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 Nevada Agreement and Declaration of Real Estate Business Trust refers to a legal document that establishes a business trust in the state of Nevada. Specifically, it highlights the responsibilities and roles of Massachusetts Nominee Realty Trust in acting as trustees who are bound to operate solely as directed by the beneficiaries. With this type of trust, the trustees have a fiduciary duty to follow the instructions and wishes of the beneficiaries when it comes to managing real estate assets and making business decisions. The purpose of such an agreement is to ensure that the trustees act in the best interests of the beneficiaries and execute their duties diligently. Keywords: Nevada Agreement, Declaration of Real Estate Business Trust, Massachusetts Nominee Realty Trust, trustees, beneficiaries, business trust, legal document, fiduciary duty, real estate assets, business decisions. Types of Nevada Agreement and Declaration of Real Estate Business Trust: 1. Revocable Trust: This type of trust allows the granter to modify or revoke the trust agreement during their lifetime. The beneficiaries have no vested interest until the terms of the trust are fulfilled. 2. Irrevocable Trust: In contrast to a revocable trust, an irrevocable trust cannot be altered or revoked without the consent of the beneficiaries. Once the assets are transferred into this trust, they are considered out of the granter's ownership and control. 3. Testamentary Trust: A testamentary trust is established through a person's will and comes into effect after the granter's death. It outlines how the real estate assets will be managed and distributed to the beneficiaries according to the granter's instructions. 4. Living Trust: Also known as an inter vivos trust, a living trust is created during the granter's lifetime. This type of trust allows the granter to manage their assets and designate beneficiaries while avoiding probate upon their death. 5. Charitable Trust: A charitable trust is created for philanthropic purposes to support charitable organizations or causes. The trustees of this trust must act in accordance with the intent and objectives of the trust, supporting the designated beneficiaries. 6. Special Needs Trust: This type of trust is designed to provide financial support for individuals with disabilities or special needs. The trustees manage the funds in a way that does not affect the beneficiary's eligibility for government assistance programs. Note: The above-mentioned types of trusts may or may not be applicable specifically to the Nevada Agreement and Declaration of Real Estate Business Trust — Massachusetts Nominee Realty Trust, as the specific nature and terms of the trust are determined by the agreement drafted between the parties involved.
