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 York Agreement and Declaration of Real Estate Business Trust is a legal document that outlines the establishment and operation of a real estate business trust in New York, specifically under the Massachusetts Nominee Realty Trust structure. This agreement specifies that the designated trustees are only permitted to act according to the directions provided by the beneficiaries of the trust. The New York Agreement and Declaration of Real Estate Business Trust is an essential component when setting up a Massachusetts Nominee Realty Trust in New York. It serves to protect the interests of the beneficiaries and provides a clear framework for trust administration. Some key keywords relevant to this topic include: 1. New York Agreement: This refers to the legal agreement governing the establishment and operation of a real estate business trust in New York. 2. Declaration of Real Estate Business Trust: It is a formal declaration stating the purpose and nature of the trust, often outlining specific trust provisions and conditions. 3. Massachusetts Nominee Realty Trust: This refers to a specific type of real estate trust structure commonly used in New York. It provides benefits like privacy, ease of ownership transfer, and limited liability protection. 4. Trustees: These are the individuals appointed to manage and oversee the real estate trust under the agreement terms. 5. Beneficiaries: They are the individuals or entities who are entitled to receive benefits from the trust, such as profits or income generated by the real estate properties. 6. Trust Administration: This involves the day-to-day management and decision-making tasks carried out by the designated trustees acting solely based on the instructions from beneficiaries. 7. Real Estate Business Trust: This term specifies the nature of the trust, indicating that it primarily deals with real estate assets or investments. 8. Trust Provisions: These are the specific terms, rules, and guidelines outlined within the agreement, governing the operation, distribution, and management of the trust's assets. 9. Trust Set-up Process: This involves the steps and procedures required to establish the trust, including drafting and executing the necessary legal documents, like the New York Agreement and Declaration of Real Estate Business Trust. While there might not be specific types of New York Agreement and Declaration of Real Estate Business Trust, variations may exist in the trust's specific provisions and conditions, which can be tailored to the unique needs and objectives of the trust's beneficiaries.The New York Agreement and Declaration of Real Estate Business Trust is a legal document that outlines the establishment and operation of a real estate business trust in New York, specifically under the Massachusetts Nominee Realty Trust structure. This agreement specifies that the designated trustees are only permitted to act according to the directions provided by the beneficiaries of the trust. The New York Agreement and Declaration of Real Estate Business Trust is an essential component when setting up a Massachusetts Nominee Realty Trust in New York. It serves to protect the interests of the beneficiaries and provides a clear framework for trust administration. Some key keywords relevant to this topic include: 1. New York Agreement: This refers to the legal agreement governing the establishment and operation of a real estate business trust in New York. 2. Declaration of Real Estate Business Trust: It is a formal declaration stating the purpose and nature of the trust, often outlining specific trust provisions and conditions. 3. Massachusetts Nominee Realty Trust: This refers to a specific type of real estate trust structure commonly used in New York. It provides benefits like privacy, ease of ownership transfer, and limited liability protection. 4. Trustees: These are the individuals appointed to manage and oversee the real estate trust under the agreement terms. 5. Beneficiaries: They are the individuals or entities who are entitled to receive benefits from the trust, such as profits or income generated by the real estate properties. 6. Trust Administration: This involves the day-to-day management and decision-making tasks carried out by the designated trustees acting solely based on the instructions from beneficiaries. 7. Real Estate Business Trust: This term specifies the nature of the trust, indicating that it primarily deals with real estate assets or investments. 8. Trust Provisions: These are the specific terms, rules, and guidelines outlined within the agreement, governing the operation, distribution, and management of the trust's assets. 9. Trust Set-up Process: This involves the steps and procedures required to establish the trust, including drafting and executing the necessary legal documents, like the New York Agreement and Declaration of Real Estate Business Trust. While there might not be specific types of New York Agreement and Declaration of Real Estate Business Trust, variations may exist in the trust's specific provisions and conditions, which can be tailored to the unique needs and objectives of the trust's beneficiaries.
