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 Massachusetts Agreement and Declaration of Real Estate Business Trust refers to a legal document that establishes the creation and operation of a real estate business trust in Massachusetts. This type of trust is commonly known as the Massachusetts Nominee Realty Trust, and it functions under the condition that the trustees are obligated to act solely according to the instructions and directions provided by the beneficiaries. The primary purpose of this agreement is to outline the roles and responsibilities of all involved parties, including the beneficiaries and trustees, in the real estate business trust. It sets clear guidelines for how the trust's assets and affairs should be managed and regulated in adherence to Massachusetts state laws. The Massachusetts Agreement and Declaration of Real Estate Business Trust commonly contains the following key elements: 1. Trust Name: The agreement establishes the name of the trust, typically including the language "Massachusetts Nominee Realty Trust" to conform with local laws. 2. Trust Purpose: It outlines the specific objectives and purposes for which the trust is formed, such as acquiring, managing, and selling real estate properties for the benefit of the trust's beneficiaries. 3. Beneficiaries: The agreement identifies the individuals or entities who are to receive benefits from the trust, outlining their rights, interests, and entitlements. 4. Trustees: The agreement appoints the trustees who will oversee the trust's operations, making it clear that they are to act solely based on the instructions and directions provided by the beneficiaries. 5. Powers and Limitations: The agreement specifies the powers granted to the trustees, including the authority to enter into contracts, manage assets, and make investment decisions. It may also include any limitations or restrictions on the trustees' powers. 6. Distribution of Profits: The agreement establishes how profits and income generated by the trust should be distributed among the beneficiaries, according to the direction of the trustees. 7. Dissolution: The agreement outlines the circumstances under which the trust may be dissolved, as well as the procedure for distributing remaining assets among the beneficiaries. Different types of Massachusetts Agreement and Declaration of Real Estate Business Trust — Massachusetts Nominee Realty Trust may exist depending on specific variations or requirements, such as: 1. Single-Asset Nominee Realty Trust: A trust that holds and manages a single real estate asset, typically for the benefit of a single beneficiary or a group of beneficiaries. 2. Multi-Asset Nominee Realty Trust: A trust that holds and manages multiple real estate assets, providing benefits to multiple beneficiaries with varying proportions of interests. 3. Fixed-Term Nominee Realty Trust: A trust that is established for a predetermined period, after which it will be dissolved, and the assets will be distributed among the beneficiaries. 4. Revocable Nominee Realty Trust: A trust that allows the trust or (the creator of the trust) to modify or revoke the trust's terms during their lifetime. 5. Irrevocable Nominee Realty Trust: A trust that cannot be altered or revoked by the trust or once it is created, providing more permanence and stability to the trust's structure and objectives. These variations ensure that the Massachusetts Agreement and Declaration of Real Estate Business Trust can be tailored to suit the specific needs and requirements of the individuals or entities involved in the real estate business trust.The Massachusetts Agreement and Declaration of Real Estate Business Trust refers to a legal document that establishes the creation and operation of a real estate business trust in Massachusetts. This type of trust is commonly known as the Massachusetts Nominee Realty Trust, and it functions under the condition that the trustees are obligated to act solely according to the instructions and directions provided by the beneficiaries. The primary purpose of this agreement is to outline the roles and responsibilities of all involved parties, including the beneficiaries and trustees, in the real estate business trust. It sets clear guidelines for how the trust's assets and affairs should be managed and regulated in adherence to Massachusetts state laws. The Massachusetts Agreement and Declaration of Real Estate Business Trust commonly contains the following key elements: 1. Trust Name: The agreement establishes the name of the trust, typically including the language "Massachusetts Nominee Realty Trust" to conform with local laws. 2. Trust Purpose: It outlines the specific objectives and purposes for which the trust is formed, such as acquiring, managing, and selling real estate properties for the benefit of the trust's beneficiaries. 3. Beneficiaries: The agreement identifies the individuals or entities who are to receive benefits from the trust, outlining their rights, interests, and entitlements. 4. Trustees: The agreement appoints the trustees who will oversee the trust's operations, making it clear that they are to act solely based on the instructions and directions provided by the beneficiaries. 5. Powers and Limitations: The agreement specifies the powers granted to the trustees, including the authority to enter into contracts, manage assets, and make investment decisions. It may also include any limitations or restrictions on the trustees' powers. 6. Distribution of Profits: The agreement establishes how profits and income generated by the trust should be distributed among the beneficiaries, according to the direction of the trustees. 7. Dissolution: The agreement outlines the circumstances under which the trust may be dissolved, as well as the procedure for distributing remaining assets among the beneficiaries. Different types of Massachusetts Agreement and Declaration of Real Estate Business Trust — Massachusetts Nominee Realty Trust may exist depending on specific variations or requirements, such as: 1. Single-Asset Nominee Realty Trust: A trust that holds and manages a single real estate asset, typically for the benefit of a single beneficiary or a group of beneficiaries. 2. Multi-Asset Nominee Realty Trust: A trust that holds and manages multiple real estate assets, providing benefits to multiple beneficiaries with varying proportions of interests. 3. Fixed-Term Nominee Realty Trust: A trust that is established for a predetermined period, after which it will be dissolved, and the assets will be distributed among the beneficiaries. 4. Revocable Nominee Realty Trust: A trust that allows the trust or (the creator of the trust) to modify or revoke the trust's terms during their lifetime. 5. Irrevocable Nominee Realty Trust: A trust that cannot be altered or revoked by the trust or once it is created, providing more permanence and stability to the trust's structure and objectives. These variations ensure that the Massachusetts Agreement and Declaration of Real Estate Business Trust can be tailored to suit the specific needs and requirements of the individuals or entities involved in the real estate business trust.
