Massachusetts Trust

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Massachusetts Trust

A trust whereby the trustee or trustees run a business on behalf of beneficiaries. That is, the trustees act as the managers and the beneficiaries act as shareholders. Beneficiaries may sell their position as beneficiaries. The trustees own all property associated with the business. Income from a Massachusetts trust may be taxed more favorably than other income. The term derives from the first such trust, which was formed in Massachusetts in the late 19th century to avoid local real estate regulation. It is also called a business trust or an unincorporated business organization.
References in periodicals archive ?
As a general rule, there is at least the expectation that there is a greater degree of modifiability permitted in unincorporated business organizations than in business corporations.
Beginning with the LLC and since applied across most other significant unincorporated business organizations, (22) the distinctions between the incorporated and unincorporated realms have been steadily reduced.
Rather, from 1977 through the current day, limited liability seems to be on an inexorable march toward becoming the default rule among unincorporated business organizations.
The express and rather extensive provisions in the corporate law addressing uncertificated shares supports the position that the certification of ownership interests is not itself helpful in distinguishing incorporated from unincorporated business organizations.
Traditionally, the law of unincorporated business organizations (155) has been premised upon the particular relationships between the owners.
Current law requires that unincorporated business organizations use the classification rules of Regs.
In Notice 95-14, the IRS and Treasury announced their intention to consider simplifying the existing entity classification regulations to permit taxpayers to elect to treat certain domestic unincorporated business organizations as partnerships or as associations for federal tax purposes.
We strongly urge the government to move forward in issuing guidance to simplify the method of classifying unincorporated business organizations.