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 Mexico Agreement and Declaration of Real Estate Business Trust is a legal document applicable in the state of New Mexico. It establishes the Massachusetts Nominee Realty Trust, which operates as a real estate business trust. This type of trust is operated by trustees who solely act according to the directions received from the beneficiaries. In the realm of real estate, trusts are commonly used for various purposes, such as holding and managing properties on behalf of beneficiaries, protecting assets, and facilitating efficient property management. The New Mexico Agreement and Declaration of Real Estate Business Trust enables individuals or entities to establish a trust that focuses on real estate investments and management. The agreement outlines the specifics of the trust, including the roles and responsibilities of the trustees and beneficiaries. The trustees, who are appointed by the trust's creator or granter, hold legal title to the trust assets, which primarily consist of real estate properties. However, they can only exercise their powers and make decisions as directed by the beneficiaries. The beneficiaries are the individuals or entities identified in the agreement who hold equitable or beneficial interests in the trust assets. As the ultimate decision-makers, they have the authority to direct the trustees in matters concerning property management, acquisitions, sales, leasing, and other related activities. This arrangement allows for a high degree of control and flexibility for the beneficiaries while providing the trustees with a legal framework to operate within. It is important to note that there may be different variations or modifications of the New Mexico Agreement and Declaration of Real Estate Business Trust based on specific requirements or provisions desired by the granter. The exact terms and conditions can be customized to meet the unique needs of the trust creator and beneficiaries. It is advisable for individuals interested in establishing such a trust to consult with legal professionals who specialize in real estate law and trust administration to ensure compliance with applicable regulations and to optimize the trust's potential benefits.The New Mexico Agreement and Declaration of Real Estate Business Trust is a legal document applicable in the state of New Mexico. It establishes the Massachusetts Nominee Realty Trust, which operates as a real estate business trust. This type of trust is operated by trustees who solely act according to the directions received from the beneficiaries. In the realm of real estate, trusts are commonly used for various purposes, such as holding and managing properties on behalf of beneficiaries, protecting assets, and facilitating efficient property management. The New Mexico Agreement and Declaration of Real Estate Business Trust enables individuals or entities to establish a trust that focuses on real estate investments and management. The agreement outlines the specifics of the trust, including the roles and responsibilities of the trustees and beneficiaries. The trustees, who are appointed by the trust's creator or granter, hold legal title to the trust assets, which primarily consist of real estate properties. However, they can only exercise their powers and make decisions as directed by the beneficiaries. The beneficiaries are the individuals or entities identified in the agreement who hold equitable or beneficial interests in the trust assets. As the ultimate decision-makers, they have the authority to direct the trustees in matters concerning property management, acquisitions, sales, leasing, and other related activities. This arrangement allows for a high degree of control and flexibility for the beneficiaries while providing the trustees with a legal framework to operate within. It is important to note that there may be different variations or modifications of the New Mexico Agreement and Declaration of Real Estate Business Trust based on specific requirements or provisions desired by the granter. The exact terms and conditions can be customized to meet the unique needs of the trust creator and beneficiaries. It is advisable for individuals interested in establishing such a trust to consult with legal professionals who specialize in real estate law and trust administration to ensure compliance with applicable regulations and to optimize the trust's potential benefits.
