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 Dallas Texas Agreement and Declaration of Real Estate Business Trust — Massachusetts Nominee RealtThusus— - Trustees to Act only as Directed by Beneficiaries is a legally binding document outlining the specific roles, responsibilities, and limitations of trustees and beneficiaries involved in a real estate business trust in the Dallas, Texas area. With the primary aim of protecting the interests of the beneficiaries, this agreement sets forth the guidelines for the trustees to act solely based on the direction provided by the beneficiaries. This particular type of trust agreement is designed to ensure transparency and collaboration between the trustees and beneficiaries, especially in the context of real estate transactions. By clearly stating that trustees are obligated to act only under the instructions of the beneficiaries, it aims to safeguard the beneficiaries' interests, including their financial assets, properties, and other vested rights. Some key elements covered in the Dallas Texas Agreement and Declaration of Real Estate Business Trust may include: 1. Identification of the Trust: The agreement will outline the official name of the trust, such as the "Dallas Texas Agreement and Declaration of Real Estate Business Trust — Massachusetts Nominee Realty Trust." 2. Parties Involved: It will identify the trustees responsible for managing the trust and carrying out the wishes of the beneficiaries. Additionally, it will name the beneficiaries who hold the authority to direct the trustees' actions. 3. Trustees' Duties and Limitations: The agreement will provide a detailed description of the trustees' responsibilities and stipulate that they must act solely in accordance with the beneficiaries' instructions. It may also clarify any limitations on the trustees' discretionary powers, emphasizing their fiduciary duty towards the beneficiaries. 4. Beneficiaries' Powers and Rights: The agreement will outline the beneficiaries' authority to direct and control the trust's operations, including decisions related to property acquisitions, sales, leases, financing, and other relevant matters. 5. Decision-Making Procedures: The document may detail the process for beneficiaries to provide instructions to the trustees, including the requirement for written notices, majority consent, or other decision-making mechanisms. 6. Distribution of Income and Assets: The agreement may specify how income generated by the trust's real estate holdings is to be distributed among the beneficiaries. It may also outline procedures for distributing trust assets upon termination or expiration of the trust. It is important to note that the Dallas Texas Agreement and Declaration of Real Estate Business Trust — Massachusetts Nominee Realty Trust may have variations or customizations depending on the specific needs and preferences of the parties involved.The Dallas Texas Agreement and Declaration of Real Estate Business Trust — Massachusetts Nominee RealtThusus— - Trustees to Act only as Directed by Beneficiaries is a legally binding document outlining the specific roles, responsibilities, and limitations of trustees and beneficiaries involved in a real estate business trust in the Dallas, Texas area. With the primary aim of protecting the interests of the beneficiaries, this agreement sets forth the guidelines for the trustees to act solely based on the direction provided by the beneficiaries. This particular type of trust agreement is designed to ensure transparency and collaboration between the trustees and beneficiaries, especially in the context of real estate transactions. By clearly stating that trustees are obligated to act only under the instructions of the beneficiaries, it aims to safeguard the beneficiaries' interests, including their financial assets, properties, and other vested rights. Some key elements covered in the Dallas Texas Agreement and Declaration of Real Estate Business Trust may include: 1. Identification of the Trust: The agreement will outline the official name of the trust, such as the "Dallas Texas Agreement and Declaration of Real Estate Business Trust — Massachusetts Nominee Realty Trust." 2. Parties Involved: It will identify the trustees responsible for managing the trust and carrying out the wishes of the beneficiaries. Additionally, it will name the beneficiaries who hold the authority to direct the trustees' actions. 3. Trustees' Duties and Limitations: The agreement will provide a detailed description of the trustees' responsibilities and stipulate that they must act solely in accordance with the beneficiaries' instructions. It may also clarify any limitations on the trustees' discretionary powers, emphasizing their fiduciary duty towards the beneficiaries. 4. Beneficiaries' Powers and Rights: The agreement will outline the beneficiaries' authority to direct and control the trust's operations, including decisions related to property acquisitions, sales, leases, financing, and other relevant matters. 5. Decision-Making Procedures: The document may detail the process for beneficiaries to provide instructions to the trustees, including the requirement for written notices, majority consent, or other decision-making mechanisms. 6. Distribution of Income and Assets: The agreement may specify how income generated by the trust's real estate holdings is to be distributed among the beneficiaries. It may also outline procedures for distributing trust assets upon termination or expiration of the trust. It is important to note that the Dallas Texas Agreement and Declaration of Real Estate Business Trust — Massachusetts Nominee Realty Trust may have variations or customizations depending on the specific needs and preferences of the parties involved.
