Randy Watson Posted February 17, 2009 Posted February 17, 2009 Sal Tripodi's ERISA Outline refers to the use of liquidating trusts or partnerships to facilitate the distribution of illiquid assets when terminating a plan. Basically the plan distributes the illiquid assets to the trust or partnership, which in turn issues participation certificates to the participants. When the liquidating trust or partnership sells the assets it makes disbursements to the participants. Anyone ever attempt this sort of thing? What benefit would this have over making distributions "in-kind"?
J Simmons Posted February 17, 2009 Posted February 17, 2009 Sal's method can help if (a) more than 1 EE wants a part of the same in-kind asset, (b) an in-kind asset is too large to be absorbed and distributed as part of just one EE's benefits, and © to sell the in-kind asset later, only a single trustee or general partner's signature is needed. John Simmons johnsimmonslaw@gmail.com Note to Readers: For you, I'm a stranger posting on a bulletin board. Posts here should not be given the same weight as personalized advice from a professional who knows or can learn all the facts of your situation.
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