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 Wisconsin Agreement and Declaration of Real Estate Business Trust refers to a legal document that establishes a trust in the state of Wisconsin for real estate activities. Specifically, it pertains to the Massachusetts Nominee Realty Trust, which operates as a trust entity in the state of Massachusetts but is subject to the laws and regulations of Wisconsin when conducting business within its jurisdiction. This agreement outlines the roles and responsibilities of the trustees, who are appointed to manage the real estate assets held within the trust. A significant feature of this trust is that the trustees are mandated to act solely as directed by the beneficiaries. This means that the trustees must follow the instructions, requests, and decisions made by the beneficiaries regarding the handling and administration of the real estate business. One notable aspect of the Wisconsin Agreement and Declaration of Real Estate Business Trust is the flexibility it allows for customization. Various types of agreements and declarations can be created under this framework, depending on the specific requirements and preferences of the beneficiaries. For instance, there can be agreements that focus on particular types of real estate properties such as residential, commercial, or industrial. Alternatively, agreements can be tailored to different investment strategies, such as buying, leasing, developing, or selling properties. Another possible distinction among the types of Wisconsin Agreement and Declaration of Real Estate Business Trust is whether it is a revocable or irrevocable trust. A revocable trust allows the beneficiaries to modify or terminate the trust at any time, providing them with more flexibility and control over the assets. Conversely, an irrevocable trust typically cannot be altered or dissolved without the consent of all parties involved, providing more stability and long-term planning benefits. Furthermore, the agreement might specify the duration of the trust, whether it is for a fixed term or continues indefinitely. It can also outline the distribution of income and profits generated by the real estate business among the beneficiaries and establish procedures for dispute resolution, appointment of successor trustees, and any other relevant matters related to the trust's operation. In summary, the Wisconsin Agreement and Declaration of Real Estate Business Trust establishes a legal framework for managing real estate assets held within the Massachusetts Nominee Realty Trust while adhering to Wisconsin regulations. The agreement outlines the specific roles and responsibilities of trustees, who are required to act solely as directed by the beneficiaries. Different types of agreements can be created, focusing on specific property types, investment strategies, revocability, and duration of the trust, among other considerations.The Wisconsin Agreement and Declaration of Real Estate Business Trust refers to a legal document that establishes a trust in the state of Wisconsin for real estate activities. Specifically, it pertains to the Massachusetts Nominee Realty Trust, which operates as a trust entity in the state of Massachusetts but is subject to the laws and regulations of Wisconsin when conducting business within its jurisdiction. This agreement outlines the roles and responsibilities of the trustees, who are appointed to manage the real estate assets held within the trust. A significant feature of this trust is that the trustees are mandated to act solely as directed by the beneficiaries. This means that the trustees must follow the instructions, requests, and decisions made by the beneficiaries regarding the handling and administration of the real estate business. One notable aspect of the Wisconsin Agreement and Declaration of Real Estate Business Trust is the flexibility it allows for customization. Various types of agreements and declarations can be created under this framework, depending on the specific requirements and preferences of the beneficiaries. For instance, there can be agreements that focus on particular types of real estate properties such as residential, commercial, or industrial. Alternatively, agreements can be tailored to different investment strategies, such as buying, leasing, developing, or selling properties. Another possible distinction among the types of Wisconsin Agreement and Declaration of Real Estate Business Trust is whether it is a revocable or irrevocable trust. A revocable trust allows the beneficiaries to modify or terminate the trust at any time, providing them with more flexibility and control over the assets. Conversely, an irrevocable trust typically cannot be altered or dissolved without the consent of all parties involved, providing more stability and long-term planning benefits. Furthermore, the agreement might specify the duration of the trust, whether it is for a fixed term or continues indefinitely. It can also outline the distribution of income and profits generated by the real estate business among the beneficiaries and establish procedures for dispute resolution, appointment of successor trustees, and any other relevant matters related to the trust's operation. In summary, the Wisconsin Agreement and Declaration of Real Estate Business Trust establishes a legal framework for managing real estate assets held within the Massachusetts Nominee Realty Trust while adhering to Wisconsin regulations. The agreement outlines the specific roles and responsibilities of trustees, who are required to act solely as directed by the beneficiaries. Different types of agreements can be created, focusing on specific property types, investment strategies, revocability, and duration of the trust, among other considerations.
