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Aug 6th, 2022
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How to Link light in the Liquidating Trust Agreement

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hi everybody armani mazekin here today i wanted to take a minute and talk to you about how you actually administer a trust when a loved one passes this is a very important step in the administration or estate planning process that a lot of people actually overlook so a lot of people think that once they create the trust and they transfer all of their assets to it theyre done and theres nothing else left for them to do for the most part this is true because the person that has passed away has nothing more to do after death however the person that theyve appointed as trustee to take over after they are gone uh must follow through with the deceased persons wishes so the loved one that has passed away has outlined exactly what he wants done and how he wants it done and has appointed a trusted person to take care of every everything for him and this person we call the trustee so the trustee has to then step up and fulfill his duties as as outlined in the document and so what does a tru

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However, if a liquidating trust is established for a corporation that is in bankruptcy, an EIN for that trust is required.
A liquidating trust formed for the primary purpose of liquidating and distributing the assets transferred to it is taxed as a trust, and not as an association, despite the possibility of profit ( Reg. 301.7701-4(d)).
Liquidating trusts are grantor trusts. The identity of the grantor depends on whether a letter ruling is obtained from the Service pursuant to Rev. Proc. 94-45.
Liquidating trusts are funded with assets held for the benefit of creditors who may have a claim against the debtor. These trusts can exist from several months to several years, depending on how long it takes to liquidate the assets and work through various claims and settlements.
The purpose of a liquidating trust is to: Collect and hold assets and claims of the debtor as specified in the bankruptcy plan. Liquidate the trust assets. Resolve disputed claims.
A liquidating trust formed for the primary purpose of liquidating and distributing the assets transferred to it is taxed as a trust, and not as an association, despite the possibility of profit ( Reg. 301.7701-4(d)).
An organization will be considered a liquidating trust if it is organized for the primary purpose of liquidating and distributing the assets transferred to it, and if its activities are all reasonably necessary to, and consistent with, the accomplishment of that purpose.
The objective of a liquidating trust is to expedite the wind-down process and to create efficiencies, allowing investors to receive proceeds in an orderly manner and removes the potential of liability claimed against the funds and/or its directors.

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