Liquidating trust 2016 Couple cam adult free group
At the end of the fund's life cycle or term, the fund manager may have certain assets that are not easily liquidated and convertible into cash for distribution to the owners of the fund.It may take several years for such assets to be converted into cash.Should the purpose of the entity change, such as to carry on a for-profit business, then the entity will no longer be considered a liquidating trust.Also, if the time period is unreasonably prolonged, the status of the entity may change from a liquidating trust.Tax implications of a liquidating trust A liquidating trust is generally considered a grantor trust for tax purposes.The trust will be considered a liquidating trust with the primary purpose of liquidating its assets.Results set forth in the Quarterly Summary Report should not be viewed as indicative of future results.
Download PDF When "Liquidating Trust" is mentioned, most people associate this with bankruptcy.
Such forward-looking statements are based on current plans, expectations, estimates and beliefs about the value of the assets of the Trust.
Words such as “anticipates,” “expects,” “intends,” “plans,” “believes,” “seeks,” “estimates” or variations of such words and similar expressions are intended to identify such forward-looking statements.
A liquidating trust is a new legal entity that becomes successor to the liquidating fund.
The remaining assets and liabilities are transferred into the newly formed trust and the former owners of the liquidating fund become unit holders or beneficiaries of the trust.
Such assets may consist of securities that are illiquid or have certain restrictions or monies held in escrow where it will take several years for the conditions to be met for release of such funds.