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 Dakota Agreement and Declaration of Real Estate Business Trust, also known as the Massachusetts Nominee Realty Trust, outlines the legal framework and provisions for establishing a real estate business trust in North Dakota. This trust structure allows beneficiaries to direct the actions of the trustees who manage the trust's real estate assets. Under this agreement, the trustees of the Massachusetts Nominee Realty Trust are obligated to act solely as directed by the beneficiaries. This means that the beneficiaries hold the authority to make decisions regarding the management, leasing, sale, or other transactions involving the trust's real estate properties. The North Dakota Agreement and Declaration of Real Estate Business Trust — Massachusetts Nominee Realty Trust allows for different types of trust structures depending on the specific needs and goals of the beneficiaries. Some of these variations may include: 1. Revocable Trust: This type of trust allows beneficiaries to change or revoke the trust agreement during their lifetime. It offers flexibility in managing real estate assets and allows beneficiaries to modify the trust as circumstances change. 2. Irrevocable Trust: In contrast to the revocable trust, an irrevocable trust cannot be altered or revoked by the beneficiaries once it is established. It provides a higher level of asset protection and may offer tax benefits. 3. Land Trust: A land trust is a specific type of trust that is commonly used to hold and manage a single real estate property or multiple properties. It provides privacy for property owners by keeping their names off the public record and transferring ownership to the trust. 4. Business Trust: This type of trust is commonly used for commercial real estate ventures. It allows investors to pool their resources and establish a trust that acts as the legal entity for acquiring, managing, and developing real estate properties. Irrespective of the type of trust established, the North Dakota Agreement and Declaration of Real Estate Business Trust — Massachusetts Nominee Realty Trust ensures that the trustees act solely based on the directions provided by the beneficiaries. This arrangement allows beneficiaries to have significant control and decision-making power over their real estate investments while enjoying the benefits of a trust structure.The North Dakota Agreement and Declaration of Real Estate Business Trust, also known as the Massachusetts Nominee Realty Trust, outlines the legal framework and provisions for establishing a real estate business trust in North Dakota. This trust structure allows beneficiaries to direct the actions of the trustees who manage the trust's real estate assets. Under this agreement, the trustees of the Massachusetts Nominee Realty Trust are obligated to act solely as directed by the beneficiaries. This means that the beneficiaries hold the authority to make decisions regarding the management, leasing, sale, or other transactions involving the trust's real estate properties. The North Dakota Agreement and Declaration of Real Estate Business Trust — Massachusetts Nominee Realty Trust allows for different types of trust structures depending on the specific needs and goals of the beneficiaries. Some of these variations may include: 1. Revocable Trust: This type of trust allows beneficiaries to change or revoke the trust agreement during their lifetime. It offers flexibility in managing real estate assets and allows beneficiaries to modify the trust as circumstances change. 2. Irrevocable Trust: In contrast to the revocable trust, an irrevocable trust cannot be altered or revoked by the beneficiaries once it is established. It provides a higher level of asset protection and may offer tax benefits. 3. Land Trust: A land trust is a specific type of trust that is commonly used to hold and manage a single real estate property or multiple properties. It provides privacy for property owners by keeping their names off the public record and transferring ownership to the trust. 4. Business Trust: This type of trust is commonly used for commercial real estate ventures. It allows investors to pool their resources and establish a trust that acts as the legal entity for acquiring, managing, and developing real estate properties. Irrespective of the type of trust established, the North Dakota Agreement and Declaration of Real Estate Business Trust — Massachusetts Nominee Realty Trust ensures that the trustees act solely based on the directions provided by the beneficiaries. This arrangement allows beneficiaries to have significant control and decision-making power over their real estate investments while enjoying the benefits of a trust structure.
