in the state of Arkansas. This type of trust is commonly used to hold and manage real estate properties for the benefit of beneficiaries while providing the trustees with limited powers and duties. The main feature of the Arkansas Agreement and Declaration of Real Estate Business Trust is the provision that the trustees must act only as directed by the beneficiaries. This means that the trustees are bound to follow the instructions and wishes of the beneficiaries in all matters related to the management and disposition of the trust's assets. The purpose of this trust is to provide a flexible and effective method for individuals or entities to hold and control real estate properties without requiring direct ownership. By establishing a business trust, the beneficiaries can continue to enjoy the benefits and profits generated by the real estate assets without getting involved in the day-to-day management or legal complexities. There are several types or variations of the Arkansas Agreement and Declaration of Real Estate Business Trust, each with its own specific details and requirements. Some common types include: 1. Single beneficiary trust: This type of trust involves a single beneficiary who has the power to direct the trustees in all matters related to the trust's assets. The beneficiary retains ultimate control and can make decisions regarding the acquisition, sale, leasing, or other transactions involving the real estate properties. 2. Multiple beneficiary trust: In this type of trust, there are multiple beneficiaries who hold collective power to direct the trustees. The beneficiaries must come to a consensus or agreement on any decisions regarding the trust's assets. This type allows for shared decision-making among the beneficiaries. 3. Limited beneficiary trust: A limited beneficiary trust involves a specified group of beneficiaries who have the power to direct the trustees. This type restricts the number of beneficiaries and ensures that only a select few individuals or entities have control over the trust's assets. 4. Revocable or irrevocable trust: The Arkansas Agreement and Declaration of Real Estate Business Trust can be established as either revocable or irrevocable. A revocable trust allows the beneficiaries or granters to modify or terminate the trust at any time, providing them with flexibility and control. On the other hand, an irrevocable trust cannot be modified or revoked once it is established, offering greater asset protection but limiting flexibility. It is essential to consult with a qualified attorney or legal professional familiar with Arkansas laws to ensure the proper creation and operation of the Arkansas Agreement and Declaration of Real Estate Business Trust. The trust document should be tailored to meet the specific needs and goals of the beneficiaries while complying with all relevant legal requirements.
