{"id":188,"date":"2016-05-06T23:39:36","date_gmt":"2016-05-06T23:39:36","guid":{"rendered":"https:\/\/www.deeds.com\/articles\/?p=188"},"modified":"2024-04-25T23:21:32","modified_gmt":"2024-04-26T03:21:32","slug":"understanding-massachusetts-trusts-trustees-deeds-and-trustee-certificates","status":"publish","type":"post","link":"https:\/\/www.deeds.com\/articles\/understanding-massachusetts-trusts-trustees-deeds-and-trustee-certificates\/","title":{"rendered":"Understanding Massachusetts Trusts, Trustee\u2019s Deeds, and Trustee Certificates"},"content":{"rendered":"\n<p>A trust is a legally binding\narrangement whereby a settlor transfers title to another person, the trustee,\nfor the benefit of a third, the beneficiary. Trusts in Massachusetts are governed\nby the Massachusetts Uniform Trust Code, codified at G.L.c. 203E. &nbsp;<\/p>\n\n\n\n<!--more-->\n\n\n\n<p>There are two main classifications\nof trusts \u2013 testamentary trusts, which take effect upon the testator\u2019s death\n(the settlor of a testamentary trust is called the testator), and\nnon-testamentary trusts, which operate during the settlor\u2019s lifetime. This\narticle focuses on the latter.<\/p>\n\n\n\n<p>A trust must meet certain\nqualifications: that the settlor has the capacity and the intention of to\ncreate a trust; that the trustee has duties to perform; and that there is a\nclear beneficiary (G.L.c. 203E, \u00a7402). The terms of the trust, including the\nappointment of a trustee and designation of a beneficiary, are established in\nthe trust instrument, executed by the settlor.<\/p>\n\n\n\n<p>Prior to enacting G.L.c. 184, \u00a735, Massachusetts\nwas among the few states requiring the full trust document for trusts\ncontaining real property to be recorded. Because of this, some people adopted complicated\nstrategies to hide the identity of beneficiaries: \u201cThe objections primarily\nfocused on the fact that many non-testamentary trusts are estate planning\ntrusts and contain private financial information,\u201d which would be readily\nviewable information upon recording [1]. <\/p>\n\n\n\n<p>Along with G.L.c. 184, \u00a735, which governs\ntrustee\u2019s certificates for non-testamentary trusts, G.L.c. 203, \u00a72 was amended\nto allow the recording of a trustee\u2019s certificate in the place of the entire\ntrust instrument in the registry of deeds or office of the land court in the\ndistrict where the real property is situated. The trustee\u2019s certificate is\nrecorded either immediately upon the trust\u2019s acquisition of real property, or\nwhen the trustee acts upon the title [1]. <\/p>\n\n\n\n<p>One advantage of a non-testamentary\ntrust, then, is that the trust instrument is typically unrecorded, keeping the beneficiary\nnames undisclosed. In nominee trusts, for example, a schedule of beneficial\ninterests is filed with the original trustee and remains off-record.<\/p>\n\n\n\n<p>For trustees, the administration of\na trust may include conveyancing real property. Statutory optional fiduciary\npowers under G.L.c. 184B, \u00a72 include the power of a trustee \u201cto sell, exchange,\nor otherwise dispose of the property\u201d (G.L.c. 184B, \u00a72(1)(f)). Statutory\noptional fiduciary powers are not implied and must be explicitly granted by the\ntrust instrument (G.L.c. 184B, \u00a72). Purchasers receiving title from trustees\nare protected under G.L.c. 183, \u00a734, in addition to the trustee\u2019s certificate.<\/p>\n\n\n\n<p>The Real Estate Bar Association of\nMassachusetts (REBA) Title Standard 33 also addresses conveyances of real\nproperty made by trustees. The Title Standard states that \u201ctitle derived from a\nconveyance \u2026 by the trustee or trustees of record of a non-testamentary trust\nis binding on the trustee(s) and the trust in favor of a purchaser\u201d when \u201ca\ntrustee\u2019s certificate conforming to the requirements of M.G.L. c. 184, \u00a735\u201d is\nrecorded [2]. The REBA title standard encompasses all non-testamentary trusts,\nincluding nominee trusts.<\/p>\n\n\n\n<p>To convey property, trustees use instruments\ncalled trustee\u2019s deeds, which take their name from the granting party (trustee)\nrather than the type of warranty of title the deed carries, as in quitclaim\ndeeds or warranty deeds. Trustee\u2019s deeds in the Commonwealth of Massachusetts\ncarry \u201cquitclaim covenants,\u201d guaranteeing title against defects during the\ngrantor\u2019s ownership of the property only.<\/p>\n\n\n\n<p>Apart from naming the acting\ntrustee, the trustee\u2019s deed gives the name and date of the trust that the\ntrustee represents. The trustee\u2019s power to convey is confirmed by a reference\nto the recorded trustee\u2019s certificate. All documents affecting real property\nrequire a legal description of the subject property, as well as a reference to\nthe previous instrument from which the grantor obtained title (see G.L.c. 184,\n\u00a725(3) for information on indefinite references involving trustees). <\/p>\n\n\n\n<p>The trustee\u2019s deed must be signed\nby all acting trustees in the presence of a notary public before it is\nrecorded. Be aware that some counties in Massachusetts have multiple recording\ndistricts.<\/p>\n\n\n\n<p>Note that conveyances affecting registered land in Massachusetts are required to go through the land court. The land court is a system of official registration whereby the Commonwealth of Massachusetts guarantees good standing of title; documents affecting registered land must adhere to strict requirements before they are accepted, as opposed to recorded land. In the regular system of recording, documents are accepted whether or not there is good standing of title, as long as basic recording requirements are met.<\/p>\n\n\n\n<p class=\"has-medium-font-size\"><a href=\"https:\/\/www.deeds.com\/forms\/massachusetts\/\">View Available Massachusetts Real Estate Deed Forms<\/a><\/p>\n\n\n\n<p>Speak to a lawyer with any\nquestions regarding trusts in Massachusetts, trustee\u2019s deeds, or trustee\u2019s\ncertificates, as each situation is unique and trust law is complex.<\/p>\n\n\n\n<p class=\"has-small-font-size\">Cited:<\/p>\n\n\n\n<p class=\"has-small-font-size\">[1] <a href=\"http:\/\/www.stewart.com\/en\/stg\/massachusetts\/recording-a-trust-no-longer-required.html\" target=\"_blank\" rel=\"noreferrer noopener\">http:\/\/www.stewart.com\/en\/stg\/massachusetts\/recording-a-trust-no-longer-required.html<\/a><\/p>\n\n\n\n<p class=\"has-small-font-size\">[2] h<a href=\"http:\/\/www.reba.net\/images\/UserFiles\/File\/SandF\/ts33.pdf\" target=\"_blank\" rel=\"noreferrer noopener\">ttp:\/\/www.reba.net\/images\/UserFiles\/File\/SandF\/ts33.pdf<\/a><\/p>\n\n\n\n<p class=\"has-small-font-size\">Consulted:<\/p>\n\n\n\n<p class=\"has-small-font-size\"><a href=\"https:\/\/www.stewart.com\/content\/dam\/stewart\/Microsites\/massachusetts\/pdfs\/GETTING.pdf\" target=\"_blank\" rel=\"noreferrer noopener\"> https:\/\/www.stewart.com\/content\/dam\/stewart\/Microsites\/massachusetts\/pdfs\/GETTING.pd<\/a>f<\/p>\n","protected":false},"excerpt":{"rendered":"<p>A trust is a legally binding arrangement whereby a settlor transfers title to another person, the trustee, for the benefit of a third, the beneficiary. Trusts in Massachusetts are governed by the Massachusetts Uniform Trust Code, codified at G.L.c. 203E. &nbsp;<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[33,43],"tags":[],"class_list":["post-188","post","type-post","status-publish","format-standard","hentry","category-massachusetts","category-trustee-deed"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.5 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Understanding Massachusetts Trusts, Trustee\u2019s Deeds, and Trustee Certificates - Deeds.com<\/title>\n<meta name=\"description\" content=\"A trust is a legally binding arrangement whereby a settlor transfers title to another person, the trustee, for the benefit of a third, the beneficiary. 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Trusts in Massachusetts are governed by the Massachusetts Uniform Trust Code, codified at G.L.c. 203E.","og_url":"https:\/\/www.deeds.com\/articles\/understanding-massachusetts-trusts-trustees-deeds-and-trustee-certificates\/","og_site_name":"Deeds.com","article_publisher":"https:\/\/www.facebook.com\/deedsrealestate\/","article_published_time":"2016-05-06T23:39:36+00:00","article_modified_time":"2024-04-26T03:21:32+00:00","author":"Deeds.com","twitter_card":"summary_large_image","twitter_creator":"@RealEstateDeeds","twitter_site":"@RealEstateDeeds","twitter_misc":{"Written by":"Deeds.com","Est. reading time":"4 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.deeds.com\/articles\/understanding-massachusetts-trusts-trustees-deeds-and-trustee-certificates\/#article","isPartOf":{"@id":"https:\/\/www.deeds.com\/articles\/understanding-massachusetts-trusts-trustees-deeds-and-trustee-certificates\/"},"author":{"name":"Deeds.com","@id":"https:\/\/www.deeds.com\/articles\/#\/schema\/person\/8e0eeca72de74094ddaa30fc54159b6b"},"headline":"Understanding Massachusetts Trusts, Trustee\u2019s Deeds, and Trustee Certificates","datePublished":"2016-05-06T23:39:36+00:00","dateModified":"2024-04-26T03:21:32+00:00","mainEntityOfPage":{"@id":"https:\/\/www.deeds.com\/articles\/understanding-massachusetts-trusts-trustees-deeds-and-trustee-certificates\/"},"wordCount":823,"publisher":{"@id":"https:\/\/www.deeds.com\/articles\/#organization"},"articleSection":["Massachusetts","Trustee Deed"],"inLanguage":"en-US"},{"@type":"WebPage","@id":"https:\/\/www.deeds.com\/articles\/understanding-massachusetts-trusts-trustees-deeds-and-trustee-certificates\/","url":"https:\/\/www.deeds.com\/articles\/understanding-massachusetts-trusts-trustees-deeds-and-trustee-certificates\/","name":"Understanding Massachusetts Trusts, Trustee\u2019s Deeds, and Trustee Certificates - Deeds.com","isPartOf":{"@id":"https:\/\/www.deeds.com\/articles\/#website"},"datePublished":"2016-05-06T23:39:36+00:00","dateModified":"2024-04-26T03:21:32+00:00","description":"A trust is a legally binding arrangement whereby a settlor transfers title to another person, the trustee, for the benefit of a third, the beneficiary. 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