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 California Agreement and Declaration of Real Estate Business Trust, also known as the Massachusetts Nominee Realty Trust, is a legal document that establishes the framework for a real estate trust in the state of California. This trust allows individuals or entities to hold and manage real estate properties on behalf of beneficiaries who benefit from the property's income or value appreciation. The trustees are responsible for the management and administration of the trust assets but must act strictly according to the directions given by the beneficiaries. The primary purpose of the California Agreement and Declaration of Real Estate Business Trust is to provide a legal structure for the management and protection of real estate assets. By creating this trust, the property owner can ensure that their real estate investments are managed professionally and in accordance with their specific instructions, as laid out in the trust agreement. Within the scope of the California Agreement and Declaration of Real Estate Business Trust, there can be different types or variations. Some common variations may include: 1. Revocable Real Estate Business Trust: This type of trust allows the beneficiary or the settler (the person who created the trust) to modify or revoke the trust at any time during their lifetime. 2. Irrevocable Real Estate Business Trust: As the name suggests, this type of trust cannot be modified, altered, or revoked once it is established, except under specific circumstances outlined in the trust agreement or by law. 3. Living Trust: A living trust is created during the lifetime of the settler and becomes effective immediately, allowing the trustee to manage the trust assets in accordance with the beneficiaries' directions without the need for probate. 4. Testamentary Trust: This type of trust comes into effect upon the death of the settler. The trust assets are transferred to the trustee, who then manages and distributes them as per the settler's instructions outlined in their will. The California Agreement and Declaration of Real Estate Business Trust — Massachusetts Nominee Realty Trust emphasizes the critical aspect of trustees only acting as directed by beneficiaries. This means that the trustees must follow the beneficiaries' instructions carefully and fulfill their fiduciary duties in their best interests. The trust agreement serves as the guiding framework for the trustee's actions and ensures that the beneficiaries' rights and interests are protected. In summary, the California Agreement and Declaration of Real Estate Business Trust — Massachusetts Nominee Realty Trust is a legally binding document that establishes a framework for the management and protection of real estate assets in California. It allows for different variations of trusts, such as revocable or irrevocable, living or testamentary trusts. The trustees must adhere to the beneficiaries' directions and act in their best interests, ensuring that the trust assets are managed and distributed accordingly.
