Stores liquidating trust about liquidating
Petrie, the retailer and philanthropist who gave to charities, arts institutions and people he read about in the newspaper, died on Sunday at his home in Manhattan. One of the country's wealthiest men, with a fortune estimated at 0 million by Forbes magazine, Mr.
Petrie, who had been ill most of this year, died of lung and kidney problems, his wife, Carroll, said.
However, the consequence of business trust status was radically altered in 1997. Prior to the 1997 release of the watershed check-the-box regulations, the 1960 "Kintner" federal tax regulations generally incorporated ancient case law to classify trusts.
and its debtor affiliates (“Plan”) became effective and their assets were transferred to the HERO Liquidating Trust. As chapter 11 filings increase, so will the number of chapter 11 liquidations. §1146(c) provides that "The issuance, transfer or exchange of a security, or the making or delivery of an instrument of transfer under a plan confirmed under §1129 of this title, may not be taxed under any law imposing a stamp tax or similar tax," failing to pay other taxes could create personal liability for the liquidation trustee if the liquidation trust's assets are depleted. The court held the trustee personally liable under 26 U. Although the trustee in Hemmen was not held personally liable for taxes, it is an example of the caution a liquidation trustee must exercise in administering the liquidation trust. Indeed, filing chapter 11 does not equate to reorganization. Additional liability may result from the requirement to pay quarterly fees to the U. Trustee "until the case is converted or dismissed." 28 U. This generally means trust income is taxed to the beneficiaries when trust income is actually distributed.When trust income is accumulated for later distribution, it is "temporarily" taxed to the trust itself and then later to beneficiaries who receive distributions and a form of tax credit for the tax paid earlier by the trust.