The Bank intends to organize ***** Trust, a Massachusetts Business Trust (MBT), whose common transferable securities will be owned by a nominal U. While commercial trusts are sometimes referred to as Massachusetts trusts, they are not limited to this state. In Massachusetts, commercial trusts are subject to personal income tax and are taxed as individuals because they do not enjoy any franchise granted by the Legislature. Trust books and records will be kept outside of Massachusetts and your trustee will be a non-Massachusetts trustee. A Massachusetts business trust is an association in which one or more trustees own and manage property for the benefit of beneficiaries, who own transferable “shares” i.e.
certificates of participation. This report verifies the name of the company for which you have a trust, the primary location of your company, and how many issues of certificates of participation or outstanding shares in your trust, as well as the names and addresses of all your trustees. Additionally, trusts cannot have the same name as any existing Massachusetts corporation, firm, association, or individual. The commercial trust attorneys at Calabrese Law Associates are prepared to help you draft the legal contracts required for your trust agreement. Therefore, as long as the beneficiary shareholders of the trust do not participate in the business management of the trust, they will not be personally liable for the debts and obligations of the business trust.
The only connection trusts will have with Massachusetts is that they will file their respective trust instruments with the Massachusetts Secretary of State, as required by G. A business trust is a legal relationship through which trustees obtain authority to manage the assets of a beneficiary. The Secretary of State, the Director of Licensing and the Department of Revenue of the State of Washington are authorized and ordered to prescribe binding rules and regulations applicable to such Massachusetts trusts in accordance with this chapter. The business will be maintained and managed for the benefit of individuals who hold transferable certificates issued by trustees showing the shares into which the beneficiary interest in the property is divided. The activities of the Trust and Trust Fund (the Trusts) are limited to issuing securities and common securities and investing the proceeds of sales of their securities in other securities or liabilities and engaging in incidental activities, all of which are conducted outside of Massachusetts.
The trust agreement should clarify what will happen to each person's financial investment in the company.