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.
Maine Agreement and Declaration of Real Estate Business Trust — Massachusetts Nominee RealtThusus— - Trustees to Act only as Directed by Beneficiaries is a legal document that outlines the terms, conditions, and responsibilities of a real estate business trust in the state of Maine. This agreement is specifically related to the Massachusetts Nominee Realty Trust and sets forth the requirement for trustees to act only under the direction of the beneficiaries. The Maine Agreement and Declaration of Real Estate Business Trust — Massachusetts Nominee RealtThusus— - Trustees to Act only as Directed by Beneficiaries serves as a foundational document that governs the operation and management of real estate assets held in trust. It establishes the trust entity, identifies the trustees and beneficiaries, and outlines their respective roles and responsibilities. Key terms and provisions covered in the agreement may include: 1. Purpose: Clearly defining the purpose of the trust, such as acquiring, owning, managing, and disposing of real estate assets. 2. Trust Property: Identifying the properties that are held in trust and specifying the rights and limitations associated with the trust property. 3. Trustees: Naming the individuals or entities who will act as trustees and outlining their fiduciary duties, including the requirement to act only as directed by the beneficiaries. 4. Beneficiaries: Identifying the individuals or entities who are entitled to the benefits and income generated by the trust property. 5. Powers and Limitations: Enumerating the powers granted to the trustees, such as the ability to lease, sell, mortgage, or otherwise transact with the trust property. It may also include limitations or restrictions imposed on the trustees' actions. 6. Distribution of Income: Establishing how the income, proceeds, or profits derived from the trust property will be distributed to the beneficiaries. 7. Amendment and Termination: Outlining the procedures and requirements for amending or terminating the trust agreement. Different types or variations of the Maine Agreement and Declaration of Real Estate Business Trust — Massachusetts Nominee RealtThusus— - Trustees to Act only as Directed by Beneficiaries may exist based on specific circumstances or preferences of the parties involved. These variations can include agreements tailored to different types of real estate assets, specific beneficiaries, or alternative provisions for trustee direction and control. It is important to consult with legal professionals familiar with Maine law and real estate trusts to ensure proper compliance and drafting of the Maine Agreement and Declaration of Real Estate Business Trust — Massachusetts Nominee RealtThusus— - Trustees to Act only as Directed by Beneficiaries that meets the specific needs of the parties involved.
