Void phone number in the Liquidating Trust Agreement effortlessly

Aug 6th, 2022
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How to Void phone number in the Liquidating Trust Agreement

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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.
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.
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.
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.
No, dissolving your revocable trust would not be a taxable event. You should be using one of your social security numbers for the revocable trust, so moving the funds from the trust to new transfer on death (TOD) accounts should be no different from moving money from accounts in your own names.
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)).

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