Declaration of Nominee Trust

_______________, referred to as the SETTLOR, hereby declares that any and all property and interests in property transferred to him as Trustee under this agreement (“the Trust Estate”) shall be held in trust solely for the benefit of ________________, the beneficiaries of this Trust. The term “Trustee,” as used herein, refers to the person or persons named in this document and any successors serving as Trustee. All rights, powers, and responsibilities granted herein to the Trustee shall be exercised according to the terms of this trust.

A. BENEFICIARIES

The term “Beneficiaries” shall mean the individual(s) listed in the current Schedule of Beneficial Interests filed with the Trustee or as updated by a revised Schedule of Beneficial Interests executed and submitted to the Trustee. The Trustee is not obligated to acknowledge any assignment or transfer of beneficial interest unless formally notified and provided with an updated Schedule. A Trustee may also be a beneficiary and retain all rights of a beneficiary without conflict.

B. DUTIES OF TRUSTEE

The Trustee shall hold the principal of the Trust for the benefit of the beneficiaries and shall promptly distribute any income earned from the Trust Estate to the beneficiaries in accordance with their respective interests.

C. POWERS OF THE TRUSTEE

The Trustee shall not act regarding the Trust Estate unless expressly directed by the beneficiaries. Upon such direction, a Trustee may:

(a)

Acquire, hold, exchange, partition, sell (privately or publicly), mortgage, pledge, encumber, or dispose of any portion of the Trust Estate, and execute any necessary documents including deeds, promissory notes, or mortgages.

(b)

Lease or sublease any portion of the Trust Estate on terms deemed appropriate by the Trustee.

(c)

Contest or settle claims related to the Trust Estate.
Any instruments executed under these directions may impose obligations extending beyond the Trust’s termination. A Trustee shall not be required to undertake any act that may expose them to personal liability unless they are indemnified to their satisfaction. Any third party dealing with the Trustee shall be fully protected under Paragraph 7 of this Declaration.

D. TERMINATION

This Trust may be terminated at any time by one or more beneficiaries through written notice to the Trustee. The termination becomes effective only upon recording a certificate, signed and acknowledged by a Trustee, in the official records of ______ County, State of ________. Regardless, the Trust shall terminate twenty (20) years from the date of this Declaration or upon the maximum period allowed under the applicable Rule Against Perpetuities, whichever is longer. Upon termination, the Trustee shall distribute the Trust Estate—subject to any leases, encumbrances, or contracts—among the beneficiaries as tenants in common based on their respective interests.

E. RESIGNATION AND APPOINTMENT OF SUCCESSOR TRUSTEES

A Trustee may resign through a written, acknowledged instrument recorded as described in Paragraph D. Any successor or additional Trustees may be appointed, or a Trustee may be removed, by a written instrument signed by all beneficiaries. The instrument or a certificate signed by a Trustee naming the appointee or removed Trustee must be recorded. Acceptance by the new Trustee must also be recorded. Upon such appointment, title to the Trust Estate automatically vests in the new Trustee jointly with any remaining Trustees. All Trustees shall hold equal rights and authority as if originally named. No Trustee shall be required to post bond.

F. COURT SUPERVISION

This Trust shall not be subject to court administration or oversight.

G. AMENDMENT

This Declaration may be amended by a written instrument signed by all beneficiaries and acknowledged by at least one. Such amendment, or a certificate by any Trustee detailing the amendment, must be recorded with the Registry before taking effect for any third party lacking actual notice.

H. TRUSTEE LIABILITY; RELIANCE OF PURCHASERS AND OTHERS

No Trustee shall be liable for actions or omissions taken in good faith, except for willful breach of trust. No court approval shall be required for the validity of transactions entered by the Trustee. Third parties need not verify the application of funds or compliance with trust provisions. All documents and actions by a publicly recorded Trustee shall be deemed legally binding, authorized by the beneficiaries, and enforceable. Any person dealing with the Trust Estate may rely solely on certificates signed by any listed Trustee regarding Trustee identity, authority, and the existence or nonexistence of facts material to the trust’s administration.

I. NO PERSONAL LIABILITY

Neither the Trustee nor any beneficiary shall be held personally liable for obligations undertaken on behalf of the Trust. Any party dealing with the Trustee shall look exclusively to the Trust Estate for satisfaction of any claims.

J. DIVISION AMONG TRUSTEES

If multiple Trustees are serving and a dispute arises, a majority vote shall control. If the Trustees are equally divided, the vote of the longest-serving Trustee shall be final.

K. APPLICABLE LAW

This Trust shall be governed by and construed under the laws of the State of ________.

Dated: _______________________

Trustee

STATE OF _________
COUNTY OF _________

________________, being duly sworn, affirms that they executed this instrument for the purposes stated herein.

Notary Public
My Commission Expires: ___________________

How to Use This Sample Format

This section is provided to guide your use of the sample document above. It represents a standard format for a declaration of a nominee trust. You are encouraged to customize it as necessary to suit your specific situation.

Make multiple copies of the completed and signed trust. One copy should be filed with the relevant registry of deeds, as applicable. Retain another copy with your transaction or estate planning files.