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The trustees do not file income tax returns - the activities of the trust are shown on the tax returns of the beneficiaries.
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 trustee may have to file a return if the trust meets any of these: The trustee or beneficiary (non-contingent) is a California resident. The trust has income from a California source.
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.
Realty trust, sometimes also called nominee trusts, are used to hold real estate. The realty trust is unlike other trusts in that it establishes an agency relationship, where the trustees can only act with the express authority of the beneficiaries.