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 Delaware Agreement and Declaration of Real Estate Business Trust is a legal document that establishes a business trust in the state of Delaware. Specifically, the Massachusetts Nominee Realty Trust is created as a type of business trust in Massachusetts, with trustees who are directed to act solely based on the instructions and interests of the beneficiaries. The purpose of this agreement is to define the roles, responsibilities, and limitations of the trustees in managing the real estate assets held by the trust. It ensures that the trustees only make decisions and take actions as directed by the beneficiaries, who hold the control and decision-making power over the trust's operations. The Delaware Agreement and Declaration of Real Estate Business Trust — Massachusetts Nominee Realty Trust states the rights and obligations of the trustees and beneficiaries, including the distribution of income and profits generated by the real estate assets. It may also outline the procedures for appointing new trustees or removing existing ones, as well as the voting rights and decision-making processes within the trust. It is important to note that there may be various types of Delaware Agreement and Declaration of Real Estate Business Trust — Massachusetts Nominee Realty Trust, as the specific terms and conditions of each trust can vary depending on the preferences and requirements of the parties involved. Some additional types may include: 1. Fixed-Term Trust: This type of trust may have a predetermined duration specified in the agreement, after which it may be dissolved or renewed based on the beneficiaries' decisions. 2. Revocable Trust: In a revocable trust, the beneficiaries hold the authority to modify or terminate the trust during their lifetime. 3. Irrevocable Trust: Unlike a revocable trust, an irrevocable trust cannot be altered or revoked once it is created, providing more certainty and asset protection. 4. Living Trust: A living trust is established during the granter's lifetime and can be either revocable or irrevocable. It allows for the seamless management and transfer of assets, avoiding probate upon the granter's death. 5. Testamentary Trust: This type of trust is created through a will and goes into effect after the granter's death. It allows for the distribution of assets according to the granter's wishes and may offer certain tax benefits. In summary, the Delaware Agreement and Declaration of Real Estate Business Trust — Massachusetts Nominee Realty Trust serves as a legally binding document that outlines the establishment, roles, and responsibilities of trustees in managing the Massachusetts Nominee Realty Trust. By strictly acting as directed by the beneficiaries, the trustees ensure that the trust's activities align with the beneficiaries' interests and goals.
