liquidating trust

liquidating trust
A trust, the purpose of which is liquidation as soon as the circumstances will permit, albeit it may be carrying on a business, where the engagement in business is incidental and necessary to the preservation of assets. Helvering v Washburn (CA Minn) 99 F2d 478. An incidental intention to liquidate in case of unsuccessful business operations is not sufficient to make a liquidating trust out of what would otherwise be a taxable association under the income tax statute. Jackson v United States (CA9 Cal) 110 F2d 574.

Ballentine's law dictionary. . 1998.

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