What Is a Nominee?
A nominee is a person or entity that holds title to property or acts in a transaction on behalf of someone else — the true or "beneficial" owner. The nominee's name appears on the document or account, but the real ownership and control rest with the party the nominee represents. Nominees are used for convenience, privacy, or administrative efficiency.
Common Uses in Florida
- Nominee on a deed or title — holding record title while another party holds the beneficial interest
- Nominee for an entity being formed — signing or holding assets until a company is organized
- Land trusts — a trustee holds title as nominee for the beneficiaries under Florida's land trust statute
Nominee vs. Beneficial Owner
The key distinction is between legal title (what the nominee holds) and beneficial ownership (the real economic interest). A nominee generally must act at the direction of the beneficial owner and has no independent right to the property. Because nominee arrangements separate record ownership from real ownership, they should be documented carefully, and they may have tax and disclosure implications — including under federal beneficial-ownership reporting rules.
Related Terms
- Trustee — Often serves as a nominee holding legal title
- Beneficiary — The party for whom a nominee holds property
- Principal — The party a nominee may act for
Barnes Walker
Barnes Walker's attorneys structure and document nominee, land trust, and title-holding arrangements for Florida owners and investors. Request a legal inquiry for assistance.
Reviewed by the attorneys at Barnes Walker, Goethe, Shea & Robinson, PLLC