Nominee trust

A nominee trust is an arrangement whereby one or more persons appoint a "trustee" to be listed on legal title, or other documents, on their behalf. The arrangement is simple and passive, the trustee is to do nothing except what they are directed to do by the beneficiaries. Technically it is not a trust but an agency arrangement, although it has been characterized as a hybrid between a traditional trust and an agency relationship. One use of the nominee trust is 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. Another use is to facilitate transfer of real property without involving the county recorder.