style of business organization in which a property is managed by a trustee and investors buy "trust units" (similar to buying stock shares in a company)
A Massachusetts business trust or MBT is a legal
trust set up for the purposes of business in the state of
Massachusetts. They may also be referred to as an unincorporated business organization or UBO.Many businesses are formed using MBT's to mitigate taxation, also significant numbers of
mutual funds are structured as MBTs.During the last century and through the mid years of this century the
tax laws and State regulations strongly favored corporate structures, tightening of these laws in the past 10-15 years have resulted in the resurgence of the use of the UBO. For example, in
1985 the
Scudder Capital Growth Fund, Inc. and
Kemper Money Market Fund, Inc. changed their forms of organization from corporate to a Business Trust Organization.
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A unique way to organize a business where the property is bought by, or transferred to, a trustee (such as a trust company) and the trustee issues trust units, which the investors, or their designates, hold as beneficiaries. - (
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