Estates in Real Property

SECTION 34-4-30

§ 34-4-30. Conveyance to or by nominee trust.

(a) Notwithstanding the provisions of § 34-4-27, title to real estate conveyed to a nominee trust or to the trustee of a nominee trust and conveyances of real estate by a trustee of a nominee trust are not on that account defective, and the conveyance shall be deemed valid so long as the following shall have occurred:

(1) A memorandum of trust pursuant to § 34-4-27 shall have been properly prepared and recorded; and

(2) The trustee of the nominee trust shall include in the memorandum of trust a statement to the effect that the trustee has received the consent of each of the beneficiaries authorizing the action of the trustee as required by the nominee trust.

(b) A trustee executing a memorandum of trust and representing that they have obtained the consent of the beneficiaries shall be subject to personal liability to each of the beneficiaries as well as the grantees and the grantees' successors and/or assigns under the instrument purported to be executed with the consent of the beneficiaries, in the event such consent was not obtained.

(c) A nominee trust is defined as a trust in which the trustee(s) is/are not granted discretionary authority to act without the consent, concurrence, or direction of the beneficiaries.

History of Section.
(P.L. 2016, ch. 58, § 1; P.L. 2016, ch. 59, § 1.)