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.
Connecticut Agreement and Declaration of Real Estate Business Trust refers to a legal document that establishes and governs the operations of a real estate business trust in the state of Connecticut. It outlines the rights, responsibilities, and obligations of the trustees and beneficiaries involved. The Massachusetts Nominee Realty Trust, on the other hand, is a type of real estate trust that operates in Massachusetts. It allows for the holding of real estate assets by a trustee on behalf of the beneficiaries of the trust. The trustees are required to act solely in accordance with the directions given by the beneficiaries, ensuring that the interests of the beneficiaries are protected. This type of trust arrangement provides a level of flexibility and control for the beneficiaries, as they have the power to make decisions and direct the trustees on how to manage the trust assets. It ensures that the trustees act solely in the best interests of the beneficiaries, following the guidelines and instructions provided. Different variations or types of Connecticut Agreement and Declaration of Real Estate Business Trust may include specific clauses or provisions tailored to the unique requirements of the trust or the preferences of the parties involved. These may include provisions related to distributions of income, management and operation of the trust, procedures for appointing new trustees, and the transfer or disposition of trust assets. In conclusion, the Connecticut Agreement and Declaration of Real Estate Business Trust — Massachusetts Nominee RealtThusus— - Trustees to Act only as Directed by Beneficiaries is a legal document that establishes the framework for a real estate business trust operating in Connecticut. It ensures that trustees act solely according to the instructions and directions provided by the beneficiaries, promoting transparency, control, and protection for the beneficiaries in the management of their trust assets.
