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 North Carolina Agreement and Declaration of Real Estate Business Trust is a legal document that establishes a business trust for real estate purposes in North Carolina. This specific agreement is known as the Massachusetts Nominee Realty Trust, wherein Trustees are required to act only as directed by the beneficiaries. Real Estate Business Trust: A Real Estate Business Trust is a legal entity created for the purpose of holding and managing real estate assets. It allows multiple individuals or entities to pool their resources and invest in real estate collectively, with the trust acting as the owner and manager of the properties. Massachusetts Nominee Realty Trust: The Massachusetts Nominee Realty Trust is a specific type of Real Estate Business Trust. It operates in Massachusetts and follows the statutory requirements and regulations set forth by the state. The trustee of this trust is required to act solely on the instructions and directions provided by the beneficiaries of the trust. Trustees to Act only as Directed by Beneficiaries: Under this agreement and declaration, the trustees are legally bound to act in accordance with the instructions and directions provided to them by the beneficiaries of the trust. This means that the trustees cannot make any decisions or take any actions without explicit consent or authorization from the beneficiaries. Different Types of North Carolina Agreement and Declaration of Real Estate Business Trust — Massachusetts Nominee RealtThusus— - Trustees to Act only as Directed by Beneficiaries: While the core principles of the North Carolina Agreement and Declaration of Real Estate Business Trust — Massachusetts Nominee RealtThusus— - Trustees to Act only as Directed by Beneficiaries remain the same, there may be different variations or modifications based on specific circumstances or requirements. Some potential types or considerations may include: 1. Revocable and Irrevocable Trusts: The agreement can specify whether the trust is revocable, meaning it can be modified or terminated by the beneficiaries, or irrevocable, meaning it cannot be altered without the consent of all parties involved. 2. Beneficiary Powers: The agreement can outline the extent of powers granted to beneficiaries over the trust's assets, such as the ability to make decisions regarding property management, leasing, renovations, or sales. 3. Specific Limitations or Restrictions: The agreement might include specific limitations or restrictions on the actions or decisions that trustees can make without beneficiary approval, ensuring that beneficiaries have a significant level of control and oversight over the trust's operations. 4. Successor Trustees: The agreement may also address the appointment of successor trustees, providing a process or criteria for selecting new trustees in the event that the original trustee(s) are no longer able or willing to act. It is essential to consult with legal professionals to draft the specific terms and conditions of the North Carolina Agreement and Declaration of Real Estate Business Trust — Massachusetts Nominee RealtThusus— - Trustees to Act only as Directed by Beneficiaries to align with individual circumstances and comply with applicable laws and regulations.The North Carolina Agreement and Declaration of Real Estate Business Trust is a legal document that establishes a business trust for real estate purposes in North Carolina. This specific agreement is known as the Massachusetts Nominee Realty Trust, wherein Trustees are required to act only as directed by the beneficiaries. Real Estate Business Trust: A Real Estate Business Trust is a legal entity created for the purpose of holding and managing real estate assets. It allows multiple individuals or entities to pool their resources and invest in real estate collectively, with the trust acting as the owner and manager of the properties. Massachusetts Nominee Realty Trust: The Massachusetts Nominee Realty Trust is a specific type of Real Estate Business Trust. It operates in Massachusetts and follows the statutory requirements and regulations set forth by the state. The trustee of this trust is required to act solely on the instructions and directions provided by the beneficiaries of the trust. Trustees to Act only as Directed by Beneficiaries: Under this agreement and declaration, the trustees are legally bound to act in accordance with the instructions and directions provided to them by the beneficiaries of the trust. This means that the trustees cannot make any decisions or take any actions without explicit consent or authorization from the beneficiaries. Different Types of North Carolina Agreement and Declaration of Real Estate Business Trust — Massachusetts Nominee RealtThusus— - Trustees to Act only as Directed by Beneficiaries: While the core principles of the North Carolina Agreement and Declaration of Real Estate Business Trust — Massachusetts Nominee RealtThusus— - Trustees to Act only as Directed by Beneficiaries remain the same, there may be different variations or modifications based on specific circumstances or requirements. Some potential types or considerations may include: 1. Revocable and Irrevocable Trusts: The agreement can specify whether the trust is revocable, meaning it can be modified or terminated by the beneficiaries, or irrevocable, meaning it cannot be altered without the consent of all parties involved. 2. Beneficiary Powers: The agreement can outline the extent of powers granted to beneficiaries over the trust's assets, such as the ability to make decisions regarding property management, leasing, renovations, or sales. 3. Specific Limitations or Restrictions: The agreement might include specific limitations or restrictions on the actions or decisions that trustees can make without beneficiary approval, ensuring that beneficiaries have a significant level of control and oversight over the trust's operations. 4. Successor Trustees: The agreement may also address the appointment of successor trustees, providing a process or criteria for selecting new trustees in the event that the original trustee(s) are no longer able or willing to act. It is essential to consult with legal professionals to draft the specific terms and conditions of the North Carolina Agreement and Declaration of Real Estate Business Trust — Massachusetts Nominee RealtThusus— - Trustees to Act only as Directed by Beneficiaries to align with individual circumstances and comply with applicable laws and regulations.
