Which trust form is also known as a Massachusetts Trust?

• A. Sole titleholder
• B. Business trust / common law trust / Massachusetts Trust
• C. Cooperative Association
• D. Not-for-profit corporation

Answer: (B)

A Massachusetts Trust is a form of trust known to practitioners as a business trust or common law trust. This structure pools investors’ assets and has trustees who manage the trust for the benefit of the beneficiaries, a setup that became known in Massachusetts and was widely used for investment vehicles such as mutual funds. The same entity is described using these interchangeable terms, which is why the option listing “Business trust / common law trust / Massachusetts Trust” is the best fit.

The other options describe different forms of organizational structures. A sole titleholder implies ownership by a single person rather than a trust arrangement; a cooperative association is a member-owned cooperative, not a trust; a not-for-profit corporation is a corporate entity focused on nonprofit purposes, not a trust.