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 Texas Agreement and Declaration of Real Estate Business Trust is a legally binding document that outlines the terms and conditions of a real estate business trust in the state of Texas. This trust agreement is specifically designed to provide clear guidelines for the management and operation of a real estate business trust, and it protects both the trustees and beneficiaries involved. In a Texas Agreement and Declaration of Real Estate Business Trust, the trustees are required to act based on the directions and instructions given by the beneficiaries. This means that they have a fiduciary duty to carry out the wishes and best interests of the beneficiaries in all matters related to the trust. The Massachusetts Nominee Realty Trust serves a similar purpose as the Texas Agreement and Declaration of Real Estate Business Trust but applies specifically to real estate business trusts operating in the state of Massachusetts. It provides a clear framework for the trustees to act only as directed by the beneficiaries, ensuring that the trust's affairs are handled in a manner that aligns with the beneficiaries' goals and objectives. There may be different types or variations of the Texas Agreement and Declaration of Real Estate Business Trust and the Massachusetts Nominee Realty Trust, tailored to specific circumstances or preferences. Some possible types include revocable trusts, irrevocable trusts, family trusts, charitable trusts, or land trusts. Each type may have unique provisions and requirements, catering to the specific needs of the trust and the parties involved. These types of trusts are commonly used in real estate investment scenarios, where multiple individuals or entities pool their resources to acquire and manage real estate properties. The trust structure offers benefits such as tax advantages, asset protection, centralized control, and ease of transferability. In summary, the Texas Agreement and Declaration of Real Estate Business Trust and the Massachusetts Nominee Realty Trust are legal documents that establish the terms of operation and management for real estate business trusts in the respective states. These trusts ensure that trustees act in accordance with the beneficiaries' instructions, with various types available to cater to specific circumstances.
