Liquidating my assets pedih juburnya
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331, a liquidating distribution is considered to be full payment in exchange for the shareholder’s stock, rather than a dividend distribution, to the extent of the corporation’s earnings and profits (E&P).
If the trust owns a house, for example, the mortgage normally must be paid off before any distributions to trust beneficiaries, even if this requires the sale of the house.
If the trust was created under your will, state governments generally require the executor to issue public notice of the probate of the estate -- through a newspaper ad, for example -- and allow creditors a statutory period of several weeks to make claims against assets.
Trust creditors also include tax authorities, and trust income is subject to taxation if it exceeds 0 in any given tax year.
Depending on the kind of trust you've set up, your assets may or may not have to go through probate.Nothing stated or implied in this article should be construed to be legal, tax, or professional advice. is not a law firm and this article should not be interpreted as creating an attorney-client or legal advisor relationship.For questions regarding your specific situation, please consult a qualified attorney.The trustee will also need to collect any debts owed to the trust.Before the trustee distributes remaining trust assets to your beneficiaries, she needs to create a distribution plan that conforms to the terms set out in the trust document.
The assets of a living trust normally do not have to go through probate, but the assets of a trust created by your will always do.