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 New Hampshire Agreement and Declaration of Real Estate Business Trust is a legal document that establishes the framework for a Real Estate Business Trust in the state of New Hampshire. This type of trust is used mainly in Massachusetts and is sometimes referred to as the Massachusetts Nominee Realty Trust. In this trust, the trustees are designated to act solely based on the directives provided by the beneficiaries of the trust. The trustees have limited control and decision-making powers, as their actions must align with the wishes and instructions of the beneficiaries. This ensures that the beneficiaries have complete authority over the management and operation of the trust. The New Hampshire Agreement and Declaration of Real Estate Business Trust outlines various important details including the trust's purpose, the powers and responsibilities of the trustees, the rights and obligations of the beneficiaries, and the procedures for managing the trust's real estate assets. The document may also include provisions regarding the distribution of income and expenses, restrictions on transferring or selling the trust's assets, and procedures for appointing successor trustees or removing existing trustees. Different types or variations of the New Hampshire Agreement and Declaration of Real Estate Business Trust may exist based on specific requirements and preferences of the trust creator (granter) and beneficiaries. Some additional variations may include: 1. Revocable Real Estate Business Trust: This type of trust allows the granter to revoke or modify the trust terms during their lifetime. The beneficiaries' interests are subject to change based on the granter's decisions and instructions. 2. Irrevocable Real Estate Business Trust: Once established, an irrevocable trust cannot be altered or revoked by the granter. The beneficiaries' interests are typically fixed and cannot be modified without their consent or a court order. 3. Charitable Real Estate Business Trust: This type of trust is established for charitable purposes, with the trust's income or assets dedicated to supporting charitable organizations or causes. Regardless of the specific type, the New Hampshire Agreement and Declaration of Real Estate Business Trust — Massachusetts Nominee RealtThusus— - Trustees to Act only as Directed by Beneficiaries document serves as the foundation for establishing and managing these trusts, ensuring that the beneficiaries' interests are prioritized and their control over the trust is protected.
