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 Mecklenburg North Carolina Agreement and Declaration of Real Estate Business Trust, with a specific focus on the Massachusetts Nominee Realty Trust, deals with the formation and operation of a real estate trust in Mecklenburg County, North Carolina. This legal document outlines the responsibilities, rights, and obligations of the trustees and beneficiaries involved, emphasizing that the trustees are bound to act solely as directed by the beneficiaries. Here is a detailed description of this trust agreement and its key features: 1. Purpose: The Mecklenburg North Carolina Agreement and Declaration of Real Estate Business Trust — Massachusetts Nominee Realty Trust aims to establish a trust that primarily engages in real estate business activities within Mecklenburg County, NC. The trust agreement clarifies that the trustees must adhere to the instructions and directives provided by the beneficiaries regarding all trust matters. 2. Trust Structure: The trust is set up as a business entity, allowing for the acquisition, ownership, management, and sale of real estate properties. It operates under the legal framework and regulations of Mecklenburg County, North Carolina, and its specific provisions must comply with the state's trust laws. 3. Trustees: The document appoints one or more trustees, responsible for managing the trust's affairs, making investment decisions, and executing transactions pertaining to the trust's real estate holdings. However, unlike traditional trusts, the Mecklenburg North Carolina Agreement and Declaration highlights that the trustees can only act upon the directives provided by the beneficiaries. 4. Beneficiaries: The trust beneficiaries are the individuals or entities that hold a beneficial interest in the trust. They have the power to control and direct the trustees' actions in accordance with the provisions outlined in the trust agreement. The beneficiaries, acting collectively or individually, can issue instructions to the trustees regarding property management, leasing, sales, acquisitions, or any other matters related to the trust. 5. Powers and Authority: This agreement details the powers granted to the trustees and beneficiaries. The trustees have the authority to execute contracts, enter into agreements, lease properties, collect rent, and perform any necessary actions to fulfill their obligations. However, their exercise of such powers is strictly tied to the beneficiaries' instructions and direction. 6. Distribution of Income and Profits: The trust agreement must include provisions outlining how the income and profits generated from the trust's real estate activities will be distributed among the beneficiaries. The distribution can be based on a set percentage, according to the beneficiaries' ownership interests or any other agreed-upon method. 7. Termination and Amendment: The Mecklenburg North Carolina Agreement and Declaration allows for the termination or amendment of the trust under certain circumstances. This may occur upon the agreement of all beneficiaries or as provided by applicable state laws governing trusts. Different types of Mecklenburg North Carolina Agreement and Declaration of Real Estate Business Trust — Massachusetts Nominee Realty Trust may exist based on the specific terms and conditions tailored to the needs and preferences of the beneficiaries. It is essential to consult legal professionals with expertise in trust law to customize the trust agreement to meet the specific requirements of the beneficiaries and comply with relevant laws and regulations.The Mecklenburg North Carolina Agreement and Declaration of Real Estate Business Trust, with a specific focus on the Massachusetts Nominee Realty Trust, deals with the formation and operation of a real estate trust in Mecklenburg County, North Carolina. This legal document outlines the responsibilities, rights, and obligations of the trustees and beneficiaries involved, emphasizing that the trustees are bound to act solely as directed by the beneficiaries. Here is a detailed description of this trust agreement and its key features: 1. Purpose: The Mecklenburg North Carolina Agreement and Declaration of Real Estate Business Trust — Massachusetts Nominee Realty Trust aims to establish a trust that primarily engages in real estate business activities within Mecklenburg County, NC. The trust agreement clarifies that the trustees must adhere to the instructions and directives provided by the beneficiaries regarding all trust matters. 2. Trust Structure: The trust is set up as a business entity, allowing for the acquisition, ownership, management, and sale of real estate properties. It operates under the legal framework and regulations of Mecklenburg County, North Carolina, and its specific provisions must comply with the state's trust laws. 3. Trustees: The document appoints one or more trustees, responsible for managing the trust's affairs, making investment decisions, and executing transactions pertaining to the trust's real estate holdings. However, unlike traditional trusts, the Mecklenburg North Carolina Agreement and Declaration highlights that the trustees can only act upon the directives provided by the beneficiaries. 4. Beneficiaries: The trust beneficiaries are the individuals or entities that hold a beneficial interest in the trust. They have the power to control and direct the trustees' actions in accordance with the provisions outlined in the trust agreement. The beneficiaries, acting collectively or individually, can issue instructions to the trustees regarding property management, leasing, sales, acquisitions, or any other matters related to the trust. 5. Powers and Authority: This agreement details the powers granted to the trustees and beneficiaries. The trustees have the authority to execute contracts, enter into agreements, lease properties, collect rent, and perform any necessary actions to fulfill their obligations. However, their exercise of such powers is strictly tied to the beneficiaries' instructions and direction. 6. Distribution of Income and Profits: The trust agreement must include provisions outlining how the income and profits generated from the trust's real estate activities will be distributed among the beneficiaries. The distribution can be based on a set percentage, according to the beneficiaries' ownership interests or any other agreed-upon method. 7. Termination and Amendment: The Mecklenburg North Carolina Agreement and Declaration allows for the termination or amendment of the trust under certain circumstances. This may occur upon the agreement of all beneficiaries or as provided by applicable state laws governing trusts. Different types of Mecklenburg North Carolina Agreement and Declaration of Real Estate Business Trust — Massachusetts Nominee Realty Trust may exist based on the specific terms and conditions tailored to the needs and preferences of the beneficiaries. It is essential to consult legal professionals with expertise in trust law to customize the trust agreement to meet the specific requirements of the beneficiaries and comply with relevant laws and regulations.
