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 West Virginia Agreement and Declaration of Real Estate Business Trust is a legal document that outlines the terms and conditions of a trust established for real estate business purposes in the state of West Virginia. It specifically refers to the Massachusetts Nominee Realty Trust structure and mandates that the nominated trustees must act solely as directed by the beneficiaries. This trust agreement serves as a protective mechanism for the beneficiaries of the trust by ensuring that the trustees act in the best interest of the real estate business and follow the directives given by the beneficiaries. It highlights the importance of the beneficiaries' decision-making authority and states that the trustees are bound to carry out their instructions. The West Virginia Agreement and Declaration of Real Estate Business Trust — Massachusetts Nominee RealtThusus— - Trustees to Act only as Directed by Beneficiaries can be categorized into various types based on specific terms, objectives, or conditions. Some different types of this trust agreement may include: 1. Irrevocable Real Estate Business Trust: This type of trust cannot be altered, modified, or revoked once it is established. It provides greater security and protection for the beneficiaries by ensuring that the trust's assets remain intact according to their directions without any possibility of changes. 2. Revocable Real Estate Business Trust: In contrast to the irrevocable type, a revocable trust allows for modifications, amendments, or even termination at any point by the trust or. This type of trust provides more flexibility for the beneficiaries and the possibility of adapting to changing circumstances or investment opportunities. 3. Fixed-Term Real Estate Business Trust: This type of trust is established for a specific duration and automatically terminates at the end of the predetermined term. It may be created with a particular real estate project or investment plan in mind, and the trustees are solely responsible for executing the defined objectives within the given time frame. 4. Discretionary Real Estate Business Trust: A discretionary trust grants the trustees the authority to make decisions regarding the real estate business operations and distributions to the beneficiaries. While the trustees still act as per the directions of the beneficiaries, they have some flexibility to exercise their judgment and allocate resources or profits based on what they deem most appropriate. The West Virginia Agreement and Declaration of Real Estate Business Trust — Massachusetts Nominee RealtThusus— - Trustees to Act only as Directed by Beneficiaries is an essential legal framework that ensures transparency, accountability, and the protection of the beneficiaries' interests. It establishes clear guidelines for the trustees to follow and safeguards the real estate business assets and operations for the ultimate benefit of those entitled to the trust's proceeds.The West Virginia Agreement and Declaration of Real Estate Business Trust is a legal document that outlines the terms and conditions of a trust established for real estate business purposes in the state of West Virginia. It specifically refers to the Massachusetts Nominee Realty Trust structure and mandates that the nominated trustees must act solely as directed by the beneficiaries. This trust agreement serves as a protective mechanism for the beneficiaries of the trust by ensuring that the trustees act in the best interest of the real estate business and follow the directives given by the beneficiaries. It highlights the importance of the beneficiaries' decision-making authority and states that the trustees are bound to carry out their instructions. The West Virginia Agreement and Declaration of Real Estate Business Trust — Massachusetts Nominee RealtThusus— - Trustees to Act only as Directed by Beneficiaries can be categorized into various types based on specific terms, objectives, or conditions. Some different types of this trust agreement may include: 1. Irrevocable Real Estate Business Trust: This type of trust cannot be altered, modified, or revoked once it is established. It provides greater security and protection for the beneficiaries by ensuring that the trust's assets remain intact according to their directions without any possibility of changes. 2. Revocable Real Estate Business Trust: In contrast to the irrevocable type, a revocable trust allows for modifications, amendments, or even termination at any point by the trust or. This type of trust provides more flexibility for the beneficiaries and the possibility of adapting to changing circumstances or investment opportunities. 3. Fixed-Term Real Estate Business Trust: This type of trust is established for a specific duration and automatically terminates at the end of the predetermined term. It may be created with a particular real estate project or investment plan in mind, and the trustees are solely responsible for executing the defined objectives within the given time frame. 4. Discretionary Real Estate Business Trust: A discretionary trust grants the trustees the authority to make decisions regarding the real estate business operations and distributions to the beneficiaries. While the trustees still act as per the directions of the beneficiaries, they have some flexibility to exercise their judgment and allocate resources or profits based on what they deem most appropriate. The West Virginia Agreement and Declaration of Real Estate Business Trust — Massachusetts Nominee RealtThusus— - Trustees to Act only as Directed by Beneficiaries is an essential legal framework that ensures transparency, accountability, and the protection of the beneficiaries' interests. It establishes clear guidelines for the trustees to follow and safeguards the real estate business assets and operations for the ultimate benefit of those entitled to the trust's proceeds.
