Nominee Trust Form For Service Book
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FAQ
The trustees do not file income tax returns - the activities of the trust are shown on the tax returns of the beneficiaries.
The document or statement also contains details of the trust's purpose, its beneficiaries, and how it will be managed by the trustee. The declaration of trust is sometimes referred to as a nominee declaration.
The Nominee Structure The principle of a nominee structure is that the shareholdings of individual minor shareholders are transferred to a single shareholder entity with the sole purpose of holding those shares on trust for the shareholders.
Nominee trusts can be used to avoid reporting the ownership of real estate on the public record. The deed, or other filed document, lists the trustee but not the undisclosed principals. Nominee trusts can be used to avoid shares being registered in the names of the beneficiaries.
The most common example of when a declaration of trust is used is the situation where an adult son or daughter borrows money for a deposit on a first house from his or her parents. The parents may have a mortgage already, and the terms of that mortgage prevent them from borrowing under another.