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 South Dakota Agreement and Declaration of Real Estate Business Trust is a legal document that outlines the specific terms and conditions for the establishment and operation of a real estate business trust in the state of South Dakota. This trust is commonly known as the Massachusetts Nominee Realty Trust, where trustees act solely under the direction and instruction of the beneficiaries. The purpose of this agreement is to ensure a clear understanding between the trustees and beneficiaries, outlining their roles, responsibilities, and the limitations of their authority. The Massachusetts Nominee Realty Trust emphasizes that trustees are required to act only as directed by the beneficiaries, providing a level of control and guidance over the trust's affairs. Key provisions included in the South Dakota Agreement and Declaration of Real Estate Business Trust may consist of: 1. Identification of the trustees: The agreement names the trustees who will be responsible for managing the operations and assets of the trust. 2. Beneficiaries' powers and directives: The document specifies the powers and authority vested in the beneficiaries to direct and instruct the trustees in various decision-making aspects, such as property acquisition, management, leasing, and disposition. 3. Limitations on trustee actions: It stipulates that the trustees must act exclusively in accordance with the directives provided by the beneficiaries, preventing them from making independent decisions or entering into agreements without proper beneficiary authorization. 4. Trustee's fiduciary duties: The agreement highlights the trustees' obligation to act in the best interests of the beneficiaries, ensuring their actions align with the trust's objectives and goals. 5. Distribution of income and expenses: This section clarifies the allocation of income generated by the trust's real estate assets and the responsibility for covering expenses associated with the trust's activities. 6. Term and termination: The agreement defines the duration of the trust and outlines the conditions under which it may be terminated, providing clarity on the process and implications. It is important to note that while the South Dakota Agreement and Declaration of Real Estate Business Trust — Massachusetts Nominee RealtThusus— - Trustees to Act only as Directed by Beneficiaries is a standard format, variations may exist based on specific requirements or circumstances. For example, different types of beneficiaries may be involved, such as individuals, corporations, or organizations, each with unique interests and preferences. Additionally, amendments and addendums may also be appended to the agreement as necessary, allowing for modifications to accommodate changing circumstances or mandates.The South Dakota Agreement and Declaration of Real Estate Business Trust is a legal document that outlines the specific terms and conditions for the establishment and operation of a real estate business trust in the state of South Dakota. This trust is commonly known as the Massachusetts Nominee Realty Trust, where trustees act solely under the direction and instruction of the beneficiaries. The purpose of this agreement is to ensure a clear understanding between the trustees and beneficiaries, outlining their roles, responsibilities, and the limitations of their authority. The Massachusetts Nominee Realty Trust emphasizes that trustees are required to act only as directed by the beneficiaries, providing a level of control and guidance over the trust's affairs. Key provisions included in the South Dakota Agreement and Declaration of Real Estate Business Trust may consist of: 1. Identification of the trustees: The agreement names the trustees who will be responsible for managing the operations and assets of the trust. 2. Beneficiaries' powers and directives: The document specifies the powers and authority vested in the beneficiaries to direct and instruct the trustees in various decision-making aspects, such as property acquisition, management, leasing, and disposition. 3. Limitations on trustee actions: It stipulates that the trustees must act exclusively in accordance with the directives provided by the beneficiaries, preventing them from making independent decisions or entering into agreements without proper beneficiary authorization. 4. Trustee's fiduciary duties: The agreement highlights the trustees' obligation to act in the best interests of the beneficiaries, ensuring their actions align with the trust's objectives and goals. 5. Distribution of income and expenses: This section clarifies the allocation of income generated by the trust's real estate assets and the responsibility for covering expenses associated with the trust's activities. 6. Term and termination: The agreement defines the duration of the trust and outlines the conditions under which it may be terminated, providing clarity on the process and implications. It is important to note that while the South Dakota Agreement and Declaration of Real Estate Business Trust — Massachusetts Nominee RealtThusus— - Trustees to Act only as Directed by Beneficiaries is a standard format, variations may exist based on specific requirements or circumstances. For example, different types of beneficiaries may be involved, such as individuals, corporations, or organizations, each with unique interests and preferences. Additionally, amendments and addendums may also be appended to the agreement as necessary, allowing for modifications to accommodate changing circumstances or mandates.
