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 Wyoming Agreement and Declaration of Real Estate Business Trust is a legal document that establishes the structure and guidelines for a Massachusetts Nominee Realty Trust. This type of trust is commonly used in the real estate industry to hold and manage properties on behalf of beneficiaries. The main characteristic of this trust is that the trustees can only act in accordance with the directions given by the beneficiaries. This means that the trustees have limited decision-making power and must seek guidance from the beneficiaries before carrying out any actions related to the trust's assets. The Wyoming Agreement and Declaration of Real Estate Business Trust provides a clear framework for the trust's operations, including the roles and responsibilities of the trustees and beneficiaries, the process for making decisions, and the distribution of income and assets. Some specific types of Wyoming Agreement and Declaration of Real Estate Business Trust that fall under this category include: 1. Revocable Living Trust: This type of trust allows the settler (the person who establishes the trust) to make changes or revoke the trust during their lifetime. It offers flexibility and control over the trust's assets. 2. Irrevocable Trust: Unlike a revocable living trust, an irrevocable trust cannot be easily modified or revoked. Once the assets are transferred into the trust, they are considered separate from the settler's estate, providing potential tax benefits and asset protection. 3. Land Trust: A land trust is a type of real estate business trust used specifically for holding and managing real property. It offers privacy and anonymity for the beneficiaries, as the trust's name appears on public records instead of individual names. 4. Family Trust: This type of trust is created to hold and manage assets for the benefit of family members. It can provide estate planning advantages, asset protection, and continuity of wealth for future generations. 5. Business Trust: A business trust is a trust created for the purpose of conducting commercial activities. It allows for the separation of ownership and management, making it a popular choice for real estate investment and development ventures. In conclusion, the Wyoming Agreement and Declaration of Real Estate Business Trust is a legal document that outlines the framework for a Massachusetts Nominee Realty Trust, where the trustees can only act as directed by the beneficiaries. Different types of this trust include revocable living trusts, irrevocable trusts, land trusts, family trusts, and business trusts. These trusts serve various purposes in the real estate industry and provide benefits such as asset protection, privacy, and tax advantages.
