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 Hawaii Agreement and Declaration of Real Estate Business Trust is a legal document that outlines the specific terms and conditions for operating a Real Estate Business Trust in the state of Hawaii. It is specifically applicable to the Massachusetts Nominee Realty Trust, where trustees are required to act solely as directed by the beneficiaries. In this agreement, multiple types or variations of the Hawaii Agreement and Declaration of Real Estate Business Trust may exist. Some different types may include: 1. Single Beneficiary Trusts: These trusts consist of a single beneficiary who has the authority to direct the trustee's actions regarding the real estate business activities. 2. Multiple Beneficiary Trusts: Unlike single beneficiary trusts, multiple beneficiary trusts have more than one beneficiary. In such cases, the trustee must act in accordance with the collective directions and decisions made by all beneficiaries. 3. Revocable Trusts: A revocable trust can be modified or terminated by the beneficiaries during their lifetime, allowing for flexibility in the management of the real estate assets. 4. Irrevocable Trusts: In contrast to revocable trusts, irrevocable trusts cannot be modified or terminated without the consent of all beneficiaries. This type of trust provides more stability and security for the real estate assets. 5. Non-profit Trusts: Non-profit trusts, also known as charitable trusts, are established for charitable purposes with the real estate business activities benefiting a specified charitable cause. The primary purpose of the Hawaii Agreement and Declaration of Real Estate Business Trust — Massachusetts Nominee RealtThusus— - Trustees to Act only as Directed by Beneficiaries is to ensure that trustees operate the trust in strict accordance with the instructions and directions provided by the beneficiaries. This agreement protects the interests of the beneficiaries and provides a framework for effective management of the real estate assets within the trust.The Hawaii Agreement and Declaration of Real Estate Business Trust is a legal document that outlines the specific terms and conditions for operating a Real Estate Business Trust in the state of Hawaii. It is specifically applicable to the Massachusetts Nominee Realty Trust, where trustees are required to act solely as directed by the beneficiaries. In this agreement, multiple types or variations of the Hawaii Agreement and Declaration of Real Estate Business Trust may exist. Some different types may include: 1. Single Beneficiary Trusts: These trusts consist of a single beneficiary who has the authority to direct the trustee's actions regarding the real estate business activities. 2. Multiple Beneficiary Trusts: Unlike single beneficiary trusts, multiple beneficiary trusts have more than one beneficiary. In such cases, the trustee must act in accordance with the collective directions and decisions made by all beneficiaries. 3. Revocable Trusts: A revocable trust can be modified or terminated by the beneficiaries during their lifetime, allowing for flexibility in the management of the real estate assets. 4. Irrevocable Trusts: In contrast to revocable trusts, irrevocable trusts cannot be modified or terminated without the consent of all beneficiaries. This type of trust provides more stability and security for the real estate assets. 5. Non-profit Trusts: Non-profit trusts, also known as charitable trusts, are established for charitable purposes with the real estate business activities benefiting a specified charitable cause. The primary purpose of the Hawaii Agreement and Declaration of Real Estate Business Trust — Massachusetts Nominee RealtThusus— - Trustees to Act only as Directed by Beneficiaries is to ensure that trustees operate the trust in strict accordance with the instructions and directions provided by the beneficiaries. This agreement protects the interests of the beneficiaries and provides a framework for effective management of the real estate assets within the trust.
