Massachusetts Trust

(redirected from Unincorporated Business Organizations)
Also found in: Financial.

Massachusetts Trust

A business arrangement that is used in place of a corporation or partnership in which trustees hold title to property for the advantage of beneficiaries for investment purposes.

A Massachusetts trust is another name for a common-law trust or a Business Trust, which offers its beneficiaries limited financial liability in transactions in which it engages.

Massachusetts Trust

n. a business in which the investors give management authority to a trustee, and receive "trust certificates" representing their investments. Since they own only the certificates and do not participate in management, the investors can only lose their investment and are not personally liable for any debts of the trust. This is similar to a "limited partnership." A Massachusetts Trust is strictly a business entity and bears no relationship to a personal trust like living and testamentary trusts set up to manage and protect the assets of individuals and provide for eventual distribution.

References in periodicals archive ?
He wrote, influentially, on unincorporated business organizations, on corporate and securities law, on choice of law, on the legislative process, on law practice, on legal education, and on the movies, just to name some of Larry's scholarly contributions.
1) The law recreates a limitation on the compensation deduction of unincorporated business organizations similar to the 2009 maximum compensation provision.
The limitation now creates a potential constitutional problem between the treatment of incorporated and unincorporated business organizations
Much is made when discussing the limited liability company (the LLC), the modern partnership, and the limited partnership, the latter two being business forms driven into existence by the need to maintain relevance in a world now containing the LLC, of certain immutable characteristics of unincorporated business organizations.
7701 to allow domestic unincorporated business organizations to elect (i.
On March 29, 1995, the Internal Revenue Service issued Notice 95-14, asking whether a simplified method of classifying unincorporated business organizations should be adopted (commonly referred to as the "check-the-box" system).
The Service has recently announced in Notice 95-14 that it is considering simplification of the regulations to allow unincorporated business organizations to elect status as a partnership or as a taxable corporation.
Notice 95-14(33) provides that the IRS and Treasury are considering simplifying the classification regulations to permit taxpayers to treat domestic unincorporated business organizations either as partnerships or associations on an elective basis.