Reit liquidating trust


20-Nov-2020 02:18

The trustee takes control of the newly formed liquidating trust.The role of the trustee of the liquidating trust is to administer and manage the liquidating trust, sell assets, pay creditors, resolve any claims and distribute any available funds to the beneficiaries of the trust.Such agreement provides for trustee duties, compensation of trustees, and governance as well as distributions and other administrative matters.The liquidating trust normally has a lower cost structure than the existing fund and is managed on an "as needed" basis by the trustee as opposed to a full-time basis for the 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.The newly formed trust is governed by a trust agreement executed between the former fund and the trustees before liquidation of the fund.Over the last decade, a number of firms have been established to provide trustee services in addition to trust departments of banks.A liquidating trust is generally considered a grantor trust for tax purposes.

reit liquidating trust-8

aim lifestream not updating

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.

A business trust is either treated as a corporation or partnership for federal income tax purposes.