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 District of Columbia Agreement and Declaration of Real Estate Business Trust, specifically the Massachusetts Nominee Realty Trust, is a legal document that establishes a trust arrangement for real estate purposes in the District of Columbia. This trust framework allows for the secure management and administration of real estate assets within the jurisdiction. The Massachusetts Nominee Realty Trust is a specific type of real estate business trust within the District of Columbia Agreement and Declaration. It is structured in a way that mandates the trustees to act only as directed by the beneficiaries. This provision ensures that the interests and directives of the trust beneficiaries are prioritized and that the appointed trustees are bound to follow their instructions. This arrangement provides enhanced protection and control for the beneficiaries over the management of the real estate assets held within the trust. Additionally, the District of Columbia Agreement and Declaration may accommodate other types of real estate business trusts beyond the Massachusetts Nominee Realty Trust. These variations may include but are not limited to: 1. Delaware Bare Trust: This type of trust offers straightforward and minimalistic administration, giving the beneficiary unrestricted control over the trust assets. 2. Maryland Land Trust: Designed to facilitate privacy, this trust allows for the nominal ownership of real estate by a trustee to protect the beneficial interest of the beneficiary. 3. Virginia Land Trust: Similar to the Maryland Land Trust, it allows for the nominal ownership of real estate, but it may provide different legal implications due to regional variations in legislation. It is crucial to consult legal professionals to understand the specific terms and conditions of each type of trust within the District of Columbia Agreement and Declaration. This will ensure compliance with relevant laws and regulations while tailoring the trust arrangement to meet the unique requirements of real estate ventures in the District of Columbia.
