A nominee trust is a trust in which the trustee holds legal title to the trust property for the trust's beneficiaries, but the beneficiaries exercise the controlling powers, and the actions that the trustees may take on their own are very limited. Such trusts are a common device for holding title to real estate, and afford certain tax advantages. A nominee trust is not a trust in the strict classical sense, because of the trustee-beneficiary relationship. Despite a nominee trust's nontraditional relationship between trustee and beneficiary, such a trust must still adhere to the rule that no trust exists when the same individual is the sole settlor, sole trustee, and sole beneficiary. The trustees of a nominee trust act at the direction of the beneficiaries.
Florida Nominee Trust is a legal entity commonly used in the state of Florida for asset protection, estate planning, and privacy purposes. This type of trust is created by an individual or entity, known as the "settler," who transfers their assets to a trustee to be held for the benefit of the trust's beneficiaries. The Florida Nominee Trust operates under the Florida Land Trust Act (Florida Statute 689.071). It essentially allows the settler to maintain control and ownership of the assets while preserving confidentiality and anonymity, as the trustee's name is listed on public records instead of the settler's. This feature makes it an attractive option for investors, real estate owners, and business owners who wish to keep their personal information private and protect their assets from potential liabilities. There are various types of Florida Nominee Trusts, each serving specific purposes: 1. Revocable Florida Nominee Trust: This trust can be modified, changed, or revoked by the settler at any time during their lifetime. It offers flexibility and allows for asset management and transfer if the settler becomes incapacitated or passes away. Moreover, it helps to avoid probate by ensuring a smooth succession of assets. 2. Irrevocable Florida Nominee Trust: Once established, this trust cannot be modified or revoked without the consent of the beneficiaries. It provides enhanced asset protection against creditors' claims and can be used for tax planning, charitable purposes, or Medicaid planning. 3. Land Trust: A subtype of the Florida Nominee Trust, the Land Trust is mainly focused on real estate properties. It allows investors to hold title to real property while maintaining full control over management, leasing, selling, and transferring without revealing their identity. It offers privacy and is frequently used for commercial real estate investments, development projects, or personal residences. 4. Business Trust: This type of Florida Nominee Trust enables the settler to place their business interests within the trust. It protects the assets and identity of the business owner, making it an ideal option for entrepreneurs, company founders, or owners of multiple businesses. Overall, a Florida Nominee Trust is a powerful legal tool that offers asset protection, privacy, and estate planning benefits. Whether it is a revocable, irrevocable, land, or business trust, the specific type chosen depends on the individual's objectives, level of control desired, and asset protection needs. It is advised to consult with an experienced attorney or estate planner to establish and manage a Florida Nominee Trust effectively.
