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 Indiana Agreement and Declaration of Real Estate Business Trust (REST) is a legal document that establishes a trust structure in the state of Indiana. Specifically, the Massachusetts Nominee Realty Trust limits the authority of trustees to act solely according to the directions of beneficiaries. This agreement ensures that the beneficiaries of the trust have complete control over the decision-making process related to the trust's real estate business operations. Key features of the Indiana Agreement and Declaration of REST — Massachusetts Nominee Realty Trust include: 1. Trustees as Directives: The trust explicitly states that the trustees appointed will act only as directed by the beneficiaries. This provision ensures that the trustees' authority is limited to the instructions given by the beneficiaries, preventing any autonomous decision-making on behalf of the trustees. 2. Beneficiary Control: The beneficiaries retain substantial control over the trust's real estate business operations. This control extends to crucial matters such as property acquisition, leasing, financing, and management, among others. Any important decision related to the trust's real estate ventures requires the beneficiaries' consent. 3. Trustee Duties: While the trustees' discretion is limited, they still have fiduciary duties towards the beneficiaries. These duties include loyalty, confidentiality, prudence, and accountability. The trustees are obliged to act in the best interest of the beneficiaries within the boundaries set by their directives. 4. Amendments and Termination: The Indiana Agreement and Declaration of REST — Massachusetts Nominee Realty Trust allows for potential amendments to the agreement, provided all beneficiaries agree to the changes. Additionally, beneficiaries may decide to terminate the trust at any time by mutual agreement. Different variations or types of Indiana Agreement and Declaration of Real Estate Business Trusts with limited trustee authority may exist depending on the specific provisions outlined within the document. Each trust structure can be customized to cater to the unique needs and objectives of the beneficiaries and can encompass various real estate assets, such as residential, commercial, or industrial properties. It is important to consult with legal professionals when drafting an Indiana Agreement and Declaration of REST — Massachusetts Nominee Realty Trust to ensure that the trust's terms comply with the relevant state laws and protect the interests of the beneficiaries.The Indiana Agreement and Declaration of Real Estate Business Trust (REST) is a legal document that establishes a trust structure in the state of Indiana. Specifically, the Massachusetts Nominee Realty Trust limits the authority of trustees to act solely according to the directions of beneficiaries. This agreement ensures that the beneficiaries of the trust have complete control over the decision-making process related to the trust's real estate business operations. Key features of the Indiana Agreement and Declaration of REST — Massachusetts Nominee Realty Trust include: 1. Trustees as Directives: The trust explicitly states that the trustees appointed will act only as directed by the beneficiaries. This provision ensures that the trustees' authority is limited to the instructions given by the beneficiaries, preventing any autonomous decision-making on behalf of the trustees. 2. Beneficiary Control: The beneficiaries retain substantial control over the trust's real estate business operations. This control extends to crucial matters such as property acquisition, leasing, financing, and management, among others. Any important decision related to the trust's real estate ventures requires the beneficiaries' consent. 3. Trustee Duties: While the trustees' discretion is limited, they still have fiduciary duties towards the beneficiaries. These duties include loyalty, confidentiality, prudence, and accountability. The trustees are obliged to act in the best interest of the beneficiaries within the boundaries set by their directives. 4. Amendments and Termination: The Indiana Agreement and Declaration of REST — Massachusetts Nominee Realty Trust allows for potential amendments to the agreement, provided all beneficiaries agree to the changes. Additionally, beneficiaries may decide to terminate the trust at any time by mutual agreement. Different variations or types of Indiana Agreement and Declaration of Real Estate Business Trusts with limited trustee authority may exist depending on the specific provisions outlined within the document. Each trust structure can be customized to cater to the unique needs and objectives of the beneficiaries and can encompass various real estate assets, such as residential, commercial, or industrial properties. It is important to consult with legal professionals when drafting an Indiana Agreement and Declaration of REST — Massachusetts Nominee Realty Trust to ensure that the trust's terms comply with the relevant state laws and protect the interests of the beneficiaries.
