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 Oregon Agreement and Declaration of Real Estate Business Trust, also known as the Massachusetts Nominee Realty Trust, is a legal document that establishes a business trust for real estate purposes in Oregon. This trust operates under the condition that the trustees are only allowed to act in accordance with the directives given by the beneficiaries. The Oregon Agreement and Declaration of Real Estate Business Trust has several types, each catering to specific needs and situations within the real estate industry. Below are some different variations of this trust: 1. Residential Trust: This type of trust is specifically designed for residential real estate purposes. It allows beneficiaries to direct trustees on matters related to residential properties, such as renting, leasing, or selling residential units. 2. Commercial Trust: For those dealing with commercial real estate ventures, the Commercial Trust variant of the Oregon Agreement and Declaration of Real Estate Business Trust can provide a framework to conduct business activities. Trustees act solely on the instructions of beneficiaries, who may direct them on matters like lease negotiations, property management, or acquisition of commercial properties. 3. Investment Trust: An Investment Trust under the Oregon Agreement and Declaration of Real Estate Business Trust enables beneficiaries to engage in real estate investment activities. Trustees can be directed to analyze property markets, identify potential investment opportunities, and carry out property purchases or sales to build a diversified real estate investment portfolio. 4. Land Development Trust: This type of trust caters to beneficiaries involved in land development projects. Trustees can be directed to oversee the various stages of land development, including obtaining permits, hiring contractors, and managing the project's finances. Beneficiaries maintain ultimate control over decisions related to the development process. 5. Multi-unit residential Trust: Designed specifically for multi-unit residential real estate, this trust specializes in managing properties like apartment buildings, condominiums, or townhouses. Beneficiaries direct trustees on matters such as tenant selection, rental rates, property maintenance, and other operational aspects. Overall, the Oregon Agreement and Declaration of Real Estate Business Trust — Massachusetts Nominee RealtThusus— - Trustees to Act only as Directed by Beneficiaries offers a flexible framework to conduct real estate transactions, ensuring that beneficiaries retain control while utilizing the expertise of trustees to achieve their real estate goals.
