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.
Puerto Rico Agreement and Declaration of Real Estate Business Trust — Massachusetts Nominee RealtThusus— - Trustees to Act only as Directed by Beneficiaries is a legal document that outlines the terms and conditions of a real estate business trust in Puerto Rico and the state of Massachusetts. This type of trust is designed to provide a structure for managing real estate assets and ensuring that the trustees act only as directed by the beneficiaries. The Puerto Rico Agreement and Declaration of Real Estate Business Trust — Massachusetts Nominee Realty Trust includes various important provisions and clauses. These may include the identification of the trust property, the appointment of trustees, the rights and responsibilities of the beneficiaries, the powers and limitations of the trustees, and the procedures for making decisions and taking actions related to the trust. The agreement ensures that the trustees are obligated to act in the best interest of the beneficiaries and to follow their instructions. The beneficiaries have the authority to direct the trustees on matters such as property management, leasing, sales, or investments. This type of trust allows beneficiaries to have direct control over the trust assets and decision-making process. There are different types of Puerto Rico Agreement and Declaration of Real Estate Business Trust — Massachusetts Nominee Realty Trust based on specific variations in the trust structure and purpose. These may include: 1. Residential Real Estate Business Trust: This type of trust is established for the management and operation of residential properties, such as single-family homes, apartments, or condominiums. 2. Commercial Real Estate Business Trust: This trust is created to manage and operate commercial properties, including retail spaces, office buildings, industrial properties, or shopping centers. 3. Mixed-Use Real Estate Business Trust: This trust combines both residential and commercial properties in its portfolio. It allows for the management and operation of properties that serve a combination of residential and commercial purposes. 4. Vacation Rental Real Estate Business Trust: This trust is specifically designed for managing vacation rental properties, including vacation homes, condos, or timeshares. By implementing the Puerto Rico Agreement and Declaration of Real Estate Business Trust — Massachusetts Nominee Realty Trust, beneficiaries can have peace of mind knowing that their real estate assets are managed professionally and in accordance with their preferences and instructions.
