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 King Washington Agreement and Declaration of Real Estate Business Trust, specifically the Massachusetts Nominee Realty Trust, addresses the unique structure and operation of a real estate business trust in Massachusetts. This legal document outlines the roles and responsibilities of trustees, who are obligated to act strictly according to the directions provided by the beneficiaries. Key elements covered in the King Washington Agreement include: 1. Real Estate Business Trust Structure: The document details the establishment of a real estate business trust under the laws of Massachusetts. It lays out the fiduciary relationship between the trustees and beneficiaries of the trust. 2. Trustees' Duties: The agreement specifies that trustees have a duty to administer the trust solely according to the directions of the beneficiaries. They are not authorized to take any action that is not explicitly directed by the beneficiaries, ensuring their limited role in decision-making. 3. Beneficiaries' Powers: The beneficiaries, as owners, possess the authority to direct and control the real estate business trust. They have the power to make decisions concerning property acquisitions, sales, leases, and any other significant actions related to the trust assets. 4. Trust Property: The King Washington Agreement describes the initial properties or assets transferred into the trust for the purpose of conducting the real estate business. Any additional properties acquired by the trust in the future also become part of the trust's assets. 5. Dissolution of Trust: In the event of the trust's dissolution, the agreement specifies the mechanisms for distributing the trust's assets among the beneficiaries in proportion to their ownership interests. Different types or variations of the King Washington Agreement and Declaration of Real Estate Business Trust — Massachusetts Nominee Realty Trust may exist depending on the specific provisions and modifications included. Some common variations may include agreements tailored for commercial real estate trusts, residential real estate trusts, mixed-use real estate trusts, or certain industry-specific real estate trusts. Each variation would outline the unique rules, guidelines, and considerations specific to the type of trust in question.The King Washington Agreement and Declaration of Real Estate Business Trust, specifically the Massachusetts Nominee Realty Trust, addresses the unique structure and operation of a real estate business trust in Massachusetts. This legal document outlines the roles and responsibilities of trustees, who are obligated to act strictly according to the directions provided by the beneficiaries. Key elements covered in the King Washington Agreement include: 1. Real Estate Business Trust Structure: The document details the establishment of a real estate business trust under the laws of Massachusetts. It lays out the fiduciary relationship between the trustees and beneficiaries of the trust. 2. Trustees' Duties: The agreement specifies that trustees have a duty to administer the trust solely according to the directions of the beneficiaries. They are not authorized to take any action that is not explicitly directed by the beneficiaries, ensuring their limited role in decision-making. 3. Beneficiaries' Powers: The beneficiaries, as owners, possess the authority to direct and control the real estate business trust. They have the power to make decisions concerning property acquisitions, sales, leases, and any other significant actions related to the trust assets. 4. Trust Property: The King Washington Agreement describes the initial properties or assets transferred into the trust for the purpose of conducting the real estate business. Any additional properties acquired by the trust in the future also become part of the trust's assets. 5. Dissolution of Trust: In the event of the trust's dissolution, the agreement specifies the mechanisms for distributing the trust's assets among the beneficiaries in proportion to their ownership interests. Different types or variations of the King Washington Agreement and Declaration of Real Estate Business Trust — Massachusetts Nominee Realty Trust may exist depending on the specific provisions and modifications included. Some common variations may include agreements tailored for commercial real estate trusts, residential real estate trusts, mixed-use real estate trusts, or certain industry-specific real estate trusts. Each variation would outline the unique rules, guidelines, and considerations specific to the type of trust in question.
