The attleboro mutual liquidating trust

Without the benefit of insurance, a challenge to a trust’s status could lead to the diminution in value of the trust assets, or worse, if the challenge is made after funds have been distributed, there may not be sufficient trust assets to defend such challenge, or pay any tax, interest or penalties, and the practical recovery of funds from beneficiaries may be difficult.Ambridge’s Tax Qualification Insurance extension can protect trusts (and indirectly their beneficiaries) from the financial exposures resulting from a disqualification as a liquidating trust.For information about the data provided, please review the Disclaimer statement.

Section 1123(b) (3) of the Bankruptcy Code facilitates the use of a liquidating trust for prompt administration of the estate by providing post-confirmation standing to an appointed representative of the estate to enforce claims and interests.Because liquidating trusts are formed to maximize value and distribute to creditors some or all of the proceeds of divested assets of a formerly distressed and now liquidated entity, trusts and trustees are subject to scrutiny of already disgruntled beneficiaries or other third parties who may disagree with the manner in which the trustee is attempting to liquidate otherwise illiquid assets.Adding to the concern of trustees is the fact that, by its nature, the trust is designed to liquidate and distribute all of its assets.Where required, management has the skill sets to provide the property management, asset management and construction management expertise in order for our investments to realize their full potential.With certain limitations, we will invest in real estate asset categories as well as most positions throughout the capital structure.A liquidating trust is a tax-efficient vehicle to liquidate assets because income of a qualifying liquidating trust is only taxed as income at the beneficiary level.

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