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 Harris Texas Agreement and Declaration of Real Estate Business Trust is a legal document that outlines the terms and conditions of a trust established in Harris County, Texas. This agreement specifically pertains to the Massachusetts Nominee Realty Trust, which operates as a real estate business trust. The primary feature of this trust is that the trustees are required to act only as directed by the beneficiaries. This agreement serves as a fundamental framework for the operations and management of the Massachusetts Nominee Realty Trust in Harris County. It governs various aspects, including property acquisition, management, leasing, and distribution of profits among the beneficiaries. Key provisions of the Harris Texas Agreement and Declaration of Real Estate Business Trust — Massachusetts Nominee RealtThusus— - Trustees to Act only as Directed by Beneficiaries may include: 1. Role and Responsibilities of Trustees: The agreement outlines the duties and responsibilities of the trustees. They are obliged to act exclusively according to the directions provided by the beneficiaries, ensuring transparent management of the trust's assets and affairs. 2. Beneficiaries' Rights and Powers: The document clarifies the rights and powers of the beneficiaries, including the ability to direct the trustees regarding property transactions, leasing decisions, and distribution of trust's income. 3. Property Acquisition and Management: The agreement sets guidelines for acquiring properties, managing rental units, and maintaining real estate assets. It may include provisions for property inspections, tenant relations, and updates on property value assessments. 4. Income Distribution: This aspect details how the proceeds from the real estate investments are to be distributed among the beneficiaries. It may specify the frequency and method of distribution, ensuring equitable allocation of income. 5. Dissolution and Termination: The agreement may outline the process for terminating the trust, including the distribution of remaining assets and the requirements for notifying beneficiaries and relevant authorities. Different variations or types of the Harris Texas Agreement and Declaration of Real Estate Business Trust — Massachusetts Nominee RealtThusus— - Trustees to Act only as Directed by Beneficiaries may exist depending on individual circumstances and specific trust structures. Variations might include modifications such as the inclusion of additional clauses or provisions tailored to meet the unique needs of the beneficiaries. It is essential to consult legal professionals familiar with relevant trust laws in Harris County, Texas, to ensure compliance and accuracy in drafting the Harris Texas Agreement and Declaration of Real Estate Business Trust — Massachusetts Nominee RealtThusus— - Trustees to Act only as Directed by Beneficiaries.The Harris Texas Agreement and Declaration of Real Estate Business Trust is a legal document that outlines the terms and conditions of a trust established in Harris County, Texas. This agreement specifically pertains to the Massachusetts Nominee Realty Trust, which operates as a real estate business trust. The primary feature of this trust is that the trustees are required to act only as directed by the beneficiaries. This agreement serves as a fundamental framework for the operations and management of the Massachusetts Nominee Realty Trust in Harris County. It governs various aspects, including property acquisition, management, leasing, and distribution of profits among the beneficiaries. Key provisions of the Harris Texas Agreement and Declaration of Real Estate Business Trust — Massachusetts Nominee RealtThusus— - Trustees to Act only as Directed by Beneficiaries may include: 1. Role and Responsibilities of Trustees: The agreement outlines the duties and responsibilities of the trustees. They are obliged to act exclusively according to the directions provided by the beneficiaries, ensuring transparent management of the trust's assets and affairs. 2. Beneficiaries' Rights and Powers: The document clarifies the rights and powers of the beneficiaries, including the ability to direct the trustees regarding property transactions, leasing decisions, and distribution of trust's income. 3. Property Acquisition and Management: The agreement sets guidelines for acquiring properties, managing rental units, and maintaining real estate assets. It may include provisions for property inspections, tenant relations, and updates on property value assessments. 4. Income Distribution: This aspect details how the proceeds from the real estate investments are to be distributed among the beneficiaries. It may specify the frequency and method of distribution, ensuring equitable allocation of income. 5. Dissolution and Termination: The agreement may outline the process for terminating the trust, including the distribution of remaining assets and the requirements for notifying beneficiaries and relevant authorities. Different variations or types of the Harris Texas Agreement and Declaration of Real Estate Business Trust — Massachusetts Nominee RealtThusus— - Trustees to Act only as Directed by Beneficiaries may exist depending on individual circumstances and specific trust structures. Variations might include modifications such as the inclusion of additional clauses or provisions tailored to meet the unique needs of the beneficiaries. It is essential to consult legal professionals familiar with relevant trust laws in Harris County, Texas, to ensure compliance and accuracy in drafting the Harris Texas Agreement and Declaration of Real Estate Business Trust — Massachusetts Nominee RealtThusus— - Trustees to Act only as Directed by Beneficiaries.
